Blog Personal Finance

Why is it important to invest in yourself and understand your Mindset?

Investing in yourself means taking time to look after yourself, learn something new and continue to develop yourself. Many people sometimes overlook this due to busy schedules, but it is very important to take time to know, understand and develop yourself. In this blog I will be looking at the importance of understanding your mindset as part of investing in yourself.

Mindset is the set of beliefs or assumptions held due to past experiences or knowledge gained. Understanding your mindset helps you to be able to identify your strengths and weakness. This is especially important when dealing with finances. There was a time when I didn’t fully understand my mindset towards finances. I then didn’t know why I couldn’t stick to my budgets, why I was overspending or why I could not achieve any of the financial goals I set. Looking back at my background and reflecting on the way my parents dealt with money helped me to begin to be aware of some of the beliefs and money habits I had. This then led me to understanding more about financial personalities. 

It is important to understand your background or the environment you were raised in because in many cases this shapes some of the decisions that you make. For example, people who were raised in households that did not have a lot of money for essentials, tend to hold on to their money a lot when adults because this brings a sense of security. This is great for saving however, it can hinder them from investing to grow their wealth. 

When I grew tired of constantly failing when it came to my finances I knew something had to change. Reading books helped me to gain confidence as I became aware of the vast potential I had. I began to understand that some of the beliefs I had were actually limiting me from achieving my full potential. I used to believe that preparing a budget was like writing an assignment which has to be perfect and score high marks. Reading more about personal finances helped me understand that budgeting needed to suit my lifestyle and my financial personality. So, if a budget worked for someone it may not necessarily work for me.  

Being aware of my environment and the type of information I consumed was important. Being around people who had similar goals or had already achieved what I wanted to achieve helped me to ask questions about certain areas and it also motivated me. 

It’s important to take time out to know about yourself and increase your knowledge. Here are some questions and areas you can start by focusing on

  • How did people significant to your life deal with money when you were growing up
  • What was the general attitude about money?
  • Do you have a budget?
  • Looking back at your budget or account for the last three months, have you overspent, saved, or invested
  • What are your thoughts on impulse buying, saving and investing? 
  • Are you aware of all the bills you have and do you pay them in a timely manner?

In the next blogs I will be writing more about ways to invest in yourself and understanding your financial personalities.

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