According to researcher and Stanford Professor, Carol Dweck, there are two mindsets that you can hold: fixed or growth. A person with a fixed mindset believes that talent and ability are predetermined, where as a person with a growth mindset believes that their talent and ability can be developed with time and effort. Consequently, those with a growth mindset desire to "improve themselves," while those with a fixed mindset tend to feel the need to "prove" themselves.
When it comes to managing our money wisely we don’t want to fall victim to a fixed mindset. So, in order to help you develop and maintain a growth money mindset as you start a new year, here is a handy table that can help you avoid some common traps and get on the path to improving your financial health.
I believe most of us desire to be financially responsible with our money, but get lost in the busyness of work, raising a family and taking care of a home. However, if you’re truly focused on developing a growth mindset to improve your financial situation, you need to prioritize what’s important, take responsibility and put in the work. If you get stuck, surround yourself with people that can help you move forward. Many people with a growth mindset lean on their financial planner to educate them on their opportunities and risks so that they can make wise decisions with their money. So, as Dweck says, “What will you choose? A lifetime of proving yourself or a lifetime of improving yourself?”