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Money is incredibly important. It may not be able to buy happiness, but it does buy everything else! Unfortunately, schools don’t teach money, and financial literacy isn’t a priority for most people. And when you don’t know enough about money, it’s hard to be financially successful. According to the Annuity, 34 percent of US adults are “just getting by financially”. 

This brings us to the next point – most people don’t have a good money mindset. Your mindset – your beliefs about money – determines your relationship with money. When you have a positive mindset, it’s easier to make money, save up, and be financially healthy. 

Below, Savings and Sangria offers advice to young women in their 20s and 30s changing to a better money mindset: 

Do you have biases that affect financial outcomes?

You likely have many beliefs about money, many of which you inherited from your parents, society, and school. The first step to building a solid mindset is to troubleshoot your existing belief system. Are you allowing biases to color your thinking? Needless to say, biases will hold you back and throw you off until you unlearn them. Some examples: 

  • Money-making potential: Are you overestimating or underestimating your money-making abilities?  
  • Focus on limits overabundance: Do you focus on minimizing spending and getting by over making more money and being a better provider for yourself (or your family)?
  • Gender: Do you think that as a woman you will always make less money than a man, or that a man should be responsible for your financial well-being?  

Business Insider covers several investment biases that also apply to your money mindset. 

Creating a positive money mindset 

After you have done some house cleaning, you could work on adding positive money-related beliefs. Some examples are below: 

  • Committing to being wealthy: If you want to be rich, you have to believe in the goal and commit to it wholeheartedly. It starts with a decision right now. 
  • Letting go of past financial mistakes: Don’t beat yourself up about your past mistakes. Think of them as lessons. You know better now, and you won’t repeat them. 
  • Forming good money habits: Consider building positive money habits like saving a percentage of your income, creating a rainy-day fund, having a financial plan for your life, and adopting the “only buy it if you can afford two (in cash)” mindset.
  • Financial literacy: Knowledge is power. Learning more about money can help you build up wealth. Savings and Sangria provides a variety of powerful wealth-building resources for young women. 

Practical tips for earning more money 

You need to be practical to earn money. Unless you’re really lucky, you won’t become wealthy overnight. It will take hard work, dedication, and perseverance, over a prolonged period. It will likely involve you building up a stable career and growing your skills, among other things. It’s a good idea to create a long-term financial plan for your life, taking into account your current resources and future goals. U.S. News explains how. Don’t hesitate to consult with a professional financial planner. 

Starting your own business can often lead to lasting financial success, especially when you don’t want a traditional career and still want money. You will need some seed money, a plan, and hard work. Forming an LLC can help mitigate some of the risks of doing business – it protects your personal assets from lawsuits. It also offers other advantages like tax benefits, less paperwork, and more flexibility. To form an LLC, you could hire a lawyer or use a formation service, the latter of which is considerably less expensive. States have different regulations around LLCs, check the local rules before moving ahead. 

Practical tips for saving money 

Money saved is money earned. Learning how to save money is just as important as learning how to earn (or spend) it: 

  • Budgeting: Having a solid budget gives you a sense of control and meets all your expenses comfortably, without feeling stressed out.  
  • Minimalism: Everything costs money to buy and maintain. Embracing some minimalism frees up money. 
  • Alternatives to A brands: Anything from an “A” brand, from food to clothes, is more expensive. Alternative “B” brands may be just as good and cheaper to boot. 

Organizing and keeping track of your financial records 

You have to keep an eye on your financial situation – your income, losses, savings, investments, taxes, and everything else. It’s important for identifying wealth-building opportunities and troubleshooting problems. Consider organizing your records, keeping them up-to-date, and making sure they’re easy to access. You can use online tools for this – it’s very convenient to manage and store financial documents in PDF, for instance. You can convert files from many different forms to PDFs. This will help convert to a PDF for free—just drag and drop files into the tool. 

Earning a degree online could help you move to a better career 

Sometimes you have to invest in yourself to make more money. For instance, earning a degree could help you advance in your job or move to a new career for more income. With an online degree, you could work full-time while still keeping up with your studies. For example, if you pursue a degree in education, you can learn about instructional practice and learner development, along with knowledge in particular subjects if you want to be a teacher. You may consider this online program. 

Conclusion

At its core, money is energy, and you’re investing your energy to make money. For the best long-term results, consider how you’re spending your energy right now. Are you investing your time and efforts wisely? For instance, starting a business now or going to online school may be challenging, but will set you up for long-term wealth.   

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