A belief system may help or hurt. This statement is particularly true when it comes to money. Limiting beliefs about money are not only common, but it can hold you back from gaining financial security and financial freedom.
- Limiting beliefs prohibit the natural urge to succeed.
- They kill the will and desire to rise to the next level of accomplishment.
The good news is that since you learned these behaviors, you can unlearn them as well. Releasing limiting beliefs about money will get you to the level of financial freedom you want and deserve.
Let’s go through some of the most common examples of limiting beliefs that we learn about money.
Then you can identify where you may struggle, take action against them, and then start overcoming limiting beliefs about money ASAP!
This amazing guest post is from Robyn at A Dime Saved.
1) Money Is The Root Of All Evil Or Money Is Evil
There is a misconception about this concept.
Money is not evil, but the love of or obsession for money is the root or beginning of evil.
Because the love of money is idolatry. It is the worship of the creation instead of the Creator.
When you make money, it must have value, importance, and purpose for your life. It is the misuse and abuse of funds that can be destructive. Not the money itself.
When you set a goal to accomplish a project and then develop your plans, money comes in, all by itself, to fill the gap. Money here is the means, and the project is the end. The point is the project, and the money helps you get to the point.
Money is a good servant but a terrible master.
When you run straight at money, it becomes your master. You worship it. Money-love or the love of money is the root of all evil.
Calvin Coolidge once said:
“Prosperity is only an instrument to be used, not a deity to be worshiped.”
2) If I Am Successful, People Will Hate Me.
This thought comes from our innate desire to conform to the society we are in. Children habitually conform to certain peer attitudes, actions, and behaviors when in a group. There appears to be a primitive urge to conform to the group we associate with.
- Little children play together;
- they think alike,
- like similar things,
- talk the same way,
- mimic each other,
- laugh generously at the same thing, and
- dress the same way.
Adults aren’t much different.
Opting out of the conformity of our chosen group is often perceived as rebellion.
A demonstration of visible intention to be exclusive and different, especially by telling your group about…
- the new books you now read,
- goals you have set,
- new classes you are taking,
- the saving plans you have embraced…
…is a rebellion.
It makes your friends feel foolish or give the wrong impression about your desire to conform. When this happens, they collectively prepare to attack if they feel insecure about their own lives.
The first weapon they will use against you is the withdrawal of love.
This is why it is important that you love yourself. Never center your happiness on love from others. One of the greatest exercises in self-love is to decide to increase your wealth.
The decision to become financially stable must always be a personal desire. It is the starting point of financial independence and the first step to self-reliant and responsible adult life.
One sad fact of life is that you cannot bring all your friends into wealth.
You will not get rich as a group; each person gets rich when he is ready. As the saying goes, “when the student is ready, the teacher will appear.” Rarely do all friends get ready at the same time.
This can cause the fear that if you become successful, then people will hate you. However, true friends will appreciate your success and will not feel threatened.
This thought immediately reasons itself into absurdity. More and more poor people are getting rich every day by matriculation from the ranks of the poor.
The truth is that many of us are taught that money is scarce, so you must hang on to it tightly. Unfortunately, cash is hard to earn and easy to squander.
There is enough money to go around.
In fact, anyone can attract money to themselves. However, if you want to attract money into your life, you need more than mere positive thinking. You need to double down.
- Write a plan.
- Ask your boss for a raise.
- Start a side business.
- Launch a website.
- Pitch people.
- Buy an investment property.
That’s how you attract money: You hustle.
But you’re not likely to take that type of radical action if, deep down, you believe money is in short supply.
Scarcity is a de-motivator.
If we internalize the idea that there is not enough money to go around, it becomes rational to obsess over saving rather than earning. However, if money, like time, is a fixed quantity, optimization comes from cutting rather than growing.
And that’s a recipe for shortchanging yourself.
Now, to be clear, I’m a natural-born saver, and I encourage a minimalist(-ish) lifestyle, given that many people seem to have confused “needs” with “wants.”
But extreme saving is a problem.
- Clipping coupons,
- stockpiling toilet paper,
- and hoarding a garage brimming with useless plastic junk because it was “such a good deal” at a yard sale…
As Richard Templar put it in his book “The Rules of Wealth,”:
“Small economies won’t make you wealthy, but they will make you miserable. And being miserable isn’t a good place to start each day.”
Believe me, trying to make small economies to make you wealthy is doomed to failure. You need a decent breakfast and a positive mental attitude to start a day on a good note.
So, you cheat yourself when you overlook dollars to pick up dimes. You fall short of your potential when penny-pinching becomes more important than creative production.
Frugality is tempting: there’s an immediate payoff, instant gratification. There’s no fear of failure. And it focuses on consumerism (buying for less), which is more comfortable and familiar than creation (converting an idea into reality).
But frugality must always be in moderation. Cutting out your daily cappuccino might help you lose weight, and it might reduce your caffeine intake, but it isn’t going to make you rich, and it might well make you feel miserable.
4) Poverty Is Godly
A humorous statement credited to Abraham Lincoln:
“God must have loved the poor very much since he created many of them.”
This is meant to be a joke. The truth is that God loves everyone equally. He helps those who help themselves.
It was the same Abraham Lincoln, who was quoted as saying:
“You do not help the poor by becoming one of them.”
Only 20% of the people who start this article will finish it, act on the suggested ideas, and get the needed wealth. This is why only very few people succeed. Never glorify poverty. Don’t join the poor; help them.
God is not poor. How, then, can poverty be Godly?
Some believe that “money” is “mammon,” and whoever wants to be godly must run for it. Some religious fanatics usually perpetuate this misconception. Let us ask ourselves, do you necessarily become ungodly when you live comfortably and serve God? Or when you live in hardship?
If possession of money will make you ungodly, poverty will make you more ungodly and miserable. It could make you become an object of ridicule to God’s great Name.
5) When I Am Rich, It Might Deprive Others Of Having Enough.
This is similar to “there is no enough money to go around.”
The thought goes something like this:
- If I become rich, then I will be causing others to be poor.
- How can I do that to someone else?
Becoming rich does not automatically deprive others of money. There is enough money to go around.
If you don’t want to make money by taking it away from others, then don’t!
Make money by putting value into this world, by giving rather than taking. Doing that will make sure that your wealth isn’t depriving others of their due. We have not reached the point where there is no more money.
There is plenty enough to go around, and as long as you do not become greedy, everyone can have their share.
6) To Have Money Is To Have Problems Or Lack Of Rest
Many financially destitute people use these as a mere defense. “More money, more problems…”
Let us consider this:
If wealth accumulation will not bring rest, is it poverty that will bring peace of mind?
- Imagine how someone who has no money to give qualitative education to his children will have rest of mind.
- Or will somebody who cannot afford three square meals per day have rest of mind?
The answer is obvious. Being poor will not bring peace.
If you’re looking to start overcoming limiting beliefs about money, you may want to start with this one. It’s THAT important.
If riches and poverty cannot adequately give rest, who or what will then give rest?
The simple answer is “Me” and “You.” The sincerest of mind depicts a pleasant state of mind. It is a fact to realize that to have rest of mind, one needs to work it.
In fact, it is more possible for a rich man to have rest than a poor person. Take note that you cannot have what you hate. If someone feeds his thought with this, it will be difficult for them to have money.
Some individuals believe that too many people will trouble them to beg for it or borrow when they have plenty of money. And if they don’t give, they feel guilty. We now know that regular and planned giving schedules remove feelings of guilt.
7) Some Are Gifted For Wealth, And Some Are Destined For Poverty.
This ridiculous lie has destroyed initiative, drive, and motivation in many would-be winners throughout the world.
Many capable people have believed, “Whatever it was meant to be.”
The truth is, through the development of your talents, financial knowledge, and the principles of giving, you determine the financial reality of your life.
You create your destiny in this world.
- It’s YOU that decides what path your life will take.
- YOU control your destiny.
- YOU can change the path life has laid out for you and forge your way.
Create your own future by changing the narrative you have constructed for your life.
Related: How to Become a Billionaire Family
8) There Is Nothing You Can Do About Your Financial Situation.
It is hard not to feel stuck when you are in a bad financial situation. Add in a couple of generations of people living in poverty, and it is easy to see why some people may be destined to live in poverty forever.
While there are many reasons why your life situation may hold you back from achieving wealth easily, you can still fix your financial situation! No matter what circumstances you were born into or what circumstances you are in right now.
Excessive wealth may not be accessible to everyone, but having financial stability is certainly something you can work towards.
Doing absolutely nothing.
You can not change your financial situation if you don’t do anything to change your financial situation.
The first step to change is to believe that you can change.
Once you have decided that you are no longer stuck and you can improve your financial situation, you can chase after your dreams.
9) Profits Are Made By Taking Advantage Of Others.
This myth comes from the idea that life is a zero-sum game.
When one person wins, another loses. Any money you’ve earned is “made off the back” of someone else. Profits are evil; if you own a business and make profits, you are taking advantage of others.
Let take a closer look at this:
If profit is evil, wages, salaries, and incentives are evil.
For example, let us assume that you work for a cement company and bought cement from that company to build my house. If I assume the company is evil by making a profit from me, then employees’ salary is evil because they are paid from its profit.
Everyone needs something, and someone needs to meet that need. You make a profit from something; you spend it on other things. That’s a win-win.
Many people equate “profits” with greed. And that’s based on the premise that transactions are win-lose rather than win-win. This is a limited view of the world.
Businesses are sustainable when both parties are happy. Therefore, profits that come from win-wins are encouraged.
10) Rich people suck.
Often, people who would agree with the statement “you shouldn’t judge someone based on their socioeconomic class” will also, in the same breath, make superficial comments like “rich people don’t care,” “rich people are greedy,” or “rich people suck.”
I think some people hold a deeply limiting belief that they will never be rich. Nor will their friends or family.
But as we’ve learned, the “us vs. them” mindset is never positive for society. This is a mindset we should eradicate, not encourage.
If you agree that it’s wrong to judge others based on their socioeconomic class, remember that this works in every direction. In fact, some rich people are very nice. Some even donate much of their wealth and time, and power to helping other people.
With wealth comes enormous responsibility and expectations.
Many rich people do disappoint us in these areas. However, focusing on them is counterproductive. Let us focus on the rich people who use their money and wealth for good and if you do become wealthy, then make sure to prove this money limiting belief wrong.
Releasing Limiting Beliefs About Money – It’s Time to Start
Limiting beliefs about money or incorrect assumptions about money can hold you back.
We hold many false ideas and beliefs about money. Some of these beliefs are tactical, such as misinformation about credit scores. These beliefs can be fixed by having access to appropriate financial education.
Other beliefs are mindset-oriented and influence how we feel about concepts like profits, scarcity/abundance, and the level of attention we give to our finances. These truly affect our relationship with financials and how we view our relationship with money.
These limiting beliefs around money can hold you back from truly achieving the level of financial satisfaction you desire.
Is your own mind one of your main issues? Overcoming limiting money beliefs will help you break free from any of the mindsets that are holding you back.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.