Understanding Your Financial Set Point
Whether you know it or not we all have a financial set point. This is simply the amount we are comfortable with when it comes to our financial position, and in some cases this amount could actually be a negative number – in other words debt. Really? Yes really. Why would I be comfortable with a negative financial set point? Consciously you may not be, but subconsciously this is where you may be “safe” or at least “surviving”. Most of us have the desire to make more money, have more money and have less money stress, however without really understanding how we are subconsciously programmed many of us are stuck in this outdated programming of “survival” and a pattern of “reacting” over being proactive.
One key component to money mindset coaching is to have an awareness of how our brains work and how our subconscious can sabotage your desired outcomes. An outcome such as increasing your savings and growing your wealth.
So how do we know what our financial set point is? And how can we shift it to reflect the financial position we desire to be in?
First, be aware of your patterns with money. Do you avoid looking at your accounts? Perhaps live pay cycle to pay cycle with nothing to show for it? Or maybe you have a feast and famine cycle where you seem to be doing just fine one moment such as hitting your savings goal to then have your car breakdown or some other expensive disaster occur?
Some of these patterns may be more subtle than just your experiences and spending habits, perhaps it’s more of a feeling around money – more about your money story. Perhaps you were raised to believe money to be the root of all evil or that money doesn’t grow on trees – both common phrases that subconsciously can keep us in more of a scarcity mindset with fear around money.
Our subconscious programming is complex and hard to unpack in a quick blog post, however it is important to begin to question your beliefs and attitudes when it comes to money. The more awareness we have to how we have been programmed to perceive money the more we will be able to shift our beliefs, patterns and behaviours. Awareness is key.
If we begin to see the patterns of past experiences when it comes to money, and reflect on the feelings and emotions that arise when you are looking at your statements or opening bills, we will begin to see the signs.
So how do you improve and increase your financial set point?
There are many things you can do, and there are many tools I use as a money mindset coach – and what we teach in our MMC course to help you first recognise what your financial set point is and the underlying cause (past childhood experience and past traumas relating to money).
- Have an awareness of your relationship with money – recognise your triggers when you avoid, overspend, feel stressed or anxious. Also be aware of your self-talk, as well as dialogue when it comes to money. What type of statements are you making about money? Are they negative?
- Recognise money is a tool that can make your life easy and fun. When you pay your bills think about what it is your paying for and how this has benefited you – for example being grateful that you have electricity, a mobile phone or the internet. By making this simple but effective shift in your perspective you are reprogramming how you feel about money to be a more positive experience.
- Be clear about your financial goals, ensure you are emotionally connected to the outcome when you achieve this goals (see my article on the key to setting successful goals).
- Work through your past financial trauma’s. This can be challenging, but when we hold on to negative emotions such as anger, resentment and frustration we not only are being weighed down energetically but we are also stuck in the past as we have not fully let go. Recognise past mistakes, forgive yourself and others and also look for the lessons and appreciate these experiences for what they were at the time. Your past does not need to determine your future so it is important to release these negative emotions.
- If you have had negative beliefs or stories about money that you now recognise– for example “money doesn’t grow on trees” – you need to find evidence in your life or in others that money is not scares. The message of “money does not grow on trees” subconsciously means there is not enough money to go around. That you need to work hard for it, that it will run out – it’s scarcity programming which can hold you back and keep you in fear. Making financial decisions out of fear is not ideal.
To overcome “limiting beliefs” you need to look for the evidence around that this is just not true. A great example is looking at the financial markets and the trillions of dollars that circulate around the world. Bringing it back into your own life look at the pattern of every pay cycle where you receive income consistently, that money continues to show up in your life and in the lives of friends and colleagues.
It is really important to work through these inner conflicts especially if you have a desire to grow and improve your wealth. If you are wired with a scarcity mindset you will be very challenged when it comes to your personal wealth journey until you shift this belief to one of abundance.
There is so much on this topic, I honestly have just scratched the service. If you to learn more about Money Mindset Coaching to help yourself and others, then go to the link in comments as enrollments are open.