How to develop a money mindset that aligns with your goals

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Financial goals are essential. Setting them will help you to obtain the things you want out of life as well as live the lifestyle you desire, both during your working years and in your retirement. But obtaining these goals isn't always easy unless you develop a money mindset that aligns and drives you to these goals. So how do you create this mindset to give you the ideal chance of obtaining your financial goals?

Determine your values

The easiest way to be confident with your financial goals is to align your spending habits with your values. This will allow you to better stick to your spending habits. So to start, you will need to determine the values that are important to you. Ask yourself, what do you value most, your family, your freedom, your security, or your health? In what order do you place these priorities? 

Once you have established these values, you need to spend your money in a way that correlates with these values. For example, if your family is most important, you may want to focus on saving for your children's future education, instead of spending the money on expensive clothing or take out. 

Determine what you need to do to work toward your goals

Once you have established your goals and determined what you value most in your life, you will want to make a plan to pursue those goals. Want to be able to travel during your retirement? Come up with ways to increase your retirement savings. Invest more in your employer-sponsored account. Cut back on spending that is not necessary. Learn how to develop and manage a financial portfolio that may help you to address your goals. 

Start small

Changing your money mindset involves changing the way you think about money and spending it. But making large changes quickly will rarely work over the long term and may act as a deterrent, causing you to give up on your goals before you have a chance to obtain them. After you have determined the changes that you need to make, implement one change each month. That way, you will have time to get used to the small change and how they affect you, without feeling overwhelmed. The changes should be simple such as tracking your spending for the month or opening a retirement savings account.

Follow the tips above to change your money mindset and get your head in a better place which may make your future financial goals seem easier to obtain. 

Important disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.

The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal advisor.

LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

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Sources

https://www.iwillteachyoutoberich.com/psychology-of-money/

https://www.ruleoneinvesting.com/blog/personal-development/4-valuable-tips-for-a-healthy-money-mindset

https://lauradadams.com/money-mindset-tips-tools-for-financial-success

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General Disclosures

The opinions and views in this blog post are those of the authors, and are not intended to provide specific advice or recommendations for any individual. Please consult professional advisors with regard to your individual situation.