We start losing money before we ever make it, and not because we’re careless, but because no one teaches us how to have a money mindset.

How does that make sense? It’s not because we are reckless or unlucky. The reason is that we don’t know how to think about money in the first place. We’re taught to chase income, but we rarely learn how to manage it once it comes our way.

Here’s an eye-opening stat: 80% of lottery winners go broke within five years. This is not because the money disappears, but because their mindset never changed
These individuals went from struggling to successful, but within a short period, they find themselves back at square one. How does this happen? The truth is simple: earning money is easy when compared to keeping it. Money will always slip through your fingers without the right mindset, no matter how much you bring in, but this can be fixed.

Before that first paycheck hits your bank, you need to train your brain to think like someone who already knows how to handle money. This article does just that. You’ll learn how to set yourself up mentally to make the most of what you earn, thus preparing you for success with your financial mindset.

This is the first of six articles designed to transform your relationship with money. I’ll start by rewiring how you think about money before you earn it, covering financial psychology, habits, and mindset shifts. Next, I’ll tackle saving strategies, from emergency funds to short-term goals, followed by a breakdown of income streams and tax basics. You’ll then learn to spend intentionally, distinguishing needs from wants, before diving into investing fundamentals, no prior wealth required. Finally, I’ll equip you with tools to navigate banks, debt, and financial fine print safely. By the end, you’ll have a complete framework to earn, save, spend, and grow money with confidence.

If you’re ready to break free from the cycle of financial stress and start thinking smarter, stick around.

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The Psychology of a Strong Money Mindset

Before diving deeper, one principle needs to be established. Money isn’t just about numbers. It’s about feelings. In fact, money is far more emotional than it is logical.

From the moment we’re born, we begin absorbing messages about money. Whether it’s from our parents, teachers, or society at large, these messages shape our beliefs. Are you raised to believe that money is a tool for freedom, or are you taught that it’s a source of stress and conflict? Your financial psychology is built from your experiences and the stories you tell yourself.

A lot of us grow up with mental scripts that follow us into adulthood. For some, it’s the belief that “money is evil.” For others, it’s the idea that “I’ll never be rich.” These stories are powerful, and they’re often buried deep in the subconscious, shaping how we approach every financial decision, big or small.

This internal story is a blueprint for our behavior. It doesn’t matter if you have the best investment strategy or a solid job. If you think money is bad or you believe it’s out of your reach, your actions will reflect that mindset. For instance, you might sabotage your own financial success without even realizing it, spending impulsively or avoiding opportunities because your brain is still holding onto old beliefs.

The thing is, our internal narrative often determine our external results. You can work harder, earn more, and even have great financial opportunities, but if your mind isn’t aligned with success, it will be harder to keep the money you earn.

Recognizing these beliefs and replacing them with healthier, more empowering ones is the key to mastering your financial mindset. The good news is that it’s possible to rewrite your financial story and change how you interact with money. Trust me, I have been there, I am doing that.

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Scarcity vs. Abundance Mindset

Okay, so the first step in changing your mindset is realizing this. The way you think about money directly impacts how you interact with it. Your mindset can either trap you in a cycle of fear or propel you toward growth. Let’s break down the difference between a scarcity mindset and an abundance mindset.

A “Scarcity Mindset” is rooted in the belief that there’s never enough to go around. People with this mindset constantly fear losing what they have and often find themselves hoarding resources, whether that’s money, time, or opportunities. This is where I have found myself, and most struggling with money, or inexperienced with it do. They may feel jealousy when others succeed, thinking, “If they win, I lose.” This fear-driven thinking creates a cycle of anxiety and inaction. For example, someone with a scarcity mindset might avoid investing because they’re terrified of losing money, even though the potential for growth is real. Instead of taking risks, they hold tight to what they know, limiting their opportunities.

On the other hand, an Abundance Mindset (Hint: the one you should acquire) is built on the belief that there’s plenty to go around. Those with an abundance mindset see opportunities everywhere and are willing to take calculated risks. They aren’t afraid to share resources or knowledge because they know that doing so doesn’t take away from their own success. Abundance encourages growth, collaboration, and generosity. For example, an entrepreneur with an abundance mindset might partner with others to create something bigger, knowing that collaboration will lead to more opportunities than staying isolated in fear.

Example in Action: Imagine two people given R1,000. The scarcity-minded person might hoard it, fearing loss, or spend it impulsively to “get value now.” The abundance-minded person could invest in a skill (e.g., an online course) or split it between savings and a small, high-reward opportunity (e.g., reselling thrifted items). Over time, the latter approach compounds, not just financially, but in confidence and opportunity recognition. Scarcity focuses on preserving; abundance focuses on multiplying. { Interesting fact: This isn’t just philosophical, neuroimaging studies show scarcity mindset activates the amygdala (fear center), while abundance thinking lights up the prefrontal cortex (planning and creativity). Your brain literally works differently based on which mindset dominates }

Practical steps to shift your mindset:

1. Journaling – Start writing down your thoughts and feelings about money. Identify moments when fear or envy arise and reframe those thoughts. Practice seeing opportunities instead of limitations.
2. Gratitude – Make it a habit to list at least three things you’re grateful for every day. This shifts your focus from scarcity to abundance by training your brain to recognize the positive.
3. Exposure to Different Environments – Surround yourself with people and experiences that challenge your current beliefs about money. Whether that’s reading about wealth creation or talking to people with an abundant mindset, you’ll start to see possibilities you might have missed.

Scarcity builds fear. Abundance builds vision.

Shifting from a scarcity to an abundance mindset doesn’t happen overnight. But with consistent effort, you can start to embrace the belief that there’s plenty of success and opportunity to go around.

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Habits That Shape Wealth Before Income Arrives

Building wealth isn’t just about making money; it’s about the habits you develop before that money even starts flowing. Creating financial habits that shape your wealth in the long run will set you up for success, whether you’re a student or an early-career professional.

Core Habits for Building Wealth Before Income Arrives

1. Tracking Your Spending
   It’s easy to lose track of where your money goes, especially when you’re not earning a lot. But tracking your spending is essential, even before you have a steady income. Whether you’re using an app or a simple spreadsheet, tracking allows you to see patterns in your habits and identify areas where you can improve. Knowing how much you spend on things like food, entertainment, and subscriptions helps you make more intentional decisions in the future.
2. Delayed Gratification
   One of the most important skills for building wealth is being able to delay gratification. In a world where instant access to purchases is the norm, resisting the urge to buy on impulse is critical. Learning to delay gratification might mean prioritizing long-term goals over short-term desires. It’s a habit that will pay off as your income increases and your spending becomes more purposeful.
3. Budgeting Without Income
   A budget isn’t just for people who already have money coming in. If you’re a student or just starting out, you can still practice budgeting with what you have, even if it’s small. By creating a “pre-income” budget, you get used to thinking about where your money will go before it actually arrives. This exercise will make it easier to budget effectively once you have a steady income. It’s all about planning ahead and making sure that you’re prepared when the money comes in.

Tools to Use Early:

• Budgeting Apps: 22seven, Moneysmart, or EverydayMoney can help you track your spending, set limits, and save toward your goals.
• Google Sheets Templates: If you prefer something more customizable, Google Sheets templates can be an excellent option. There are countless free templates available that can help you create a detailed budget with ease.

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How Small, Consistent Actions Compound

The key to building wealth isn’t making huge moves, rather about making small, consistent actions that compound over time. This applies to financial habits too. Reading one finance article a day might seem small, but after a month, you’ve gained 30 new insights that will shift how you view money. Over a year, this can add up to a major transformation in your financial understanding.

Building habits like saving a small percentage of your pocket money or investing a little bit each month might seem insignificant, but it adds up. The consistent action is what creates the momentum you need to grow your wealth. And the earlier you start, the bigger the compound effect will be. Become 1% better. Everyday.

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Build a Mock “Pre-Income” Budget

If you’re a student or someone with limited income, creating a budget based on potential income can be a helpful exercise. Here’s how you might break it down:

1. Income: Estimate how much money you expect to earn once you have a steady income. If you’re a student, this might mean projecting an allowance or part-time job income.
2. Expenses: List out your current expenses like food, transport, entertainment, and savings. Even if your income isn’t fixed, estimate how much each expense will be.
3. Savings Goal: Make it a priority to put aside a small amount for savings, even if it’s just 5-10% of your estimated income.
4. Emergency Fund: Start building a small emergency fund, even if it’s just a few hundred rand. This will help you avoid financial stress when unexpected expenses arise.

Sample Pre-Income Budget:

• Hypothetical Income: R10,000/month (entry-level job).
• Fixed Expenses (50%): R5,000 (rent, transport, utilities).
• Flexible Spending (30%): R3,000 (food, entertainment—track meticulously).
• Savings (15%): R1,500 (high-interest account or micro-investments).
• Learning (5%): R500 (books, courses, or networking events).
  Practicing this split now trains you to prioritize savings before lifestyle inflation kicks in.
• When you start earning, this 50/30/15/5 split will try to rebel. Your brain will whisper, ‘You deserve to upgrade!’, and that’s lifestyle inflation. The trick? Automate savings/investments first, then adjust spending. Your future self will thank you

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Emotional Spending & Dopamine Traps

Our brains are wired to seek rewards. When we buy something new or get a rush of pleasure from spending, our brains release dopamine, the chemical that makes us feel good. This reward system can be a powerful driver of our spending behavior, but it can also lead us down a dangerous path of emotional spending.

How the Brain’s Reward System Works

Dopamine is what motivates us to take action, whether it’s eating a delicious meal, getting a compliment, or buying something we’ve had our eye on. Every time we make a purchase, our brains associate the act of spending with pleasure. It feels good in the moment, but this feeling fades quickly, leading us to crave that rush again. This cycle can create a habit of impulsive spending, driven by the search for that next dopamine hit.

How Ads Exploit Emotional States

Advertisers know exactly how to tap into this. They target our emotions, knowing that we’re more likely to make a purchase when we’re feeling stressed, lonely, or anxious. For example, an ad for a luxury item might show a happy, confident person, leading you to believe that buying the product will make you feel the same way. Emotional ads are designed to trigger the release of dopamine, convincing us to buy things we don’t need. This is why you might find yourself buying a pair of shoes when you’re feeling down or splurging on something unnecessary just because you saw an ad that made you feel good.

Real-World Examples of Emotional Spending

• Revenge Spending: This happens when you make impulsive purchases as a way to “get back” at a situation or emotion. For example, you might buy a new outfit after a bad day at work to make yourself feel better. While it feels satisfying in the short term, it can lead to buyer’s remorse later.
• ‘Treat Yourself’ Culture: This is a popular mindset, where spending becomes a way to reward yourself for enduring the stresses of life. While the occasional treat is fine, it can become a pattern of emotional spending that adds up over time. The problem is that buying things to feel good rarely leads to long-lasting happiness.
• The “Self-Care” Marketing Ploy: Brands rebrand indulgence as “wellness”. Think Starbucks’ “You deserve a latte” or Sephora’s “Treat Yo’ Self” campaigns. A NYU study found that millennials spend 2x more on “small treats” than prior generations, often rationalized as stress relief. But true self-care is funding your future, not fleeting serotonin. Try swapping a R200 coffee habit for a R200 monthly investment: at 8% returns, that’s R35,000 in 10 years, and now that’s a treat. Every time you say ‘I’m the kind of person who treats myself,’ you’re not just spending, you’re rewriting your identity. Replace it with: ‘I’m the kind of person who invests in freedom.’ Small shifts in language create big shifts in behavior
• The Tech Trap: Apps like TikTok Shop or Instagram’s checkout feature weaponize dopamine by combining endless scrolling with instant purchases. A study by MIT found that digital “window shopping” activates the nucleus accumbent, the brain’s craving center, more than physical shopping. Every “Add to Cart” click is a micro-hit of dopamine, making spending feel like a game rather than a transaction. Recognizing this can help you disable one-click payments or use apps like Freedom to block shopping sites during emotional highs (e.g., late-night boredom). Platforms like TikTok Shop optimize for ‘time to dopamine’, the 2-second gap between seeing an item and clicking ‘Buy Now’ is shorter than the 5 seconds it takes to feel regret. It’s not willpower you lack; it’s a system designed to bypass rational thought.
• Here’s the hack: When tempted, say aloud, ‘This is a dopamine trap.’

Simple Tools to Break the Cycle

1. The 24-Hour Delay Rule: If you feel the urge to make an emotional purchase, delay it by 24 hours. This simple rule gives you time to assess whether the purchase is truly necessary or if it’s just a temporary emotional reaction.
2. Unfollow Shopping Pages: Social media is filled with ads designed to trigger spending. Unfollowing shopping pages and limiting your exposure to ads can reduce the temptation to buy on impulse.
3. Mindful Spending: Take a moment to reflect on each purchase. Ask yourself if it aligns with your goals and values. Being mindful of your spending helps you avoid emotional triggers and make more intentional decisions.

To help curb impulsive spending, consider using tools like budgeting apps or browser blockers. Local apps like 22seven let you track your spending in real time across bank accounts, while browser extensions like StayFocusd or LeechBlock can block online shopping sites, giving you that extra moment of pause before making an unnecessary purchase.

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Reframing Money as a Tool, Not a Goal

For many, money carries a heavy emotional weight. It is tied to feelings of guilt, fear, and even obsession. But the reality is that money is simply a tool, a means to an end, not the end itself.

Remove Guilt, Fear, and Obsession Around Money

One of the first steps in transforming your relationship with money is removing the emotions that come with it. Guilt, fear, and the obsession with accumulating wealth can create a toxic mindset that keeps you from using money in a healthy way. Money should not be something that makes you anxious or ashamed. It should be seen as a tool that helps you achieve your goals.

Money Enables Choices, Not Identity

Money should not define who you are. It is easy to fall into the trap of thinking that having more money will make you more valuable or successful. But your worth is not determined by how much money you have. Instead, think of money as a tool that provides you with options, options to live the life you want, to help others, and to pursue your passions. Once you start viewing money this way, it becomes much easier to make intentional financial decisions.

Thought Experiment: “If Money Wasn’t a Problem, What Would You Build?”

Take a moment and think about this: If money wasn’t an issue, what would you build? What would you create? What impact would you make? This thought experiment helps you see money for what it truly is, a means to create value, not something to be chased for the sake of accumulation. It is about the freedom to pursue what matters most to you, whether that is building a business, traveling the world, or giving back to your community.

Warren Buffett’s Perspective: Even billionaires like Buffett treat money as a “claim check on society’s resources,” not a scorecard. He still lives in the same house he bought in 1958 for $31,500. His wealth lets him allocate capital to businesses he believes in, not buy validation. Similarly, your financial goal shouldn’t be a number, it’s the freedom to wake up and say, “Today, I choose X” (whether X is working, volunteering, or creating). Money’s highest value is removing the word can’t from your vocabulary. Compare this to influencers renting Lamborghinis for Instagram clout. Buffett’s wealth lets him ignore others’ opinions; the ‘flex’ mindset keeps you chasing them. One is freedom. The other is a treadmill. Ask yourself: ‘Am I spending to impress others, or to build real freedom?’ The answer reveals whether money owns you, or you own it.

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What to Do Now. Even If You’re Not Earning Yet

You might be thinking, “I’m not earning yet, so why should I worry about money?” But the reality is, building good financial habits early will pay off big time when you start earning. It’s about setting yourself up for success before the money even starts coming in.

Start a Money Journal

One of the best ways to start shaping your money mindset is by keeping a money journal. This simple habit helps you become more mindful of your spending and savings patterns, even if you’re not making any income yet. Write down your thoughts on money, track your imaginary income and spending, and reflect on your goals. This practice builds awareness and creates a solid foundation for future financial decisions.

Track Imaginary Income/Spending

Even if you don’t have an income yet, pretend you do. Set a budget based on an imaginary salary, such as R10,000 a month. Track your spending, saving, and investing as if the money was real. This exercise helps you develop important habits like budgeting, saving, and being mindful of your financial choices. It’s the perfect way to practice without the pressure of real money.

Learn to Invest with Simulations

You don’t need actual money to start learning about investing. Use online simulations or apps that let you invest with virtual money. These tools allow you to learn the ins and outs of the market without any risk. Understanding how investments work, tracking stock movements, and seeing the potential growth of your money will give you a head start when it’s time to invest for real.

Build Skills with Free Courses

Now is the time to start building valuable skills. There are countless free courses available online that can teach you everything from basic financial literacy to advanced investment strategies.

Not Earning Yet? Start Acting Like You’re Managing R10,000/Month

The key to building wealth is to act like you’re already managing money. Start small, stay consistent, and the habits you form now will help you when you begin earning for real.

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Here’s a quick recap of the key takeaways:

• Money is more emotional than logical: Understanding your financial psychology is crucial for breaking harmful beliefs and setting yourself up for success.
• Money Mindset matters: Shifting from a scarcity mindset to an abundance mindset helps you embrace growth and wise risk-taking.
• Building habits early is key: Tracking, budgeting, and delayed gratification set the foundation for wealth before you even start earning.
• Emotional spending is a trap: Recognize how your brain’s reward system drives impulsive spending and use tools like the 24-hour delay rule to regain control.
• Money is a tool, not a goal: Reframe how you think about money—it’s there to help you create and make choices, not define your worth.
• Start now, even without income: Practice managing money by journaling, tracking imaginary income, and learning investing through simulations.

Mindset work before money arrives is vital. The habits you develop now will carry over when you start earning, putting you ahead of the game.

Building wealth isn’t about having money, it’s about how you think about it. Stay consistent and intentional, and you’ll be on your way to mastering your money mindset.

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Make sure to check out these books I trust. They’ve played a big role in shaping my money mindset:

• The Psychology of Money by Morgan Housel
• Atomic Habits by James Clear

Both are practical, easy to read, and genuinely changed how I think about habits, money, and long-term success.

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Sources used:

Ramsey Solutions explains how to identify and shift limiting money beliefs to adopt an abundance mindset. Link

Paige Brunton shares expert advice on recognizing the habits and thoughts that keep people financially stuck. Link

Marie Forleo outlines six simple mindset shifts that can dramatically improve financial confidence. Link

Brainz Magazine explores how strategic thinking and mindset changes contribute to lasting financial success. Link

The Hell Yeah Group dives into how early experiences influence money beliefs and offers tools to reshape them. Link

Smartest Hustle presents financial mindset strategies tailored for 2025 and the modern wealth-building journey. Link