Cultivating the right money mindset can impact your financial situation in the most powerful of ways. An individual’s financial status is often 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 many 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 overcome it. A scarcity mindset convinces people to 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 hopes to one day get clear of their debt.
People with a scarcity 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, often by buying dumb things.
2) Victim Thinking
Blaming other people is another money mindset that keeps people broke. People would rather blame the government, corporations, and their friends for their own poor financial conditions instead of taking responsibility for their own monetary actions.
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 for things to not go your way. Everyone experiences disappointment in their life. But it’s not a good idea to identify yourself as a victim due to short term failure.
3) Fear of 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. If you suffer from anxiety this can be especially tough. Never be afraid to reach out to a doctor or psychologist to find better forms of coping.
Poor people make a lot of excuses as a way to justify their current financial condition because they are scared of people judging them harshly. More often than not 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 having been overly criticized or from fearing criticism and failure.
Money has been always associated with power and authority. But in middle-class societies it can seem almost frowned upon to aspire to be wealthy and rich. Many are brought up with a belief that wealthy people are evil and that they use unethical ways to earn money (which, while not common, can and does still happen. This is where ethics comes into play – more on that another time). They also think that a good education and getting a higher up corporate job position is the only way to earn money.
To become wealthy, it is essential to get rid of feelings of irrational guilt. When a person acquires wealth they also create jobs for other people. On a large scale, this is how money circulates and supports the economic growth of the entire nation. Even if someone deposits their money in a bank, someone is still benefiting from it. Essentially, there’s nothing bad about aspiring to be rich and successful.
The mindsets listed above are negative, dangerous, and, if left unaddressed, will send you on a downward spiral in life. Instead of forcibly removing these negative beliefs from your mind, you should think about replacing them with positive ones instead. It won’t happen overnight but, with diligent practice, will change your life.