Money Beliefs That Limit You And How To Shift Them
Money beliefs are what either help us to attract more money or shut down our vision for seeing opportunities that could make us wealthy.
In the past, my mind would always believe that I would never be rich. Being rich is for other people. Being rich makes you greedy.
I always considered myself to be sort of “down-to-earth” and growing up in destitution meant that I believed that there was only a certain amount of money that I could ever make. I’ve since learned that these money beliefs were just subconscious limitations that I put on myself and sadly for many years I never manifested much money no matter how hard I worked.
In my life, I’ve had a TON of money blocks that kept me broke. Another one was a thought that it takes a great deal of intelligence to be wealth and I didn’t think too highly of myself so of course I’d never be rich. I’m too dumb to be rich. “You have to know about stocks and taxes and well, I’m to dumb to learn those things”.
It’s true! I can’t believe I talked to myself like this!
I realize now how these money beliefs have kept me poor my whole life.
After all of these years working on being my best version, learning everything that I could to improve my mind and grow a business online, let me tell you this. It’s not the things you don’t know, but rather the incorrect things you believe, that cause many of the real challenges in life.
A few errors in your thinking can be a detriment to your finances. Enhancing your understanding of money and personal finances is an effective way to get on the path to prosperity. There are some money blocks or money beliefs that you should avoid!
Avoid these money myths:
Income equals wealth. People that make more have a tendency to spend more. Lottery winners are notorious for losing everything. Many of the families that earn over $1 million per year manage to outspend their income. You can earn a very high income and still live paycheck to paycheck.
Wealth is what’s left over after you’re done spending. The more money you’re able to invest in appreciating and income-producing assets, the more you can expect your wealth to grow. A high income provides opportunity. It doesn’t provide a guarantee. This money belief will keep you in the poor house for sure.
More money equals more happiness / Money has nothing to do with happiness. Studies have consistently shown that more income results in greater levels of happiness to a point. The break-even mark appears to be $75,000 per year.
If you’re earning less than $75,000, you can expect your feelings of happiness to increase with a greater income.
If you’re already earning that much or more, more money isn’t going to make you feel any better.
Wills are for rich people. Everyone with children or assets needs a will. Unless you want the courts to decide who will raise your children and receive your assets, you need a will. A simple will is only a few hundred dollars. You might even be able to do it yourself for less.
Owning is better than renting. From a financial viewpoint, it depends. Mortgage interest is deductible, but it’s still a significant expense. Home ownership also includes property taxes and maintenance. The upside is the potential for appreciation and a place to call your own. Crunch the numbers and decide for yourself. Is this a money belief that you believe in?
Renting is generally advantageous in the short-term.
Quality and price go hand-in-hand. There are many examples of this statement being false. Generic drugs are identical to the brand name version and cost much less. Companies price goods and services in order to maximize profit. That means the perceived value affects pricing, not the actual value.
Many items are priced to accommodate expensive marketing campaigns. The Beats headphones so popular with teenagers are considered by experts to be only worth half the common retail price. In this case, you’re not paying extra for higher quality.
An index fund never wins. Over time, index funds outperform the majority of managed funds. More often than not, the lower expenses and turnover rate of an index fund are more important than a professional stock-picker. Take advantage of the ability to match market returns for very little expense.
You should never have a credit card. Credit cards are a wonderful invention if used properly. However, credit cards also provide a means to spend money you don’t have. This can be a challenge or a godsend, depending on the circumstances. Credit cards can also help (or damage) your credit.
Think about it for a second, are your negative thoughts about money blocking abundance or a better financial future? Consider all of your money beliefs and question if they’re wrong. Having abundant thoughts and beliefs about money enhances our decision-making in everything we do, especially in business. You’ll notice you’ll have better results when you eliminate the money blocks. Do everything you can to not buy into these money beliefs.
Can You Change Your Money Beliefs And Mindset?
Of course you can and we’re going to discuss some ways to do that within this planner. There’s absolutely no shame in acknowledging that you fall into the poverty mindset; so many people do! Now it’s time to take action to change that mindset and to change your outlook on life and your business.
Just remember, changing your mindset takes practice and some time. It’s not something that just switches overnight. Think about how long you’ve been in a poverty mindset; many, many years, right? That won’t change quickly. But there IS hope! I’ve included quite a few exercises that examine how you developed this money block in the first place and ways to change your way of thinking about money that will open you to attracting more money in abundance. Of course, there’s work involved; it’s not magic. But working on your mindset and overcoming those money blocks will open up your world to new opportunities as well as boost your self-confidence.
Eliminating Money Beliefs Or Money Blocks: Acknowledging the Problem Is Always the First Best Step
Understanding and acknowledging the problem is almost always the first hurdle you must overcome when seeking to accomplish bigger, better things. One of the greatest challenges entrepreneurs face is the fear of daring to dream big – or even of admitting you have those big dreams for your business.
In fact, most entrepreneurs, if asked the question “How much money do you want to make from your business?” will respond with one of the following answers:
“I just want to make enough money to stay home with the kids.”
“I just want to make enough to buy a new sofa for my living room.”
“I just want to make enough to put a dent in my credit card debt.”
“I just want to be able to have a little money left at the end of the month.”
These are all great goals. But these types of goals do not become driving forces that keep you motivated. They don’t inspire you when challenges arise. They may, in fact, be holding you back.
More importantly, they aren’t the authentic truth. There’s nothing wrong with daring to dream big. It’s also perfectly acceptable to admit you have those big dreams. Of course, the first person you have to let in on the secret is yourself.
Be Honest with Yourself
Once you’ve accepted that you dream of more than making ends meet, getting by, or finding a way to balance working a business and watching your children grow, then you can begin acting to create and accomplish goals for your business.
One thing is certain. You’ll never reach the level of success you dream of, if you can’t admit it to yourself. Once you’ve decided for yourself that you have these dreams, the next step on your journey is fleshing out your dream. Defining your dream and creating a path for accomplishing it.
Write down what you want. Create a vision board with the things you want to buy with your money. Stare at the board day after day. Let your desire to earn those things drive you in your business. Use this vision board, or your “list of future purchases” (for those of us who work better with lists than pictures), to inspire your business goals and provide an extra boost of motivation when you’re tired or feeling discouraged.
Tell Others about Your Dreams
After admitting your dreams to yourself, one of the most terrifying things you will do – and the most necessary – is letting others in on your dreams. Share your dreams with your spouse, your best friend, and even a critic or two.
Once you tell others, it becomes necessary to act consistently to accomplish those dreams. Be specific. Give yourself dates and deadlines. Carve out a path in your business to accomplish your goals one by one. Don’t make them all so large you can’t see a path. Give yourself small victories to celebrate along the way.
Acknowledging the problem, that you have dreams that inspire, and, to some degree, terrify you, is your first step on a long and fulfilling journey to success as an entrepreneur.
WHAT TO DO NEXT TO ELIMINATE THE MONEY BELIEFS THAT ARE SABOTAGING YOU.
Now it’s your turn. Think about the money beliefs that I’ve mentioned. You should also look at some of the money myths too. Which of these seemed true for you? Be sure to make a note of them so you can come back to them later to release them.