5 Simple Challenges To Change Your Money Mindset
So many people I meet and clients I work with struggle with their money mindset. I used to struggle with it a lot myself, but I learned a lot along the way about how to shift to a more positive space. It took time and practice, though!
And if you’re anything like me, I bet you often think about where you are now, and what you might like to do differently going forward. You might realize that making some money mindset shifts is high on your list. If that’s the case, one of the biggest things you can do to change the way you think about money is to change what I call your money story.
By “money story” I mean the way you think about, relate to, and believe about money. This is where money mindset comes from, and when you change your money story, your money mindset is right there with it.
If you’re looking to change (or upgrade) your money story this year, you’re in good company. You’re also in the right place! That’s because today I’m sharing 5 of my favorite financial “challenges” to help you upgrade your money story!
Because sometimes a money mindset shift requires taking ACTION. That’s what these steps are all about.
These simple money challenges did more than help me shift my money mindset. They actually changed my life. I know they can make big and positive changes for you, too! They’ll not only help you save actual money, but they’ll also provide priceless shifts for your money story and your money mindset.
Let’s shift your money mindset with these 5 challenges!
Money Challenge #1: Go on a money spending freeze. It might sound restrictive, but I personally enjoy this exercise! It’s actually a lot more fun and revealing than it sounds.
Now, this isn’t about saving money (although that is a big benefit). It’s actually intended to show you what emotions drive the purchases you make. I had this revelation when I went on a 30-day spending freeze a while back. During that time, I remember stepping into retail stores and feeling obligated to buy something out of guilt, even though I didn’t really love anything I saw. Before that I honestly had no idea that guilt was a driver for my purchases, and it was truly eye-opening.
What else happened over this 30-day freeze? I ate through my pantry, pre-paid all my bills, and reflected on the emotional drivers behind my purchases. I got so much out of this experience that I’m actually a considering a one year spending freeze in 2025 (or at least another 30-day one)!
You could make your spending freeze for a week, a month, a year–you choose. The length of time isn’t that important. What is important is what even a short spending freeze can do to show you how you relate to money.
Money Challenge #2: Start putting $20 a month into investments. When I started investing, I started with just $20 a month. It was all I could afford at the time, but it was exactly what I needed to start to flexing my investment muscle. This simple step helped me get into a routine and just start!
Five years later, I am investing 2K a month into various investment avenues. But this first step changed the trajectory of my life. Without it I would never have gotten started or stayed consistent. This shook up my money mindset in surprising and productive ways.
So if you are just getting started with investing (like day trading with Robinhood), start where ever you are NOW, and starting building your investment “muscles.”
Money Challenge #3: Pay annually wherever you can. One of the strategies I used when I first saved 10K without really trying was by switching to annual billing. This means billing for apps as well as other business and life needs.
Now, if your cash flow is tight right now. But if you know you’re getting a tax refund this year, look into paying some of your subscriptions and fees annually. Not only do most places offer discounts for paying annually, but also you free up that monthly amount going out.
Pro tip: if you end up with some freed up cash flow doing this and you’re not sure what to do with it, (or don’t have an immediate need for it) keep the same recurring amount and set up an auto-transfer into your savings account.
Money Challenge #4: Make your money work for YOU. One way I can tell the economy is down is that banks are offering higher savings interest rates. So if you have a savings account, check how much interest it is earning for you! And, if you aren’t saving already, commit to an amount, any amount and set up auto-contributions. Even if it’s $20 a week.
I’ve had most of my investments and one savings account in Betterment for the last 8 years (previously known as Wealth Simple). This is because Betterment is offering 4.75% interest on their cash reserve savings accounts. There is no minimum to open an account, no fees, and you are insured above and beyond the 250K you’d get at banks. So if you’re considering a new place to put your savings, give it a look!
Money Challenge #5: Track your Cash Flow. Living on a fluctuating income can be a scary place, especially when times are lean. When I was living week by week, I printed a calendar and wrote out all my expenses and income on the calendar by day by day. This helped me manage the little money I had at the time in the best way I could. If I had “extra” money left over, I prepaid utilities, car payments, or anything major I could get ahead on.
Now that I’ve expanded in abundance, I’ve upgraded my skill set into a Chakra Budget , and that changed everything. I designed this practice to help me manage my money and balance my energy. But it all started with simply tracking my cash flow!
Tracking your cash flow in any capacity is a good step in the right direction, no matter how much money you have. So if you don’t have a “budget” (or your budget needs an upgrade) this year is the BEST year to accomplish this.
So there you have it! The top 5 money challenges that changed my life. Which one resonated with you the most?
What money challenges, goals, or visions do you have for yourself this year? I’d love to know! Leave me a comment below
Until next time…
Love, light, and MONEY, Honey…
Kaylee