What’s Your Money Mindset?

Lizy Hoeffer
Senior Loan Officer, Guild Mortgage


It might come as a shock to many, but a person’s money mindset often stems from childhood experiences such as the first time you needed to pay for something yourself or the first time you had to borrow money from a family member. The first instance of money management can be difficult to remember, but it may impact the rest of your life.

One would think such a powerful moment wouldn’t easily be forgotten. You would think that one would remember the huge event that subconsciously sabotages one’s attempts to get ahead, but no! That would be too easy and would probably eliminate the need for therapists. So, the joke is on us until one day we find ourselves trying to figure out why we struggle so much when it comes to our relationship with money.

So, what is a money mindset? Simply put, it’s your subconscious relationship and behaviors around spending, saving, and investing money. It’s how you act and feel when you have it, what you think, feel, and do when you don’t have money, and what you feel about others when they have or have not!

Our money mindset develops when we are children but evolves throughout adulthood.


Something to note: You can have more than one money mindset issue. Many of us have suffered from several at the same time. Here are the five most common types of money mindset issues.

  1. Scarcity: You believe money is scarce, so you make it You spend every single dollar, you don’t live on a budget, and no matter how much money you have, you feel it’s never enough. But overcoming this mindset can be as easy as talking about money differently. For example: “I have other priorities” vs. “I can’t afford that.” Eliminate comparing yourself to others, and you can eliminate some really negative behaviors.
  1. Feeling Undeserving: Sometimes people don’t feel deserving of money or success because they come from challenging backgrounds that encourage this Much like dealing with scarcity, having positive self-talk can help. But also, try shifting your goals as they relate to money. For example, if you have guilt about earning money, you can frame your mindset around giving to charities or the community. When your goals are about giving back instead of taking in, it allows you to focus on the good you’re doing.
  1. Believing Money is the Root of all Evil: It’s a premise that we see played out in news and entertainment all the The villain always seems to be the rich guy, and the hero is a down-on-his-luck underdog. An effective way to change this mindset is to put yourself in a bigger room! Surround yourself with successful, giving, and optimistic people, and you’ll learn that some of the wealthiest people in the world are also the most kind and generous people.
  1. Money Can’t Buy Happiness: This is the notion that after $75,000 of income, your happiness doesn’t increase This statement may be true, but having money helps foster stability, which can ultimately reduce stress and contribute to happiness. It opens the door for more possibilities like education, giving back to charities, and growing through new experiences. If you learn to focus on fulfilling opportunities that money can bring rather than money itself, you can overcome this mindset.
  1. Undervaluing Yourself: One of the most complicated money mindsets revolves around the idea that “I’m not special enough” to earn or make a lot of It’s important to understand that most wealthy people are simply people who do the right things consistently over a long period of time. You don’t have to be a genius or have some special talent to have money; you just need to be a consistent saver and be willing to make safe investments in order to accumulate wealth. Small actions compounded over time have big results. So be a saver even if it’s just $100 a month. $100 a month over 30 years is a lot of money!


The most impactful thing you can learn in a money mindset journey is that once you face the fear and own your habits, you are free to change the outcome. You don’t have to live in the money mindset hamster wheel, you can say, “that once was a belief I had, until I learned to overcome it!”