4 Steps to Tidy Up Your Money Mindset

4 min read
happy smiling woman wearing sunglasses

A full-fledged, decluttering movement is sweeping the nation. People are systematically examining each possession they have, asking themselves if it sparks joy in their hearts, and letting go of anything that brings them down or holds them back in any way.

Purging the physical clutter in your home has transformed an exhaustive slog to a nearly reverent time in which you honor and thank the items you’ve let into your life. It’s a revolutionary approach to tidying up your space and coming up with creative ways to pay off debt. And the same approach is perfect for tidying up your money mindset and making financial self care a priority.

How to tidy up your money mindset

Think about it: Over the years, your brain has absorbed countless ideas and drawn endless conclusions about money. Maybe those thoughts even served a purpose at one time. But it’s likely that you currently have some mental money clutter—including some financial self-talk that’s no longer working for you (or never was).

So let’s take a minute to tidy up your money mindset. Examine each assumption that’s crept into your subconscious and each conclusion you’re making—not only about money but your relationship with it. Does that thought or idea serve a purpose? Does it spark joy? If not, are you ready to thank it and let it go? And are you ready to honor the most valuable elements of your money mindset?

Today, we’re taking a look at some of the most common types of mental clutter people have when it comes to money and debt and asking ourselves, how much debt is normal? And we’re clearing out the psychological barriers and negative self-talk that are keeping you from feeling empowered and pursuing financial health.

You say . . . “My money troubles are all my fault.”

There are countless paths into debt. You lost a job or suffered a medical crisis. A lousy housing market sent you underwater on your mortgage. You, like 70% of your fellow college graduates, took out student loans to fund your education. Or you used credit to finance a lifestyle you weren’t yet able to afford.

Whatever your story, we all have one thing in common when it comes to debt—money shame. Money coach Tammy Lally recently noted that people routinely equate self-worth with net worth. And people in debt often convince themselves they’re “lazy, crazy, or stupid—or just bad with money.”

Naturally, no one wants to talk about money shame. In fact, people are more willing to discuss marriage troubles than financial troubles. But you are definitely not alone. In fact, it’s estimated that 80% of Americans currently owe money toward some form of debt.

Fortunately, there are mind shifts you can make today to beat back your money shame and get closer to living a debt-free life.

Mindshift #1:Take pride in your journey—even if you’re just starting out.

Start with gratitude, an astoundingly powerful force in your financial life. Forbes reports that gratitude not only increases your happiness and health but also is scientifically proven to boost your wealth.

Next, begin talking about your debt. Remember that decluttering your money mindset isn’t a project you have to tackle alone. So don’t be afraid to say to friends, “I can’t afford those expensive concert tickets. Why don’t we hang out at my place this weekend?”

When you start talking about your money without shame, you’ll begin to see it as separate from your identity. And you may even inspire others to open up about their own struggles.

Mindshift #2: Recognize that managing your money is a skill you can acquire.

How often have you told yourself (or other people), “I’m just not good with money”?

Followers of the decluttering trend fervently assert that tidying up is something you learn. Well, it’s the same with money management. Improving your financial health involves educating yourself and getting the tools and systems that you need in place on how to stick to a budget and avoid living paycheck to paycheck. And maybe you simply didn’t have those skills before.

Once you recognize that debt isn’t a personal or lifelong failing, you can see it for what it truly is—a temporary situation that you can fix with the right knowledge and right resources. This new mindset can empower you to take action to improve your money skills and seek out the right tools that can help you along the way.

You say . . . “I am terrified of messing up my money.”

Fear—especially money fear—can be paralyzing. Just as you’re afraid to peer into your disorganized attic or basement, you might be afraid to really look at your debt. You’re petrified by what you might find. And you’re terrified of making the wrong money moves . . . so you may end up doing nothing to improve your financial health.

Mindshift #3: Embrace your reality.

When you organize a drawer, the first thing you do is dump everything out where you can see it. Likewise, when you look at everything in your financial story—the good, the bad, and the ugly—you’re no longer left wondering what you don’t know and assuming the worst. When you can see the boundaries of your money troubles, the problem becomes finite. And finite problems—even big ones—can be conquered. One. Step. At. A. Time.

On top of that, there’s a profound sense of empowerment that you get from understanding where you are compared to where you want to be. Knowledge is power, after all. Suddenly, you’re not a lost cause. You’re simply at the beginning of an incredible journey.

Mindshift #4: Create endless opportunities for success.

The best way to build your confidence with money is to start racking up every single win you can and avoid poor financial health. Even the tiniest success can give you enough momentum to hit your next target, then your next one, and so on.

You wouldn’t decide to purge your entire house in a day. You’d start with your purse, a drawer, or a closet. In the same way, target one tiny area of your finances you’re ready to tackle. (Wallet Hack offers a great list of quick & easy financial wins to get you started.)

Start with the unintimidating tasks. Begin telling yourself, “I can do that!” and build momentum. As your confidence and skillset grows, you’ll find yourself embracing strength and positivity that you’ll welcome into your newly tidy money mindset. And you’ll thank yourself for decluttering your psychological barriers and creating order in your financial life.

If you’re ready to shift your money mindset and explore a new way to conquer debt, we can help you get there. 

Check Your Rate

You May Also Like

Related Resource Center
Soft inquiries won’t impact your credit scores, and hard inquiries can hurt your scores slightly. Here's what you need to know.
Oct 9, 2023
6 min read
woman on mobile phone image
Having a money plan in place before you turn in your resignation can make the transition smoother. Learn ways to prepare your finances before you go.
Sep 4, 2023
5 min read
Young man relaxing in an orange hammock by a misty lake holding a cup of coffee, looking at laptop on his lap.
Take control of your money and personal wellbeing with tips to recognize burnout and restore your physical, financial, and emotional health.
Aug 7, 2023
6 min read
Woman in pink blazer sitting on ground with laptop in lap next to young girl looking at documents
With six in 10 U.S. consumers living paycheck to paycheck, could budgeting, saving, debt management, or side income be the antidote?
Jul 25, 2023
5 min read
Paycheck to Paycheck
Your credit score plays a role in nearly every financial move you make. Having a great credit score can save you hundreds (or thousands) of dollars a year through lower interest rates on your credit card accounts, personal loans, moving loans, car loans, or mortgage.
Jul 9, 2023
4 min read
Man in denim button up holding a phone, sitting at table smiling
Related Impact
From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.
Nov 13, 2022
2 min read
blog header stackit 765x430 v1-1
Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals.
Oct 2, 2022
5 min read
LendingClub Rewards Checking Nationally Certified as Trusted, Afforda
Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.
Apr 19, 2022
2 min read
Illustration of large number 4 and letter M made up of colorful, tiny illustrations of ethnically diverse people
In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 
Mar 6, 2022
less than a minute read
Blog-post
LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  
Jan 2, 2022
2 min read
Man in blue button up shirt and glasses smiling
Related FAQ's
We offer several ways for you to make your monthly auto loan payment, so you can choose the method that works best for you. A statement will be mailed to you every month that shows the payment amount and due date.
Nov 29, 2023
less than a minute read
LendingClub provides a year-end statement that summarizes your account activity, including how much interest you’ve earned and information regarding Notes tied to loans that have been charged off.
Jun 7, 2023
less than a minute read
After you submit your application, you'll get an email with instructions for confirming your email address.
Jun 7, 2023
less than a minute read
In some cases, we may need to confirm your employment before your application can be finalized. The fastest way to confirm your employment is to provide your work email address.
Jun 7, 2023
less than a minute read
To process your application, we may need to confirm your income matches what was on your application.
Jun 7, 2023
less than a minute read
Related Glossary
{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.
Sep 6, 2023
4 min read
{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 
Mar 21, 2023
4 min read
{noun} The total annual cost to borrow money, including fees, expressed as a percentage.
Mar 21, 2023
3 min read
A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.
Feb 7, 2023
3 min read
{noun} An interest rate that remains the same for a set time, usually for the life of the loan.
Feb 4, 2023
3 min read
Change Your Money, Change Your Life
Join our monthly newsletter for tools, tips, and insights to improve your financial health.
  

LendingClub Bank and its affiliates (collectively, "LendingClub") do not offer legal, financial, or other professional advice. The content on this page is for informational or advertising purposes only and is not a substitute for individualized professional advice. LendingClub is not affiliated with or making any representation as to the company(ies), services, and/or products referenced. LendingClub is not responsible for the content of third-party website(s), and links to those sites should not be viewed as an endorsement. By clicking links to third-party website(s), users are leaving LendingClub’s website. LendingClub does not represent any third party, including any website user, who enters into a transaction as a result of visiting a third-party website. Privacy and security policies of third-party websites may differ from those of the LendingClub website.

Savings are not guaranteed and depend upon various factors, including but not limited to interest rates, fees, and loan term length.

A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,584 for a term of 36 months, with an interest rate of 10.29% and a 6.00% origination fee of $1,190 for an APR of 14.60%. In this example, the borrower will receive $18,663 and will make 36 monthly payments of $643. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states.

For Personal Loans, APR ranges from 9.57% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of July 11, 2024 and are subject to change without notice.

Checking a rate through us generates a soft credit inquiry on a person’s credit report, which is visible only to that person. A hard credit inquiry, which is visible to that person and others, and which may affect that person’s credit score, only appears on the person’s credit report if and when a loan is issued to the person. Credit eligibility is not guaranteed. APR and other credit terms depend upon credit score and other key financing characteristics, including but not limited to the amount financed, loan term length, and credit usage and history.  

Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. ​Deposit accounts are subject to approval. Only deposit products are FDIC insured.

“LendingClub” and the “LC” symbol are trademarks of LendingClub Bank.

© 2024 LendingClub Bank. All rights reserved.