Money Mindset Tips

Let’s face it, few things in life have as much impact on our mental health as our personal finances. May is Mental Health Awareness Month and as such, talking about the psychology of money comes at no better time.

Folks in Utah often struggle with their perspective on money. A recent report from the Kem C. Gardner Policy Institute found that Utahns are less confident in the economy than most Americans. Another study by the Cultural Current Institute showed that the average Utahn carries more than $79,000 in debt. With an average income of just over $57,000, Utahns have the highest debt-to-income ratio in the entire country.

The stress around finances is a real issue. It can take a toll on a person’s mental health. Building a positive money mindset may be a step in the right direction.
A “positive money mindset” isn’t just a phrase you hear quoted by social media influencers from time to time, it’s a real concept that can pay off dividends in improving our relationship with finances, and therefore, improving our mental health. By practicing a positive money mindset, we can make better decisions with our finances, escape debt more easily, and work towards achieving our financial hopes and dreams. To Altabank, your relationship with finances matters, and we want to help you have a positive money mindset.

Here are five ways you can develop a positive money mindset:

We can’t go back and change the past, we can only learn from it and seek to do better moving forward. Maybe you’ve made a few unwise investments. Perhaps you bought a car that’s too expensive or a house you can’t afford. These missteps can cause deep regret and emotional pain, in addition to the stress that comes with trying to keep your head above water.

But, a person with a positive money mindset knows they don’t have to beat themselves up over the past. It’s possible that some of your debt brought you a bit of happiness. It may have been necessary or served a purpose in the moment. You can pay it off and if needed, make better decisions in the future.

Comparison, they say, is the thief of joy. We all sometimes fall into the trap of longing for the things others have that we do not. You may notice your neighbor driving a new car every year, or going on fabulous vacations each summer and in the pursuit of having similar luxuries, make hasty and unwise financial choices.

It’s important to remember that looks can be deceiving, and in many cases, they are. That person you see driving a new car or taking a trip to the beachside resort could be building a mountain of credit card debt. They may in actuality, be worse off than you. In today’s age, where many people only post the most enviable snapshots of their lives on social media, we’re not getting the whole picture. Comparing your success to what you see on someone else’s Instagram can be a slippery slope.

We all know that budgeting is a cornerstone of financial success. However, when crafting a budget, it’s a good practice to carve out a line item or two for things you enjoy.

Maybe you enjoy going to the movies or taking your partner out for dinner. Perhaps you have a larger goal, such as taking a much-needed vacation or buying a motorcycle. You should include those things in your budget. When you know you’ve planned for it, you can spend the money on the things you like much more easily, knowing the rest of your finances are also in order.

We may not have everything we want, but hopefully, we have many things to be grateful for. You may not live in the biggest house on your block, but you have a roof over your head to be thankful for. You may not drive the flashiest car in the company parking lot, but you have a reliable piece of transportation to get you to and from work safely.

Chances are, we take many of the things we wish were better for granted. It’s a certainty that someone, somewhere in the world—or even much closer to home—would do anything to have the things we have already earned or been given. Being grateful can remove the emotional weight of longing for more and create a rippling effect of positive and productive thinking.

A positive money mindset cannot be formed by burying your head in the sand. You must come to grips with your finances to see where your money is going and why. By taking time to review your spending, you can learn what you’re doing wrong, and more importantly, what you’re doing right.

Build on the good habits, work on shedding the poor ones. Face your fears head-on and come up with a game plan to turn things around or do even better. More than likely, your financial situation didn’t happen overnight. It may take time to get out of a hole, but you can do it by steadily improving and focusing on doing things right every day.

To learn more about how Altabank can help you cultivate a positive relationship with your finances, please visit one of our branches to chat with a member of our team. Let's discuss your financial journey together and explore ways to empower your money mindset.