Conventional financial wisdom often urges us to meticulously track every penny, forego small pleasures like a daily coffee, and hunt for the best deals. But what if this relentless focus on cutting back is actually the wrong approach? According to a leading expert, the real key to saving significant sums – potentially thousands of pounds – lies not in spreadsheets, but in transforming your deepest beliefs about money itself.
The Power of Your Money Mindset
Mindset coach Renee Houtstra, who has guided entrepreneurs and multi-seven-figure earning CEOs, argues that your financial health is dictated more by your internal narrative than by your day-to-day expenditure. In an exclusive discussion, she told the Daily Mail that unconscious patterns formed in childhood, such as hearing "money doesn’t grow on trees" or witnessing financial struggle, can embed a sense of fear, scarcity, or guilt.
"In cognitive behavioural terms, your money mindset is the set of beliefs, emotions and attitudes you hold about wealth and spending - and these unconscious patterns shape how you behave every single day," Houtstra explained. These undercurrents can drive everything from impulsive spending and bill avoidance to sabotaging your own earning potential.
Practical Steps to Financial Transformation
Houtstra provides a clear roadmap for shifting your financial perspective in 2026. The first, crucial step is to identify and honestly challenge your ingrained money beliefs. She encourages exploring your "money story": what you were taught about wealth and successful people, and how your childhood experiences shape present-day fears.
Many operate from a scarcity mindset, believing money is always out of reach or that spending is perilous. Houtstra advocates practising "abundance thinking" – the belief that there are enough opportunities for income and savings. "Shifting to this type of thinking doesn’t necessarily make you feel better, but it does rewire your brain’s reward system and decision-making pathways," she said. This shift leads to more strategic behaviour, seeking opportunities, and comfortable investment in growth.
From Thought to Action: Planning and Accountability
While changing beliefs is vital, Houtstra stresses it "isn't enough" on its own. Action is required to change habits. "Making a plan and sticking to it is what breaks the cycle," she stated, highlighting accountability as the missing link for most people. Recognising a pattern is futile unless you hold yourself accountable for behaving differently.
It's also important to avoid being overly harsh. Viewing saving as purely about discipline and willpower can lead to a sense of failure. "If you keep telling yourself 'I’m bad with money' or 'I’ll never get ahead,' your behavior will reflect that. The good news is, those stories can be rewritten," Houtstra advised.
Spending with Purpose and Building Support
Contrary to popular advice, Houtstra warns against obsessively tracking every expense in a punitive way. Instead, she recommends spending with a purpose, focusing on purchases that add genuine value. One client who made this shift began automating savings, negotiating bills, and ironically ended up with more money each month.
Practising gratitude for the money you already have can boost your sense of abundance and reduce anxiety-driven spending. Celebrating small wins, like resisting an impulse buy, uses positive reinforcement to rewire your brain. Houtstra also suggests regular "money dates" for calm financial check-ins.
Finally, building a supportive team who share your financial mindset is crucial, especially within relationships. Conflicting money mindsets can lead to tension and secrecy. "Have open, non-judgmental conversations about money beliefs and goals," Houtstra urged, recommending family rituals that promote transparency and shared responsibility.
In conclusion, Houtstra asserts that identifying patterns, taking accountability, and creating lasting habits can unlock a ripple effect. "If you can change how you think and feel about money, you unlock a ripple effect - better decisions, less stress, more opportunity and ultimately, freedom," she said.
