Do you feel rich, secure, and financially abundant? Or do you worry about having enough to make ends meet?
Now, this ain’t about the cha chang cha chang… or the ba bling ba bling. I’m not asking about how MUCH money you make or spend. I want to know how you feel about your current circumstances.
Money can be a source of stress, fear, and limitation. Or it can be a beautiful tool to solve problems, live generously, and change the world.
How you think about money determines the role it plays in your life.
Don’t get me wrong. The numbers in your bank account do matter — but they’re not the whole story. If you’d tried to tell me that in my early 20s while I was working two day jobs, bartending at night, facing tens of thousands of dollars in credit card debt and living on my friend’s couch? I’d have rolled my eyes. I was way more concerned with changing the – to a + on my bank statement, not my brain.
Now after two decades of growing my fledgling business into a highly profitable, socially conscious company that helps millions, I can look back and see how changing my beliefs about money changed everything.
True wealth depends on your money mindset.
What Is a Money Mindset?
Your “money mindset” is simply your set of beliefs — usually subconscious — about money. It’s the way you approach earning, saving, spending, and sharing in your life.
Your financial habits — good and bad — are rooted in mindset. Your feelings of security or uncertainty, limitation or resourcefulness, victimhood or generosity are impacted by your beliefs about money.
All of the messages you’ve internalized about money over your lifetime boil down to two basic orientations toward money — scarcity or abundance.
Scarcity vs. Abundance Mindset
Do you live in an abundant, expansive universe? Or do you live in a world of fierce competition for scarce resources? When we talk about money mindset, it really comes down to these two belief systems.
A scarcity mindset looks something like this:
You’re always scrambling to make a few bucks or wondering how to earn more money. You stress about paying the bills, complain about paying taxes, and resist giving anything away. You scrimp and save yet somehow you never have enough cash leftover for a nice dinner, date night, or a movie. Whether you’re making minimum wage or a competitive salary, you have a “broke” mentality and it never quite feels like enough.
Scarcity beliefs about money sound like this:
- I’m not good with money.
- Someone else will take care of this for me.
- People with money are greedy.
- I’m not _____(smart/talented/privileged/etc.) enough.
It sucks.
If you’re thinking, “Marie, that’s not my mindset; that’s just my life. I DON’T have enough money.” That’s exactly what a scarcity mindset would say.
Don’t worry — if you’re operating from a scarcity mindset, you’re NOT stuck there. Stick with me here, and let’s flip the coin.
An abundance mindset looks like this:
You appreciate what you have — whether it’s pennies in your pocket or a private jet — and enjoy being generous with others. You have confidence in your ability to make and receive money.
You know there’s always enough, and there will always be more. You enjoy sharing the wealth and don’t fret over bills or unexpected expenses.
An abundance mindset sounds like this:
- I love learning about money.
- I can take charge of my finances.
- Money gives people the opportunity to contribute to others and make a powerful impact.
- I am always enough just the way I am.
Whether or not you’re operating from an abundance mindset right now, remember — mindset is malleable. When you know where your beliefs came from, you can change them.
Where Does Your Mindset about Money Come From?
Many of your deeply ingrained beliefs about money come from childhood experiences you might not even remember.
If you were raised in an environment of scarcity, you might take that mentality with you into adulthood. Maybe your parents said things like, “Money doesn’t grow on trees!” or “Are you kidding? We can’t afford that!”
If you grew up in an environment of generosity and financial security, you might have a more abundant mentality. You heard messages like, “It’s only money, you can always make more” and, “We’re so lucky to have everything we need.”
Early experiences with money, lessons taught by your family, and the habits of people around you all affect how you think about money.
Your current environment matters, too: The people you spend time with, your neighborhood, the books you read and the podcasts you listen to. Research shows we’re more affected by our environments than we think. If you’re surrounded by people with a broke mindset, it’s easy for their habits to rub off on you.
Before you start cursing your childhood or vowing to ditch all your scarcity-minded friends, slowww down.
The people around you matter, but it’s not really about them. Changing your mindset starts and ends with you.
6 Ways You Can Change Your Money Mindset
Are you royally screwed if you learned to believe in scarcity?
Not at all. You can train your brain for a new money mindset starting today.
Not many people I know, including myself, grew up with wealth, whether that’s actual cash or an abundant money mentality. We don’t have to be stuck in that scarcity mentality. We can break out of it. You can choose to release your limiting beliefs around money and create an abundance mindset.
In this MarieTV, I’ll show you six ways to turn that money frown upside down — including habits I use personally to maintain an abundant money mindset.
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I have been on a 14 day cleanse and this is the first time I've had coffee, so I am charged. Hey, it's Marie Forleo, and you are watching MarieTV, the place to be if you want to create a business and life you love. And this whole shindig is Q&A Tuesday, and today's question comes from Elise.
And she writes, "Hi Marie, big fan. My question today is about my money mentality. You see, I recently became aware that I'm surrounded by poor people. What I mean is, everyone in my life at the moment has a poor person mentality, including me. It feels like my family, friends, and even my partner are stuck in scarcity. They're scrambling for dollars, stressed out about bills, complain about the government stealing from them, and say everyone's got their hands in your pocket. It's gotten to the point where movies are out of the question, date nights don't exist, and there are no more nice dinners. It sucks. So my question is, how do you break out of the scarcity mentality when everyone around you is stuck in it? Should I cut everyone off and move to Greenland, or do I have to constantly read books about money? Help. Love, Elise."
Elise, this is an awesome question and you are so not alone. Not many people I know grew up with wealth, whether that's actual cash or an abundant money mentality. Now here is the good news. You can totally break out of your scarcity mentality and create a shift in the energy around you without moving to Greenland. Now I know you put a lot of emphasis on the people around you, but as you know, the only person you can change is yourself, so that's where we got to focus. Here are six ways to turn that money frown upside down.
Number one, you got to write yourself a fat reality check. Elise, I know you probably know this, but let me remind you. Almost half the world, that's like 3 billion people, live on less than $2.50 a day, and 80% of all humanity lives on less than 10 bucks a day. Now, I did a little research on you, and I'm pretty sure you don't fall into either one of those populations. Now, I'm not making you wrong for wanting more, but you got to get that true abundance starts with appreciating everything you already have right now. So if you want out of that scarcity mentality, you got to start appreciating what you got and make it a habit. You've got a roof over your head, you have clean running water, and you have some damn cute clothes. I think Oprah said it best when she said, "Be thankful for what you have. You'll end up having more. If you concentrate on what you don't have, you will never ever have enough."
Number two, get an ATM. What? Steal a cash machine? No, silly girl. It's an automatic transformative mantra. That's just a simple phrase you put on automatic repeat that transforms your money mindset. This is something I personally use to overcome my own scarcity mentality around money, and I still use it to this day. Here it is. Anytime you part with money, whether you're paying a bill or you're buying something, say this, "There's always more where that came from." This might sound silly, but there is real power in the words that we say to ourselves and immense power in rituals. It's a super simple way to retrain yourself in the truth, with a capital T, about money.
Number three, BYOL, Bring Your Own Luxury. Who says he can't have nice dinners at home? In fact, I actually prefer to eat at home. My meals taste way better, they are so much healthier, and they cost a fraction of the price. You can take any inexpensive dinner and make it a nice dinner if you plate it beautifully, and you light some candles, and you put on some music, and you wear something nice. With just a little bit of effort, you can take a cheap dinner and make it an amazing dinner. In fact, one of my favorite resources for budget friendly recipes is this magazine, Cooking Light.
Number four, start a fun fund. Before we go any further, I got to say, you and your partner have got to get on the same page about money. Now, you can't change your family or your friends, but it is vital that you and your man get and stay on the same page regarding finances. You can make busting out of your scarcity mentality something you work on together, and the fun fund can help. Here's what that is. It's a checking account, or a piggy bank, or a pickle jar that's earmarked for fun and fun only. So that money is exclusively for movies or meals out or other things you and your partner might normally say, "We can't afford."
Number five, build your knowledge bank. Now you said, "Do I have to keep reading books about money?" And my answer, until you get your money game together, yes. And whether it's books or seminars or audios, it's not just about reading or listening, but you actually have to implement it, especially if you want to have money and keep it. Now as for money seminars, they can be a little cheesy and people may try and sell you some more stuff, but that doesn't matter. You'll still learn a ton. And what's even more important, you're going to be around people who are actively improving their own money mentality.
Number six is spread the wealth. So this is another strategy that I've personally used, and it's a little bit counterintuitive. So anytime you're feeling a lack around money, you've got to give some away. So for example, if you catch yourself in major scarcity mode, you should donate a little bit of money to a cause you believe in. Now, if you're not sure where to donate, we have an organization that we love, it's called Kiva, and we also have our own lending team. And I'll put links below this video so you can check it out. Another way to spread the wealth is to just be generous with your friends and family. There's something amazing about saying, "I'll treat." Even if it's for something simple like a coffee or a home cooked meal. Now, as we've discussed, you cannot change your family or your friends around their money mentality, but you can be a living demonstration of a more abundant reality.
That is my A to your Q, Elise. I hope it helps. Now I would love to hear from you. Have you broken out of a scarcity mentality around money? And if so, how'd you do it? Now, if you're currently working through this, I would also love to know which of these six strategies resonated the most, and which can you put into practice starting right now? As always, the best and richest discussions happen over at marieforleo.com, so come on over there and leave a comment now. Did you like this video? I certainly did. If you dug it, please like it, subscribe, and share it with your friends. And if you want even more awesome resources to create a business and life that you love, plus some updates from me that I only talk about in email, come on over to marieforleo.com and sign up for email updates. Stay on your game and keep going for your dreams, because the world needs that special gift that only you have. Thank you so much for watching, and I'll catch you next time on MarieTV.
B-School is coming up. Want in? For more info and free training, go to joinbschool.com Hi. You so sensitive. The under the necklace chest hair. Under the necklace chest hair. Oh, I silly. Start a fun fund. Start a fun fund.
DIVE DEEPER: Money’s like you and me. It’s attracted to respect and appreciation. If you find yourself battling a scarcity mindset, try these two weird money habits to train your brain for abundance.
All your little thoughts and behaviors around money can make a difference, even the weird ones. Even tiny moves like picking up loose change on the sidewalk, buying coffee for a friend, and repeating certain mantras can transform the way you think about money — and, therefore, your entire financial situation.
Here are six ways you can change your money mindset from tight to right:
1. Write Yourself a Fat Reality Check
“Be thankful for what you have. You’ll end up having more. If you concentrate on what you don’t have, you will never ever have enough.” ~ Oprah
You’ve probably heard this before, but it’s worth a reminder: Over 1 billion people in this world live on $2.50 a day or less, according to FINCA International.
For those of us who aren’t part of that population, we’ve got to get into the habit of appreciating what we have.
You’re not wrong for wanting more, but a positive money mindset starts with appreciating what you do have — a roof over your head, food to eat, clean water, and a closet full of clothes. Spend more time appreciating what you have than worrying about what you don’t and you’ll feel abundant in no time.
2. Get an ATM
By “ATM” in this case, I mean an “Automatic Transformative Mantra.”
That’s a simple phrase you put on automatic repeat in your brain to transform your thoughts about money.
One of the simplest and most powerful changes I made to bust free from my own scarcity mentality was this: Anytime I part with money, whether paying a bill, making a donation, or spending money on myself, I say to myself, “There’s always more where that came from.”
This might sound silly, but there’s real power in the words we say to ourselves. Our rituals matter. An automatic transformative mantra is a simple way to retrain yourself to adopt new empowering money beliefs.
3. BYOL (Bring Your Own Luxury)
Who says you can’t have nice dinners at home? Or an exciting staycation? Or happy holidays and birthdays without fancy gifts?
You can turn any inexpensive dinner into a 5-star experience with beautiful plating, a few candles, and the right music. Put on a nice outfit, invite your main squeeze to do the same, and voila! An amazing dinner you’ll both remember.
Put in some extra effort to add special touches to your everyday activities. Surround yourself with people you love. When you delight in small moments, you’ll find yourself living a life of luxury without the expense (or the stress) that accompanies it.
4. Start a Fun Fund
Busting out of a scarcity mentality is something you have to work at, but that doesn’t mean it can’t be enjoyable. A Fun Fund can help.
This is a checking account, piggy bank, envelope, or money jar that you earmark for fun — and fun only. Set aside a little bit of money from paychecks or any extra or unexpected income and use it exclusively for the stuff you’d otherwise say you can’t afford, like:
- Movies
- Eating out
- Happy hour
- Friends’ birthday parties, baby showers, weddings, etc.
- A wine-and-paint night
- Yoga classes
- Just-for-fun new shoes
An abundance mindset means focusing on what you can afford and letting yourself enjoy the fruits of your labors.
5. Build Your Knowledge Bank
Learn how to manage your money. It’s one of the most empowering things you can do.
Develop basic financial knowledge, like how to get out of debt, build an emergency fund, and manage your credit card bills every month. This sets you up for success no matter how much you’re bringing in or how much you’re spending.
I love learning about personal finance and money psychology.
These are some of my favorite books about money:
- Worth It: Your Life, Your Money, Your Terms by Amanda Steinberg
- MONEY Master the Game: 7 Simple Steps to Financial Freedom by Tony Robbins
- The Fearless Money Mindset: Broke Doesn’t Scare Me by Arian Simone
- Money, A Love Story: Untangle Your Financial Woes and Create the Life You Really Want by Kate Northrup
There are endless seminars, podcasts, newsletters, and blogs on the topic, so find a way you enjoy learning about money. Don’t let “I don’t know” be an excuse anymore!
6. Spread the Wealth
This strategy is a little bit counterintuitive, but works like magic.
Anytime you’re feeling a lack around money, give some away. Donate to a cause you believe in, or treat your friends or family to coffee.
This doesn’t have to be a huge amount. The point is just to adjust your thinking from scarcity to abundance. When you’re generous, you’re reinforcing the truth that there’s plenty to go around. There’s always more where that came from.
If you’re surrounded by scarcity, your own generosity can be a living demonstration — for yourself as much as for others — of a more abundant reality.
Not sure where to donate? We at Team Forleo love Kiva, an organization that lets you make loans to entrepreneurs and small businesses around the world. I’d be honored if you joined our Kiva lending team!
What’s Your Money Mindset?
If you want to achieve financial goals, start by making peace with where you are now. Appreciate what you have. Find small ways to be generous. Choose a more positive, abundant money mindset.
When you change your beliefs, you change everything.
Now, let’s turn this insight into action.
Grab a journal and spend 5 to 10 minutes writing your answers to these questions:
- What money problems in your life do you want to solve?
- What negative or scarcity-centered beliefs have stopped you from solving these problems until now?
- Now, write down all the reasons each of these beliefs is complete BS. Access the deeper, wiser part of you that knows they’re BS, and make an impassioned case against these beliefs.
You have the power to change your beliefs about money. Create an abundance mindset to transform your life from one of scarcity to generosity, which benefits all of us. The right beliefs about money just make cents!
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