Ingraining a right money mindset can impact your financial situation in a powerful way. A person’s financial status is a result of their beliefs about money and wealth.

A lot of people are brought up with the belief that rich people have certain credentials that others don’t. The reality is, wealthy people have a good relationship with money and they feel entitled to achieve it.

Here are the 5 money mindsets that are keeping you broke. Mark and acknowledge them to finally begin your journey to financial freedom

1) Scarcity mindset

Scarcity is one of the money mindsets that keep people poor. It’s very difficult to come out of it. It makes people make irrational decisions like buying a house or an expensive car without having a passive source of income to pay for it. Hence people work hard in their jobs in a hope to one day get clear of their debt. 

People with a scarce mindset have a fear of being broke or appearing poor in social situations. It also gives people long-term anxiety and stress that they constantly try to escape from by buying dumb things. 

2) Victim thinking

Blaming other people is another money mindset that keeps people broke. People blame the government, corporations and their friends for their own poor financial conditions. This way, they get to cover up their own shortcomings

This mentality makes them even poorer as they stop taking action and believe themselves to be a victim. It’s very common to fail or to things not go your way. Everyone experiences disappointment in their life. But is not a great idea to identify yourself as a victim due to short term failure.

3) Fear of failure

fear failure

When was the last time you tried something new? Do you judge yourself if things don’t go your way? Fear of failure can be paralyzing for most of us. It is one of those money mindsets that won’t go away until you accept failure as a part of the learning curve and not see it as a bad thing.

4) Insecurity

Poor people make a lot of excuses as a way to justify their current financial condition. They are scared of people judging them harshly. Most often, it’s a result of being raised in an unfriendly environment and surrounded by people who only pointed out your negative qualities.

Insecurity can be dissolved by accepting yourself and making incremental changes in your life. Insecurity has nothing to with being poor. But more to do with being criticized all the time in childhood.

5) Guilt

Money has been always associated with power and authority. But in middle-class societies, it is frowned upon to aspire to be wealthy and rich. They are brought up with a belief that wealthy people are evil and they use unethical ways to earn money. They also think that a good education and getting a job is the only way to earn money. 

To become wealthy, it is essential to get rid of such feelings of guilt that are completely irrational. When a person acquires wealth, he/she also creates jobs for other people. Hence, the money circulates and supports the economic growth of the entire nation. Even if someone parks their money in a bank, someone still is benefiting from it. So, there is nothing wrong in aspiring to be rich.

Conclusion

The mindsets listing above a negative and, if left unaddressed, will take to a downward spiral in life.  Instead of forcibly removing these negative beliefs from your mind, you should think about replacing them with a few positive ones.