Money Mindset

Greetings and welcome aboard the Money Mindset page at advancing mindset!! Yes you have arrived at the Money zone where we learn how to exchange value for goods and services rendered. Money has been a source of debate for ages – from religious treatises to philosophical arguments. In modern times, the discussion surrounding money as more tangible and less esoteric with emotional, ethical and practical considerations always in play. This can lead to either an unhealthy relationship with money or healthy one: it all depends on your mindset around it. It’s important to understand that having a positive outlook is the key not just towards achieving success but also leading a wealthier life – how you think about managing finances directly impacts how much money you make, save and spend.

Money plays such an important role in the lives of many people, yet so few have taken the time to examine their own mindset towards it. To be able to reach financial success, you need to have a solid understanding of your money mindset. How do you handle money? Are your decisions driven by emotions or rational thought? Do fear and worry creep in when making financial decisions? Understanding these aspects can help lead you on a path to more effective management of finances and long-term security.

In this article on money mindset, we will explore the various aspects of creating and nourishing an empowering Money Mindset that can potentially transform everything from your career trajectory to overall financial well-being.

Definitions of Money – Money Mindset

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context. 


Money is any item or medium of exchange that is accepted by people for the payment of goods and services

a commodity accepted by general consent as a medium of economic exchange.

money is something that holds its value over time, can be easily translated into prices, and is widely accepted

Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context.

Definitions of Mindset – Money Mindset

  • a person’s way of thinking and their opinions
  • a mental inclination or disposition
  • collection of thoughts and beliefs that shape your thought habits
  • collection of beliefs and thoughts that make up the mental attitude, inclination, habit or disposition that predetermines a person’s interpretations and responses to events, circumstances and situations.
  • An attitude, disposition, or mood. (
  • The ideas and attitudes with which a person approaches a situation, esp when these are seen as being difficult to alter. (World English Dictionary.)
  • The established set of attitudes held by someone. (Oxford Dictionary)
  • a mindset is a set of assumptions, methods, or notations held by one or more people or groups of people that is so established that it creates a powerful incentive within these people or groups to continue to adopt or accept prior behaviors, choices, or tools.”
  • A fixed mental attitude or disposition that predetermines a person’s responses to and interpretations of situations. (The Free Dictionary)
  • A mental inclination, tendency, or habit. ( – Medical Dictionary)
  • A person’s usual attitude or mental state is his or her mindset. (

Synonyms of Mindset – Money Mindset

Photo by Pixabay on
Photo by Pixabay on

Definitions of Money Mindset

To coin the term money mindset I am going to combine the defintions of money and mindset and create magic. I will define as below:

  • The mental inclination or disposition towards money
  • The attitude or mood that is focused on generating money
  • A person’s way of thinking that makes them attract money
  • The established set of attitudes held by someone that are focused on making money
  • The collection of thoughts and beliefs that shape your money habits
  • The fixed mental attitude or disposition that predetermines a person’s responses to and interpretations of money and its use.
  • The habit or disposition that predetermines a person’s interpretations and responses to money
  • The set of attitudes that determines the way an individual reacts towards money and its purpose
  • The beliefs that an individual or group of people hold about money
  • The character and habits that determine the reaction towards the value of money

How is Money Created? – Money Mindset

Money creation, or money issuance, is the process by which the money supply of a country, or of an economic or monetary region, is increased. In most modern economies, money creation is controlled by the central banks. Money issued by central banks is termed base money. Central banks can increase the quantity of base money directly, by engaging in open market operations. However, the majority of the money supply is created by the commercial banking system in the form of bank deposits. Bank loans issued by commercial banks that practice fractional reserve banking expands the quantity of broad money to more than the original amount of base money issued by the central bank. Wikipedia

In The UK

Most of the money in the economy is created, not by printing presses at the central bank, but by banks when they provide loans. Banks create around 80% of money in the economy as electronic deposits in this way. In comparison, banknotes and coins only make up 3%. Finally, most banks have accounts with us at the Bank of England, allowing them to transfer money back and forth. This is called electronic central bank money, or reserves. Bank of England

In the US

The Fed creates money by purchasing securities on the open market and adding the corresponding funds to the bank reserves of commercial banks. Banks then increase the money supply in circulation even more by making loans to consumers and businesses. Investopedia

Types of Money – Money Mindset

The different types of money as classified by the economists are:

Commodity Money

Commodity money is a type of money or physical good that has an intrinsic value. It’s value comes from a commodity of which it is made. Commodity money consists of objects having value or use in themselves as well as their value in buying goods.

Examples of commodities include gold, silver, copper, salt, peppercorns, tea, decorated belts, shells, alcohol, cigarettes, silk, candy, nails, cocoa beans, cowries and barley

Fiat Money

Fiat money or fiat currency is money whose value is not derived from any intrinsic value (it  is not backed by any commodity such as gold or silver) or guarantee that it can be converted into a valuable commodity (such as gold). fiat money is backed by the economic strength of the issuing government. It derives its value from supply and demand and the stability of the government.

Fiat money generally does not have intrinsic value or use value. It has value only because the individuals who use it agree on its value.

Examples of fiat money can include:

  • Any money that is not backed by a commodity.
  • Money declared by a person, institution or government to be legal tender, meaning that it must be accepted in payment of a debt in specific circumstances.
  • State-issued money which is neither convertible through a central bank to anything else nor fixed in value in terms of any objective standard.
  • Money used because of government decree

Fiduciary Money

Fiduciary money, cash or currency refers to banknotes and coins which are available in circulation in the economy. This is the liquidity available to economic actors to carry out transactions. It is a means of payment. Currency is tangible property, unlike scriptural money which is immaterial.


Coin money is the small, flat round piece of metal or plastic used primarily as a medium of exchange or legal tender.  The coins are normlly standardized in weight, produced in large quantities at a mint in order to facilitate trade and are most often issued by a government. Coins often have images, numerals, or text on them. In most cases, the highest value coin in circulation (excluding bullion coins) is worth less than the lowest-value note

Example of coins that have been used as a meidum of exchange include gold, silver, copper, bronze

Commercial Money

Commercial bank money is the money in an economy that is created through debt when commercial banks loan out money. It is the opposite of the terms central bank money, base money and sovereign money, which denote legal tender issued by a central bank or monetary authority.

Another name for it is Bank Deposits. Demand deposits or checkbook money are funds held in demand accounts in commercial banks. These account balances are usually considered money and form the greater part of the narrowly defined money supply of a country. Simply put, these are deposits in the bank that can be withdrawn on demand, without any prior notice.

Digital Money

Digital money, or digital currency is any form or type of money or payment that exists only in electronic form and is primarily managed, stored or exchanged on digital computer systems. Digital money is not physically tangible like a note or a coin.

Examples of digital currencies include cryptocurrencies, virtual currency, stable coins and central bank digital currency.

Representative Money

Representative money is money that consists of token coins, paper money or other physical tokens such as certificates, that can be reliably exchanged for a fixed quantity of a commodity such as gold or silver. The value of representative money stands in direct and fixed relation to the commodity that backs it, while not itself being composed of that commodity.

Limiting Beliefs About Money – Money Mindset

A limiting belief is a thought or state of mind that you think true and stops you from doing certain things. These thoughts or beliefs have been passed on or taught to us at a young age and us we grow up and engage with different schools of thoughts. These beliefs as stated are limiting in that they restrict you or stop you from taking certain actions or erforming tasks and activities which can improve you situaiton or circumstances. In other words they are false beliefs that prevent us from pursuing our goals and desires. Limiting beliefs can come from anyone or anywhere including your parents, family, friends, tribe, nations, culture, associations and society.

Below are a few limiting beliefs we have been taught or come across about money. Hope you cna identify the ones which affect you.

There isn’t enough money to go around.

More money more problems

Money can not buy you happiness

I must save money to get rich

Money is the root of evil

Money is hard to get

If i get rich I will lose my values

I cannot be rich and spiritual

I must have little money to go to heaven

I need money to make money

Wanting more money is greedy

If I have a lot of money I will be robbed

Rich people are selfish

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Steps To Overcome Limiting Beliefs About Money

Now that we have and understanding and identified limiting beliefs about money, it is time to say goodbye to them. No use carrying anymore is there? Time to erase the mistakes, time to sweep the dirt, time to empty the bin.

The good news is that it is possible to change and let go of these old limiting beliefs. There are a number of methods or steps that you can take to overcome limiting beliefs about money and develop a positive money mindset. The time is now. I have mentioned a few below

  1. Identify youy limiting beliefs about money – examine and conduct an honest study about your beliefs about money and discover what is holding you back. I have mentioned a few but you need to examine anf figure out these beliefs as some might be hiding or rooted dep in your subconsious mind. One way is to make a list of 20 or more and keep adding as time goes by.
  2. Try and discover the source – Next step is to try and figure out where you picked up these beliefs. This is to do with cause and effect, if you can find the cause or source you can better understand how to solve the problem. A good example is friends or associations. If you discover that you acquired certain limiting beliefs from your friends or associations you can better decide to keep minimal contact or cut off that firendship or association .
  3. Challenge your limiting beliefs about money – Now is the time to question yourself and discove if these beliefs are true, grounded or necessary. Questions to ask could be: Is this belief helping me to progress towards my goals? how would someone else act in this situations? Am I defending these beliefs without proof or evidence?You should also reflect on instances that these beliefs proved to be incorrect as well.
  4. Change the Negative into Positive Beliefs – This is my favourite part of the process. Now is when you FLIP the game or coin and change the negative beliefs into positive money beliefs. One way is to write the limiting beliefs or type them up then write a positive statement about limiting belief. example: “Money is the root of evil” Positive – ” Money is the root of love”
  5. Create a new positive belief system about money – Once you come up with various positive statement about money, make this you belief and conviction. First you will empty yoursef of the old limiting beliefs then fill your mind and hear with positive feelings about money. This might take a while as you have developed habits over the years which are established but with consistency and strong desire you will be able to change your beliefs if you persist. They sya it takes 21 days to form a new beleif or habit so be consistent.
  6. Practice and develop new behaviours and habits – The final or last step is to put into practice what you have learned and are hoping to develop. There ae exercises and behaviours you should pracice regularly if not daily to build up or develop. Some inlcude positive self talk, avoiding certain people, places or associations, writing doen your goals daily, practie positive money habits and much more. To be honest this is an ongoing step in that it is not final as you should keep on practising and implementing these new behaviours. Reason why is the moment you feel you know enough or you become too confident you will stop practising and might fall back into old habits. This is coming from my experience. It is like a garden: the moment you stop tending or gardening the weeds and grass will grow again withut invitation or fertiliser. HINT HINT??. Money Mindset

How To Develop a Positive Money Mindset

When it comes to achieving your personal and business goals, money tends to be a great focus on measuring success. The money mindset is essentially your attitude to cash, so developing a positive mindset about money is crucial for overall success and well-being. Brian Tracy

Below are a number of methods you cna implemt to develop a positive money mindset.

Set Financial Goals

Discover what is most important to you and set a target or aim to achive it. Figure out your long term and short term money goals, how much you would ike to earn, how much you would like to invest, how much you would like to save and so forth.

Create a Budget for your Money

Budgeting is a great way to help improve your finances in most cases if not all. A proper budget will enable you to know how much money is comin in, where it is coming from, how much is going out, where it is going to and how much is saved or leftover.

A good rule of thumb to follow is that 50% of your income or earnings should go to bills or expenses. The other 50 can be broken down into groups suuch as 10% saving, 10% education 10% investment 10% Social 10% give away or so forth. It is entirely up to you how you choose the amount but the key is to be consisten and build your finacial muscle or habits.

Let go of Past Financial Mistakes

Correct me if I am wrong but I believe that we haev all made financial mistakes. Yes? No?. Well…The key ois to acknowledge your past mistakes, forgive yourself and move on. Do not beat yurself over the past. Learn from the past and focus on creating a new positive bright financial future.

Practice Gratitude

Gratitude is the attiude of being thankful for all that happens. It is the quality of being thankful; readiness to show appreciation for and to return kindness. Gratitude is the strong feeling towards someone or something. Start practising developing strong feelings towards money and be grateful for that which you have and is yet to come.

Follow Successful Money People

You are the sum of the people who you surround yourself withSurround yourself with positive Money mindset people. You are the sum of the people who you hang out with, learn from or surround yourself with. Find individuals or people who have played and are winning at the money game. No need to reinvent the wheel. There are numerous people who are succeeding or have succeeded at making money. You cna read their books, watch their videos, be mentored, buy their programs, follow them on social media. Your network is your networth.

Learn About Money

Another great step is to improve your knowledge and understanding of money. There are plenty of guides, articles, books and posts about money on the net today. Technology has made it a lot easier to learn and access knowlegde. You can use search engines, apps, websites, youtube, webinars, influencers, ebooks and much more. To be honest there is no reason as to why you cannot improve youve your knowledge on money in this day and era.

  • Improve your Financial Vocabulary
  • Read Books about money
  • Take courses on finance and money
  • Find a money or finance coach
  • Hire an expert proven financial advisor

NOTE: Be aware of false information and scammers who will try and take your money. Do your diligent research and expert research.

Use Positive Money Affirmations – Money Mindset

An affirmation is a statement that declares something to be true or to exist.

Below are a few money affirmations that you can to build your money muscle and develop positive money talk.

I am the master of my wealth.

Money is my Friend

I embrace new avenues of income.

My bank account is full of money

My income is growing higher and higher.

Money is drawn to me in every moment.

I love making money

I am successful with money.

Money loves my wallet

Every day is a fresh opportunity to earn more money.

I attract money happily in my life.

Money comes to me easily and effortlessly

I am money rich and properous

Wealth constantly flows into my life.

Money comes to me from different channels

I attract wealth to me from all directions.

I am capable of managing large sums of money.

I make wise financial decisions and trust my process.

Positive Money Mindset Quotes

“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.”

Robert Kiyosaki

“People say that money is not the key to happiness, but I always figured if you have enough money, you can have a key made.”

Joan rivers

 “You must gain control over your money or the lack of it will forever control you.”

Dave Ramsey

“Making money isn’t hard in itself… What’s hard is to earn it doing something worth devoting one’s life to.”

Carlos Ruiz Zafón

“Money grows on the tree of persistence.”

Japanese Proverb

“If you wish to get rich, save what you get. A fool can earn money; but it takes a wise man to save and dispose of it to his own advantage.”

Brigham Young

“The best thing money can buy is financial freedom.”

Rob Berger

“A budget is telling your money where to go instead of wondering where it went.” – Dave Ramsey

Dave Ramsey

“Money is a guarantee that we may have what we want in the future. Though we need nothing at the moment it insures the possibility of satisfying a new desire when it arises.”


Summary of Money mindset

Hope you enjoyed this article on Money Mindset. I hope you have adequate knowledge to start or continue your money mindset journey. Money is imortant and I hope you make enough to enjoy the good times and the bad times.

Having the right money mindset is essential for achieving financial freedom. Money gives you the power to pursue your dreams and live the life you want. If you want to learn more about how to change your money mindset, check out our other Mindset Pages. We can help you make the shift from a scarcity mindset to an abundance mentality. Leave a comment below if you have any questions or would like some advice on changing your relationship with money.

Be consistent with your actions and behaviour, time will tell and if you keep on persisting you will get there.

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