Grow your mind and your money: How to develop a growth mindset
People with growth mindsets believe you can grow, learn and achieve anything with the right effort.
There is one thing that sets successful individuals apart from other people. It’s not the content of their bank account. It’s their mindset. But how can mindset play into someone’s success? Here’s how embracing growth can keep you earning and learning until the end of your days.
Fixed and growth mindsets
Fixed mindsets: People with fixed mindsets believe that your intelligence, capabilities and opportunities can’t be changed. With a fixed mindset, you are who you are and there’s nothing you can do about it.
Growth mindsets: People with growth mindsets believe you can grow, learn and achieve anything with the right effort. They believe this mentality is key to lasting and meaningful impact in both work and personal life.
The words we use to describe ourselves to other people are important. If you talk negatively about your ability to manage your finances or improve your income, that not only reinforces your own lack of confidence but also causes other people to adopt that view.
That’s why you should always focus on positivity. A positive outlook doesn't place limits on your self-perception and actively engages other people. An easy way to do this is to take a self-damning belief you hold, such as “I don’t earn enough money” and add “yet.” This simple word transforms a belief that you are destined for a low-income existence and acknowledges that you are capable of improvement.
Learn from failure
It might sound like a paradox but the world’s most successful people learn to love failure. Failure is the best learning opportunity you can get. It’s simply the world giving you your own personal feedback in real time.
People with a growth mindset look at their failures objectively, learn and move on stronger than they were before. That’s why, instead of harbouring an unrealistic belief that you can achieve financial perfection on your first attempt, you should embrace each failure as part of the journey. Failure not only teaches you about yourself and your relationship to money but also helps to build emotional resilience that will help in all areas of your life.
Seek out small challenges
Any challenge you overcome shows that you are capable of learning and achieving your goals. This adds strength to your character and builds the confidence you need to shape your financial future.
For some people, the challenge could be summoning up the courage to make the initial assessment of your finances. For others, it might be examining your strategy during a growth plateau to see if you need to take a few steps back and approach your goal from a new angle.
Change begins today
The tricky part of creating change is that your dreams always start tomorrow, but the work has to begin today. That’s why you should always ask yourself what you can do today to make your financial dreams a reality.
The urgency of the word ‘today’ encourages immediate behavioural change and helps you to maintain momentum that will keep you moving towards your goals. Small changes you could make include trimming your budget to save an extra €50 per week, setting aside 20 minutes per day to improve your financial knowledge or even making your first investment, no matter how small.
Developing a growth mindset is a crucial tool for anyone that wants to grow their wealth and build their financial future. Changing the way you think is tricky at first and harder when you realise that the end goal is not chasing a sudden increase in wealth but embracing a life-long process. Despite this, developing a growth mindset is one of the most fulfilling ways to create a lasting impact on both your personal and financial life.