How to Reset Your Financial Thermostat and Boost Your Wealth

As my career in accountancy grew, so did my salary. But no matter how much I earned, there was never more money in the bank. I spent it as quickly as it came in, always returning to the same financial spot. It wasn’t until later that I realized I was stuck in a pattern controlled by my financial thermostat—an internal setting that dictates how much wealth we’re comfortable having.

Does this sound familiar? Keep reading to find out how your financial thermostat might be limiting your wealth—and how you can reset it to break the cycle.

What is the Financial Thermostat?

The financial thermostat is a powerful concept. Just like the thermostat in your home controls the temperature, your financial thermostat regulates how much money you allow yourself to earn and keep. You have a financial comfort zone—a range of income that feels “normal” to you. Typically, this comfort zone is within 10% of your current income.

How the Financial Thermostat Works

When you go above or below that range, your financial thermostat kicks in. For example, if you start earning more than you’re used to, you might feel uncomfortable and find ways to lose or spend that extra money. This is why many lottery winners end up broke within a few years. They’ve exceeded their financial thermostat, and their subconscious mind brings them back down to what feels comfortable. On the other hand, if your earnings dip below your set range, you’ll feel pressure to get back up to what feels normal.

What Shapes Your Financial Thermostat?

Your financial thermostat is shaped by family beliefs, cultural norms, and personal experiences. If you grew up hearing things like “money doesn’t grow on trees” or “rich people are greedy,” you may have set your thermostat lower than you deserve without even realizing it. But it’s not just family and culture—your social circle plays a huge role too.

We tend to set our financial thermostat at a similar level to the people we associate with. If your friends and colleagues have a certain financial comfort zone, you may unconsciously adjust yours to match theirs. The more you surround yourself with people who believe in financial growth and abundance, the more likely you are to raise your own thermostat.

Why Adjusting Your Thermostat is Key to Wealth

To increase your wealth, it’s not just about making more money. It’s about becoming aware of your financial thermostat and raising it to match your true potential. Once you do that, you can start earning more and keeping more, without feeling the need to bring yourself back down. Awareness is the first step to breaking through that financial ceiling.

The Impact of a Low Financial Thermostat

A low financial thermostat often leads to under-earning or self-sabotage. You may turn down promotions, avoid asking for raises, or even spend money the moment it comes in. This keeps you stuck in a cycle of financial struggle, never truly getting ahead.

Even when things are going well, your thermostat can pull you back. You might find yourself sabotaging your own success, returning to a financial “comfort zone.” It’s a way of staying within limits shaped by deep-seated beliefs about money and self-worth. This pattern keeps your earnings and wealth at a low, familiar level.

If you’ve ever felt like you’re hitting a financial ceiling, it’s likely your financial thermostat at work.

How to Raise Your Financial Thermostat

Recognize Your Current Setting

Start by reflecting on your money history. Take out a journal and think about not just how much you earn, but how much you spend. What did your family believe about money? How do your friends and family handle earning and spending—do they live paycheck to paycheck or save consistently? Has your net balance always stayed the same, no matter how much you earned?

Here are some journaling prompts to dive deeper:

• What is my attitude to saving money?
• How do I feel about earning a lot of money? Spending a lot of money?
• How have my spending habits changed over the years?
• Does my financial situation tend to stay the same, even when my income goes up?
• How does my family’s money history compare to mine?
• Do I feel wealthy?
• Do I consider my friends and family wealthy?

This reflection can reveal where your financial thermostat is set and how it’s been shaped over time.

Identify Limiting Beliefs

Now, take a moment to identify the beliefs that are keeping you stuck. These could be thoughts like, “Money is hard to earn,” “Rich people are greedy,” or “I don’t deserve wealth.” These limiting beliefs act as invisible barriers to your financial growth.

To break free from them, try EFT tapping. This technique helps release emotional energy tied to these beliefs. By tapping through these feelings, you can start shifting your mindset and open the door to financial success.

Set a New Financial Goal

Now it’s time to raise the bar. Take a few minutes to visualize your ideal financial situation. How much do you want to earn? What would your life look like with financial freedom? How would you feel?

Take Action to Adjust

Raising your financial thermostat requires action. Here’s how to start:

1. Ask for What You Deserve
   Begin by asking for a raise, increasing your rates, or taking on better-paying work. Stop accepting underpaid jobs or opportunities that don’t match your new standards.
2. Do Some Financial Housekeeping
   After that review your bank accounts, credit cards, and bills. Make sure you’re clear on where your money is going.
3. Stop the Money Drain
   Then identify areas where you’re losing money. Cancel unused subscriptions. Set up automatic savings. Track your spending for a month to find where you can cut back.
4. Find an Accountability Partner
   Share your financial goals with someone you trust. Regular check-ins will help keep you on track and push through any resistance.
5. Surround Yourself with High Achievers
   Finally spend time with people who have higher financial goals. Their mindset and habits will push you outside your comfort zone and inspire you to aim higher in your own financial journey.

Stay Consistent

Change takes time, so stay patient. Focus on small, consistent actions. Each step you take pushes your comfort zone a little further. Invest in new skills. Set clear financial boundaries. Charge what you’re truly worth.

Over time, these small actions compound. They build momentum and gradually adjust your financial thermostat. As you stick with it, you’ll break through old limits and start seeing real, lasting change in your finances.

Final Thoughts

My change began when I met my partner. He was passionate about financial freedom and investing. He talked openly about money and shared his financial information with me. That’s when I realized I could choose a different path. Little by little, my financial thermostat started to rise.

Over the last four years, my income increased by 16%, but my investments skyrocketed by 233%. I moved to a larger home, saved regularly, and it hasn’t affected my lifestyle. All of this happened because I raised my financial thermostat.

You can do the same. With small, consistent steps and the right mindset, you can break through your old financial limits. Start by recognizing where you’re stuck, take action, and stay committed to raising your financial thermostat. Keep pushing your boundaries, and watch your wealth grow. The power to reset your financial thermostat is in your hands.