money mindset
changing your money Mindset
Changing your money mindset isn’t about thinking positively, it’s about thinking practically and asking smarter questions before you spend.
These simple shifts can help you see your money more clearly and make decisions that feel right for your goals.
See the Real Value of Your Money
Work out your hourly rate after tax
Find out what you actually earn for each hour you work. Then, before buying something, ask yourself: How many hours would I need to work to pay for this?
It’s a simple but powerful way to decide whether that purchase really feels worth it.
Look at the full cost, not just the monthly payment
“Buy now, pay later” offers can look tempting but often you’re just borrowing from your future self. Always think about the total cost over time, not just the short-term payment.
Ask: “Can I actually afford this?”
If you can pay for something in full today without it affecting your essential bills or savings, then you can truly afford it.
Ask: “Is it worth it?”
Even if you can afford it, consider whether it’s the best use of your money right now. Financial freedom often comes from saying “no” to things that don’t really add value to your life.
Challenge Your Old Beliefs
We all have stories we tell ourselves about money:
“I’ll never be good with money.”
“I deserve this even if I can’t afford it.”
“Everyone has debt; it’s just normal.”
Ask yourself: Are these beliefs helping me, or holding me back?
Once you start questioning them, you can begin to rewrite your own money story
Keep Learning
The more you understand about money, budgeting, saving, and eventually investing, the more confident you’ll feel about your decisions.
Keep learning as soon as you’re in a strong position to do so, and your mindset will naturally grow alongside your finances.
You Can’t Out-Earn a Poor Plan
Why Mindset Beats Extra Income Every Time
When people first decide to turn their finances around, the first thought is usually:
“I just need to make more money.”
It makes sense on the surface, if you earn more, you can pay off debt quicker, save more, invest more, and finally live the life you want.
But here’s the truth: you can’t out-earn a poor plan.
If your financial habits aren’t right, no amount of extra income will save you. In fact, it can make things worse.
The Trap of Thinking More Money Will Fix Everything
There’s nothing wrong with wanting to earn more as long as it’s backed by a solid plan.
If you haven’t fixed your habits, that extra income (or even a pay rise) will simply disappear the same way your current income does.
Without a plan, more money just amplifies the same spending patterns.
Why Budgeting and Mindset Come First
Extra income is powerful but only when your foundation is strong.
If you’re setting aside savings each month only to dip back into them again and again, that’s a sign your budget needs adjusting.
Fix this first, then focus on earning more.
When budgeting, habits, and mindset come first, every extra pound you earn becomes a stepping stone toward freedom, not another reason to spend.
Just remember: there’s a reason so many lottery winners go broke after a few years.
Money magnifies habits… it doesn’t replace them.
Do a Job Loss Stress Test
What would happen if you or your partner suddenly lost your job?
It’s not a pleasant thought but running a quick “job loss stress test” can give you peace of mind and help you spot weak points in your finances before anything happens.
Step 1: Work Out Your Monthly Essentials
Add up the cost of everything you must pay to keep life running:
Rent or mortgage
Utilities (gas, electricity, water)
Food and groceries
Transport or car costs
Minimum debt repayments
Insurance
Write this number down and call it “Bare Minimum Expenses.”
Step 2: Add Up Your Safety Net
Next, calculate how much you already have available if income stopped:
Emergency savings
Easy-to-access cash
Any income support, benefits, redundancy pay, or partner’s income
Write this number down and call it “Safety Net.”
Step 3: Run the Test
Divide your Safety Net by your Bare Minimum Expenses.
Example:
Safety Net = £3,000
Bare Minimum Expenses = £1,000/month
Stress Test Result = 3 months before money runs out.
Step 4: What the Result Tells You
0–1 Month = Very vulnerable and you’d struggle quickly.
2–3 Months = Some breathing space, but risky.
4–6 Months = A solid safety net.
6+ Months = Excellent resilience.
Step 5: Next Actions
If your result looks weak, consider what steps could strengthen your position:
Build or top up an emergency fund
Review subscriptions and spending to free up extra cash
Learn about income protection insurance (especially if you have dependants)
Why It Matters
Running a quick “what if” plan helps you prepare emotionally and financially for unexpected changes.
It’s not about fear, it’s about control.
Having a plan gives you peace of mind and extra motivation to stay debt-free and build your emergency fund.
Stop Comparing Yourself To Others
Social media is full of people showing off amazing holidays, new cars, dream homes, and “perfect” lives.
It’s easy to start thinking everyone is doing better than you but remember, you’re only seeing the highlights, not the full picture.
Behind the scenes, many people are quietly struggling with debt, financial stress, or money mistakes you’ll never see on Instagram.
Focus on Your Own Financial Reality
Every single person is on their own financial journey with different incomes, priorities, and responsibilities.
Don’t let your current situation affect your mental health or make you feel “behind.”
Some people will clear their debts in a year, others may take five. That doesn’t make one person more successful than the other. What matters is you’re moving forward.
A Simple Truth
Some people will have:
Family help
Higher incomes
Inheritance
Fewer responsibilities
They’ll naturally have more money to play with and that’s okay.
Smile, accept it, and focus on your own path.
Remember
Your progress is personal.
Comparison destroys gratitude and focus.
Keep your eyes on your journey… look forward, not sideways.
impulse buying
Do you find impulse buying is one of your downfalls?
Think back over the years how many items have you bought that ended up being a waste of money?
Before buying, ask yourself:
What use will I have for this in a few weeks or months?
Would I still want this if it wasn’t on offer?
Am I buying this out of emotion or genuine need?
For bigger financial decisions, sleep on it.
Delaying gratification gives your brain space to think clearly instead of emotionally.
If you still want it the next day, then it might be worth considering.
getting A Bargain
Sales are designed to make you spend, not save.
If you weren’t planning to buy that £300 item before it was reduced to £45, you haven’t “saved” £255, you’ve spent £45 you didn’t intend to.
To stay in control:
Include a realistic clothing or treat allowance in your budget.
Unsubscribe from marketing emails and unfollow brands to lower temptation.
Ask yourself: Would I buy this at full price? If not, walk away.
buy cheap and buy twice
You’ve probably heard the saying before “Buy cheap, buy twice.”
It’s true that cheap, low-quality items can cost more in the long run if they break or need replacing.
However, that doesn’t mean expensive always equals better.
When deciding what to buy:
Weigh up the brand’s reputation and product reviews.
Invest wisely in quality items that genuinely last.
Don’t overspend just for a logo or image.
While paying off debt, you’ll likely need to choose the cheapest or most basic options and that’s fine.
Once you’re back in control of your finances, you’ll have more flexibility to balance value and quality.
Being honest
This isn’t talked about enough.
One of the hardest parts of getting out of debt or sticking to a budget, isn’t the numbers… it’s people.
Saying “I can’t afford that right now” can feel awkward, embarrassing, or like you’re letting your friends down.
But here’s why being honest matters:
It Protects Your Progress
A single night out can undo a week of careful budgeting and push you further from your goals.
Being honest with others helps you stay true to your plan and protect the effort you’ve already put in.
Good Friends Understand
Often, the fear is worse than the reality.
You might find your friends feel the same way, but were also too nervous to admit it.
Honesty can create understanding and sometimes even solidarity.
You Can Suggest Lower-Cost Alternatives
Friendship doesn’t have to be expensive. Try suggesting:
A movie night at home instead of the cinema
A bring-your-own picnic in the park
Coffee instead of cocktails
A potluck dinner instead of a restaurant meal
You’ll still enjoy quality time together just without the financial pressure.
It Builds Self-Respect
Saying “I can’t afford that right now” isn’t a sign of weakness, it’s a sign of strength.
It shows you have a plan, discipline, and the courage to put your long-term wellbeing first.
Friendship isn’t about how much you spend.
It’s about being present, honest, and building real connections.
avoid Lifestyle Creep
Lifestyle creep happens when your spending increases as soon as your income does.
You get a pay rise, and before you know it, you’re upgrading your car, eating out more often, or buying things you once considered luxuries.
If you’re fortunate enough to earn more, try putting a percentage of that increase straight into savings or a long-term financial goal.
That way, you’ll avoid getting used to spending it and you’ll never miss the money.
It’s much harder to downgrade your lifestyle once you’ve upgraded it.
So protect your progress by keeping your expenses steady, even as your income grows.
Keeping Up with the Joneses
We’ve all felt it, that quiet pressure to spend money just because everyone else seems to be doing it.
A neighbour gets a new car, a colleague goes on luxury holidays, or friends are always eating out and suddenly your own lifestyle feels “behind.”
This is called keeping up with the Joneses, and it’s one of the fastest ways to derail your financial goals.
Why It’s Dangerous
You spend money you don’t have to appear successful
Debt grows while savings shrink
The cycle never ends, there will always be someone with more.
How to Break Free
Remember: most people don’t share their financial struggles appearances can be deceiving
Focus on your goals: clearing debt, saving, and building security
Celebrate progress, not possessions
Surround yourself with people who support your journey, not those who pressure you to overspend.
The Real Goal
True financial freedom doesn’t come from matching what others have, it comes from building a life that fits your values and priorities.
Investing before paying debt?
“Can I just invest money instead of paying off bad debt?”
The short answer is yes, you can… but think of paying off bad debt as your first investment.
It’s tempting to jump straight into investing. The idea of growing your money is exciting, and with social media full of success stories, it’s easy to feel like you’re missing out.
But if you still have debt, it’s worth pausing to think carefully before diving in.
Why Paying Off Debt First Usually Makes Sense
Guaranteed Return:
If your credit card charges 20% interest, paying it off is the same as earning a guaranteed 20% return on your money.
Very few investments can reliably beat that.
Reduced Risk:
Investments can go up or down, there are no guarantees.
Debt, on the other hand, grows automatically until it’s repaid.
Carrying debt while investing can feel like running two marathons at once.
Becoming debt-free gives you breathing room before taking on investment risks.
The Smarter Sequence
For most people, paying off debt before investing is the smartest path.
Think of it as building a strong foundation, once it’s solid, then you can confidently start building wealth on top.
That said, learning about investing while you’re paying off debt is a great idea.
By the time you’re debt-free, you’ll already know how to hit the ground running.
The way people handle their money
Everyone sees and manages money differently.
Here are some common “money archetypes” you’ll spot each with their own strengths and challenges.
Most people shift between them at different stages of life.
1. The Dreamer
Mindset: “It’ll work out somehow.”
Loves the idea of wealth but rarely takes practical steps to achieve it. Often talks about “one day” without a clear plan.
Strength: Optimistic, creative, often entrepreneurial.
Weakness: Lacks discipline, usually unprepared for financial setbacks.
2. The Struggler
Mindset: “I’ll never get ahead.”
Constantly firefighting, living paycheck to paycheck and weighed down by debt.
Strength: Incredibly resilient and resourceful.
Weakness: Can slip into a “victim mindset,” making it hard to plan for the future.
3. The Spender
Mindset: “You only live once.”
Loves experiences, gadgets, holidays, and meals out, often using credit to fund the lifestyle.
Strength: Enjoys life and is generous with others.
Weakness: Sacrifices long-term security for short-term pleasure.
4. The Saver
Mindset: “Security first.”
Avoids risk, prefers keeping money in cash, and dislikes debt.
Strength: Disciplined, organised, and rarely in financial trouble.
Weakness: Can be overly cautious and miss out on long-term growth opportunities.
5. The Planner
Mindset: “Control the controllables.”
Budgets, tracks spending, and sets clear goals. Makes thoughtful, deliberate money choices.
Strength: Balanced, resilient, and well-prepared.
Weakness: Can overthink or fall into “analysis paralysis.”
6. The Builder
Mindset: “I’ll grow wealth for the future.”
Focuses on investing, compounding, and creating financial freedom.
Strength: Strategic and long-term focused.
Weakness: May sacrifice present enjoyment for future gains.
Which One Are You?
Understanding your money mindset helps you see your strengths and blind spots.
Once you know how you naturally handle money, you can make small changes that lead to big progress over time.
“You only live once”.. but so does your money
We’ve all said it:
“I deserve this.”
“You only live once.”
“It’s just one night out… one weekend… one new thing.”
And it’s true… life is short.
But here’s the thing: your money has to live as long as you do.
The Problem With YOLO Spending
There’s nothing wrong with enjoying life.
But when “YOLO” becomes the reason to ignore your budget, avoid saving, or delay paying off debt, it can cost you more than just money:
Stress and anxiety when bills arrive
Guilt after impulse purchases
Regret when you can’t afford something important later
Short-term pleasure shouldn’t come at the expense of long-term peace.
On the Flip Side: YOLO Responsibly
You only live once, so make that life debt-free, stress-free, and aligned with your values. Try:
Budgeting for joy
Set aside money for fun without sabotaging your goals
Asking: “Will this make me happy next week, or just for 5 minutes?”
Defining your version of a rich life
One built on freedom, not stuff.
Try the “Pause + Purpose” Check
Before spending on something YOLO-style, pause and ask yourself:
Do I really want this or do I just want a feeling?
Will Future Me thank me for this?
Can I enjoy life and still stick to my budget?
You really do only live once that’s exactly why your money matters.
Use it wisely, spend it intentionally, and build a life that’s not just lived, but loved.
It’s all about finding the right balance… protecting your future self while still enjoying the ride.
Disclaimer
The content on this website is for educational purposes only and does not constitute personal financial advice. Financial rules, tax laws, and market conditions can change, and outcomes will vary depending on your circumstances.
Before making any financial decisions about savings, pensions, investments, loans, or business ventures, you should seek independent professional advice. Past performance is not a guarantee of future results.
Links to third-party websites are for convenience and educational purposes only; we do not endorse or take responsibility for their content.
