Build a Growth Mindset for Your Money

Quick Look

  • By now, you’ve completed the tasks in Foundations and Security. You’ve built a strong base of financial health.
  • From here, you have the power to grow.
  • Now, you’ll focus on how to increase your emergency fund, pay off medium interest debt, and put an eye toward your long-term savings.

Grow Your Mind, Grow Your Money

In the Foundations and Security tiers, you focused your efforts on your immediate needs, paying off high-interest debt that had the potential to pull you back, and saving just enough to build some meaningful security. In a sense, you were focused on more immediate needs. But in the Growth phase, your job is to use your knowledge and financial momentum to accelerate toward your longer-term goals.

You’ve built up solid financial strength. Now that you’re in the Growth tier you’re ready to break free and accelerate!

In this stage your emergency fund will grow, you will eliminate your medium-interest debt, and you will start to focus on your future with long-term savings. By the end of this stage, you will be ready to shift your entire focus to your financial future and your amazing financial potential. But not yet.

Psychological Challenges

The Growth phase – more than any other – will take diligence and determination. In addition to tackling clear financial goals, you may find your personal psychology creates new and surprising challenges. For example, imagine the following thoughts associated with your three most important categories in the Growth phase:

Emergency Fund: I already have an emergency fund…do I really need to grow it?

Medium-interest Debt: Everyone has student loans, car loans, personal loans etc. I make my payments and will pay them off, eventually…isn’t that good enough?

Long-term Savings: Retirement? That’s decades away. Do I really need to contribute now? Sure I’m doing ‘ok’ but it’s not like I’m made of money. Can’t I just focus on paying off debt and have fun with whatever’s left over? 

If those thoughts sound familiar, you’re not alone. These are natural reactions as you make financial progress. But here’s the truth: To move past Growth and get to Independence, you’ll need to mature beyond this type of thinking. If you don’t, it’s possible to flounder in this stage forever. And while you will be better off than some, you will never see your true financial potential.

A clear focus on what you’re building is what will allow you to achieve your goals in the Growth tier.

In this stage, you’re going to build an emergency fund that can withstand more than a couple financial setbacks. You’re going to pay off all medium-interest debt and make it possible to never acquire it again. And you’re going to start the clock on your long-term savings which will give your nest egg time to grow and to flourish.

You Can Still Have Fun!

None of these goals mean you can’t have some fun along the way. But by being measured in your indulgences, you can plan for this fun – whether it’s a night out with your friends or a weekend away with your partner – and still accomplish the goals in Growth. Once you’ve done that, you’ll have opened the doors to a lot more opportunity, and a lot more fun.

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