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What is a Money Mindset?

Have you ever stopped to think about your money mindset and how your brain affects your bank account? Believe it or not, how you think can actually have an impact on your money. If your mindset isn’t having a positive effect on your finances, you can do something about it.

Understanding your money mindset

A money mindset is your unique, personal core beliefs and attitudes about money. It shapes the way you view money and influences how you spend, save, and manage it. In short, what you think and feel affects what you do.

Your money mindset also called a financial mindset is typically developed in childhood through observing the way your parents managed money. It can also develop through significant life events such as experiencing a long period of unemployment or receiving an inheritance.

You may not always be aware of your money mindset but research shows it has a strong impact on your financial behaviours and wellbeing. 


That means it’s helpful to reflect on both the spoken and unspoken lessons you’ve learnt about money throughout your life to boost your awareness and improve your ability to manage it.

The effect of our money mindset

The way we think about our money can be helpful and unhelpful. 

How we think impacts what we do with our money. For example, if you think “I’ll never be able to pay off my debt”, then you’re more likely to give up and allow debt to keep accumulating, which can then make it harder to get out of debt, affirming a belief that isn’t true. 

On the other hand, if you think “I can chip away at my debt every week and pay it off”, then you’re more likely to take actions to achieve this.

A positive money mindset

When you have a positive money mindset you:

  • think every problem has a solution

  • see challenges as opportunities

  • will ask for help rather than struggling alone

  • see the value of even small steps towards progress.

What does that look like?

  • You’re more likely to tackle difficult problems

  • You tackle problems step-by-step

  • You feel in control

  • You’re optimistic and solution-oriented

  • You’re willing to grow and learn

  • You’re motivated to keep trying

A negative money mindset

When you have a negative money mindset you:

  • think the problems are too big

  • think it’s too hard to fix your problems

  • resist seeking help

  • worry when progress is big or quick enough.

What does that look like?

  • You’re more likely to procrastinate.

  • You struggle to face your problems.

  • You feel out of control.

  • You feel anxious about solutions not working.

  • You feel guilt or shame about past financial mistakes.

  • You’re scared to try because you expect to make a mistake.

How to change your money mindset

The good news is, your money mindset isn’t set in stone. Here’s how you can change your money mindset.

  • Identify your money mindset.

  • Consider how your thinking impacts your behaviour and decisions, especially in the face of challenges.

  • Evaluate whether this mindset is true, fair, and/or helpful. For example, if you think you can’t say, ask yourself:

    1. How do you know this is true?

    2. Is it a fair statement to make about yourself?

    3. Does this way of thinking help you get closer to your goals and the person you want to be?

  • Consider what is a more balanced or helpful mindset. How can your mindset be more self-compassionate and motivating?

Let’s look at an example of how to shift from a negative to a positive mindset.

Unhelpful thought

“I’ll never get a raise.”

Helpful thought 

“I know my worth and will ask for a raise. If they say no, I haven’t lost anything and can try again later or look for new opportunities.”


Ask yourself: What does your money mindset look like? How could simply changing how you think help improve your finances?


What is a “broke mindset”?

A broke mindset is a negative money mindset where you believe that you will never have enough money.

What are some examples of a positive money mindset?

With a positive money mindset, you’re more likely to tackle challenges, look for solutions, recognise your progress and feel confident you will achieve your financial goals.

Can I get help improving my money mindset?

To help improve your money mindset you could try using a money coaching app like Wisr Today to help you understand your finances better, keep a money journal or talk to a professional to help you set your financial goals and put strategies in place to achieve them.


Check your credit scores with Wisr to stay ahead of the game.

Did you find this content helpful?

Disclaimer: This article contains general information only, and is not general advice or personal advice. Wisr Services does not recommend any product or service discussed in this article. You must get your own financial, taxation, or legal advice, and understand any risks before considering whether a product or service discussed in this article may be appropriate for you. We have taken reasonable efforts to ensure that the information is accurate at the time of publishing, but the information is subject to change. We may not update the article to reflect any change.

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