One of the questions I get a lot from people as a coach is around whether or not people have a good money mindset. Many people think that if they can resonate with concepts like “abundance” than it means they have a good money mindset. And while abundance is a great thing to focus on, that doesn't necessarily mean that you've got a great mindset around money.
Whenever I'm talking about money, I really like to get into the specifics. When I’m coaching my clients, we don't focus on concepts like abundance. Instead, we get down to the nitty-gritty of it and actually talk about the different types of money.
Today want to give you a quick intro into six types of money that I actually focus on.
Later this week I will go into each of these types of money in more detail.
The first type of money is savings. Can you save money? Have you ever been able to save money? And how do you feel when you think about saving money?
The idea of savings might make you feel really good if you have a really good nest egg set aside, but if you've always struggled to save, then you might even feel embarrassed about savings.
The second type of money which can be quite painful for people to talk about is debt. This is because when you're in debt you're obviously making repayments, you've got a principal that you've got to pay off as well, and this can be really crippling both in terms of the actual money that you've got to pay back but also just the feelings around it. And again there might be a lot of shame and embarrassment around being in debt.
The third type of money is around income. This is about whether or not you're happy with the amount of income that you're earning, how you earn that income and how long it lasts you.
If you get paid monthly, does your income last you until the end of the month? or do you find that you're always running out just before the next payday?.
The fourth type of money is income goals. This is different to income because income is more about what you're earning now, whereas income goals relate more to stretch goals that you set for yourself. This could be a target monthly income that you have, it could also be income from a business that you're developing on top of a job, if you're working in a job. This is more about whether you've set income goals before and how you've gone with achieving them. Because there can be a certain stigma and an emotional pull around whether or not you think you can achieve your income goals.
The fifth type is expenses. This is around how you feel about spending money.
'Expenses' is an interesting category because this one tends to hit people who are even making a lot of money.
If you grew in an environment where money was scarce, then you can have a lot of guilt, when it comes to spending money. And you can have all sorts of worry and panic kick in when you go to spend money on something quite significant like a large purchase. So that's a really interesting category to get into.
The final category is toxic money. While this doesn't apply to a lot of people it’s still worth mentioning. Toxic money is basically some form of income or payment but there is some kind of battle or negativity around it. Examples of that could be things like child support, if there's a lot of negative tension between spouses who have now split, also sometimes when people fight over things like will settlements and there are disagreements amongst perhaps siblings or family members.
In my next few videos, I'm going to go into each one of those types of money in more detail. The objective here is for you to think about what your relationship with money is like. I invite you to go through the six types of money and rate yourself on how you think you're doing in each of those areas. If you can give yourself a big tick in all six areas then I would say you have a great money mindset. But if you're struggling in a couple of those or even all of them, then stay tuned.
Comment below and let me know what areas you find most challenging and whether or not you discovered you have a good (or not-so-good) money mindset!
To your success,
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