Create an Abundant Mindset With Your Money

How do we create a more abundant mindset around our finances?

It would be easy to assume that an abundant mindset comes from making more money.

If I make more money, I’ll feel like I have enough.

I’ve worked with clients across a wide range of incomes and net worths, and one pattern shows up again and again: feelings of scarcity around money rarely come from not having enough, it comes from not knowing where their money lives, what it’s for, and what it’s allowed to do.

The good news: You don’t necessarily need to make more money to feel more abundance around your money.

You can do it by getting clear on how much money you have to pay for expenses and understanding your liquidity needs.

Why Liquidity Shapes How You Feel About Money

Liquidity is simply your ability to access money when you need it.

But emotionally, liquidity represents something deeper:

• Safety

• Flexibility

• Freedom

  
  

When people don’t feel liquid enough, they feel:

• Tense about spending

• Hesitant to invest

• Afraid of surprises

• Constantly “on edge” about money

  
  

This can create a scarcity mindset, even for people who are objectively doing very well.

Everyone Has a Different Liquidity Equation

One of the first things I work through with every client is their liquidity needs. This is different for everyone and is affected by:

• Monthly spending relative to income

• How much of their net worth is tied up in illiquid assets

• Their career stability

• Their relationship and emotional history with money

  
  

This combination results in a liquidity equation that answers the question:

How much money can I afford to have in different places for me to feel secure?

So when you have a surprise event, you have enough liquidity to support that need.

Why Saving and Investing Feel Backwards

As a reminder, we’re hard-wired to not be great investors.

From an evolutionary perspective:

• Keeping money in our checking or savings account feels safe

• Investing feels like removing your safety net

  
  

So when you move money out of your checking or savings account and into your investment account, your brain interprets it as running toward danger, even when it’s objectively the way to grow your wealth.

We think we are removing our liquidity or ability to pay for surprise events, since we are locking up or losing money.

However, your investment account can play a big role in your liquidity engine.

The Liquidity Rails That Change Everything

Taking the time to understand your own unique liquidity needs is incredibly important.

Once we understand that, we can create a structure to support those needs. This can lead to a mindset shift, and easier decision making.

This means clearly defining:

• Checking → day-to-day spending and paying off credit cards

• Savings / emergency fund → true short-term security (3-6 months recommended)

• Investment portfolio → how much we are paying into and should be set aside for long-term growth

  
  

I include investment portfolio with your liquidity because we can actually borrow against our investments if we need to.

Your investment portfolio doubles as not just a wealth building engine, but also a liquidity engine.

In many cases, it can be accessed strategically, to pay down payments for a home, private investments, etc.

Knowing you can pay for not just your day-to-day expenses, but also the unexpected ones, creates a world of abundance.

From Scarcity to Abundance

In practice, this begins to shift our mindset from a scarcity mindset, to an abundant mindset.

We can feel more at ease with investing and understand that it isn’t running toward danger after all.

With this structure in place, it helps to remove the fog surrounding your money and reduces anxiety.

Once liquidity rails are in place:

• Spending becomes more intentional

• Investing feels less scary

• Decisions feel easier

  
  

This leads to increased confidence and a better relationship with money.

An example of how this plays out in the mind could be from questions that we all ask ourselves:

• “Am I allowed to spend this?”

• “What if there is an emergency?”

• “Am I on track?”

  
  

To:

• “Does this align with what I value?”

• “How do I want my money to support my life?”

• “How else can we optimize our money to grow?”

  
  

That is the abundant mind in practice.

Structure First, Then Growth

An abundant mindset isn’t created by ignoring reality or forcing optimism.

It’s created by:

• Knowing where your money is

• Knowing your expenses

• Knowing you have a system in place

  
  

Liquidity is the foundation that leads to an abundant mindset.