4 Money Mindset Shifts From Jason Drees That Pay Off In The Long Run

Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We earn a commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners.

When it comes to managing finances, general advice says we should budget out for expenses and save the rest for a rainy day. This money mindset ensures we’ll always have enough cash for the things we need as well as the things that matter to us most.

But does this “playing it safe” approach we’ve been told about for so long really help us reach our financial goals? Sometimes rewiring our financial mindset to be less limiting can help us better achieve success, argues business coach Jason Drees.

“We tend to focus on the past… setbacks, failures and missteps, and budget with the belief that those things will happen again,” Drees says. “When we remove these beliefs from our planning, we open the door to greater financial opportunity.”

With April being Financial Literacy Month, Select spoke to Drees, author of the upcoming book, “Do the Impossible: Unlock Your Full Potential with the Power of Mindset,” about four of his money mindset shifts that pay off in the long run.

Subscribe to the Select Newsletter!

Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.

1. Stop “saving” your money

Marcus by Goldman Sachs High Yield Online Savings

Goldman Sachs Bank USA is a Member FDIC.

  • Annual Percentage Yield (APY)

  • Minimum balance

    None to open; $1 to earn interest

  • Monthly fee

  • Maximum transactions

    Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D

  • Excessive transactions fee

  • Overdraft fees

  • Offer checking account?

  • Offer ATM card?

For starters, this may just look like putting your money into a high-yield savings account where you simply earn more interest than with a traditional savings account — and with no additional strings attached. One top high-yield savings account to consider is Marcus by Goldman Sachs High Yield Online Savings, which offers no fees whatsoever and easy mobile access, making it the most straightforward savings account to use when all you want to do is grow your money with zero conditions. Other solid options from big banks include the American Express® High Yield Savings Account and the Barclays Online Savings account.

Keep in mind, however, that there is such a thing as having too much money in your high-yield savings account. With rising inflation, you’re not keeping up with the cost of living so in the long run, your cash loses its value and purchasing power. One solution is to maximize the amount of money you can earn by simultaneously putting some of it into the stock market.

Luckily, these days you don’t need to be a market guru to invest. Consider using robo-advisors, which are low-cost software platforms that use computer algorithms and data to invest on your behalf. You don’t have to raise a finger since robo-advisors automatically rebalance your portfolio from time to time based on factors like your risk tolerance and market conditions, among others. Some of our favorites include Betterment, Wealthfront or monthly membership services such as Ellevest.

Betterment

On Betterment’s secure site

  • Minimum deposit and balance

    Minimum deposit and balance requirements may vary depending on the investment vehicle selected. For Betterment Digital Investing, $0 minimum balance; Premium Investing requires a $100,000 minimum balance

  • Fees

    Fees may vary depending on the investment vehicle selected. For Betterment Digital Investing, 0.25% of your fund balance as an annual account fee; Premium Investing has a 0.40% annual fee

  • Bonus

    Up to one year of free management service with a qualifying deposit within 45 days of signup. Valid only for new individual investment accounts with Betterment LLC

  • Investment vehicles

  • Investment options

    Stocks, bonds, ETFs and cash

  • Educational resources

    Betterment RetireGuide™ helps users plan for retirement

2. Break through your financial comfort zone

Many people live in what Drees defines as a financial comfort zone, which is largely based on what their parents earned. But what your parents earned when they were raising you versus what you can potentially earn today are two drastically different things. Drees argues that by imposing these limitations on ourselves, we can end up subconsciously sabotaging opportunities to grow and out-earn our parents.

The first step in breaking through your financial comfort zone is to recognize this very pattern. Drees then suggests shifting your mindset and beliefs around money, thinking instead that money is not the root of all evil but a good thing that brings you more time, resources and choices. This may also entail believing that your family will still love and accept you even if you earn more.

“When you’re growing, there’s going to be a little discomfort,” Drees says. “There’s going to be a feeling of growth and expansion. When you lean into that discomfort as you expand, then you normalize that new level.”

3. Develop a “rich person mindset”

4. Determine your “financial freedom” numbers

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.