Hello and welcome to our first blog post! Most people have no idea that the biggest obstacle preventing you from obtaining financial freedom has to do with one simple thing – your mindset. Our money mindset can significantly influence our financial opportunities and outcomes. It is no secret that understanding your money mindset and taking steps to improve your relationship with money is a crucial first step towards achieving your financial goals. When you improve your money mindset you learn how to be proactive instead of reactive with your money thus seeing money as truly limitless instead of something that holds us back. So, without further ado, the # 1 money mindset that keeps you poor is….
The Fear of Financial Failure.
Commonly the most limiting financial mindset and most people deal with this limiting belief at some level due to personal experiences or the experiences of others they know. This mindset is characterized by the belief that growing your money is a waste of time, unattainable, and destined for failure. The difference between this mindset and simply being cautious is that this mindset is characterized by a crimpling fear that taking any type of risk or opportunity will lead to financial ruin. The consequences of this keeping this mindset are missing opportunities for financial growth, stagnation, lack of personal and professional growth, long term financial struggles, avoiding financial opportunities. Common signs of this mindset are:
- Avoidance of Financial Opportunities: Shunning job opportunities that allow you to grow or investments.
- Procrastination and Indecisiveness: putting off financial planning.
- Self-Doubt: Usually includes negative self-talk such as “I don’t know how to save money,” or “I’m incapable of sticking to a budget.”
- Resistance to change: Feeling like your current state is more comfortable than financial growth.
Think carefully about the above warning signs of this mindset. Most individuals have experienced one or all of these beliefs at some point in their lives. It’s not your fault, it often starts in childhood and stems from your parents’ relationship with money. Not to mention all the negativity in the world regarding investments and opportunities. When I think about the three most common methods individuals have used to create wealth throughout history – 1. The stock market, 2. Real Estate, 3, Entrepreneurship, you mention any one of these powerful wealth building methods to ten people I bet the majority of them would have something negative to say or an opinion on what’s best or what doesn’t work even though the majority of individuals who achieved financial success have built their wealth using one or all of these methods.
So how can we break through this negative mindset?
- Acknowledge Your Negative Mindset: Realizing your negative views towards money is the first step towards developing a new mindset. Journal about these negative feelings and write where you think they stem from.
- Challenge Your Negative Beliefs: acknowledging that you can improve your finances regardless of external circumstances is the first step towards shifting your mindset.
- Create A Budget or Savings Plan: Start making small goals that you can achieve in the short term such as saving an extra $25 per month and creating a budget. Once you accomplish these goals you’ll gain the confidence required to start changing your mindset and you’ll be able to start thinking about long term goals such as retiring early or buying a new car.
- Education, Education, Education: Proper financial education will dispel negative beliefs regarding making money and give you the confidence to take action.
- Connect With Financially Savvy Individuals: You probably know a couple of people who are a step ahead of you financially. Connect with these people and learn about their successes and failures regarding finances. If you can find a mentor even better.
- Find A Community of Like-Minded Individuals: Joining a community of like-minded positive individuals can help keep you focused on a more positive money mindset as well as keep you motivated to take action throughout your journey.
Don’t let fear hold you back from obtaining financial freedom or reaching your financial goals. Changing your mindset requires acknowledgement of negative beliefs as well as an understanding of where they came from. Even though everyone’s financial journey is unique, I truly believe that person can obtain financial success. CM.
