Why People Have Trouble with Money
Most people don’t even realize that the way they think about money determines how they live.
For example, you may believe you can’t live on $2,000 a month or $5,000 a month.
The fact is you’ve set this as the limit you can earn by thinking this way.
What money mindsets are holding you back?
• Not depriving yourself.
We want things right now. We think we NEED to have the latest smart phone today. Why not?
We work hard for our money, so why can’t we have the latest and greatest thing?
The desire to have it is more powerful than the habit to save for it.
• Budgeting is too hard or too much work.
For years we’ve been led to believe that it can be painful and time consuming to budget.
Managing your money wasn’t fun.
• Poor role models.
It’s human nature to follow the same course as our parents and other role models. If your parents were terrible with money, you probably learned their bad habits.
Like any habit, you can change it.
• Not knowing where money is going.
Like putting your head in the sand, not knowing where your money is going can leave you floundering in debt or keep you from growing financially. In business it’s referred to as bad bookkeeping.
• Live in the moment/ keep up with the Jones’s.
According to a recent Federal Reserve survey, 31% of working people have no retirement savings. And many who have little or no savings are completely focused on living in the moment.
One reason for this is they are trying to keep up with the Jones’s or Kardashians.
These people believe buying things will make them happy or that they need to keep up with their neighbors.
Determining your money mindset is vital in how healthy your relationship with money is.
Your money mindset is how you know you’re heading in the right direction and how you feel about wealth.
If your money mindset isn’t healthy, you may be living way below your means.
For example, you may not have a healthy savings or you may be living paycheck to paycheck.
If you have the scarcity mindset, you might be wrecking your finances and don’t even know why.
The scarcity mindset comes from focusing on everything we lack.
You focus on what you can’t do, missing key opportunities for growing your wealth.
There are many money mindsets that you can have. Today I will help you determine what your money mindsets are and how you can make a change.
Do you know what your money mindset is?
Here are a few clues to get you started:
- Does money cause you uneasiness?
- Are you happy with your life?
- Did you consider yourself rich or poor growing up?
- Was money a source of conflict growing up?
- How do you see yourself? Are you successful or struggling?
- What are your earliest memories around money?
- Are you able to talk about money comfortably?
- How would you best describe how you feel about wealth?
- Does money play a central theme in your thinking?
- What is your level of stress around money?
Think through your answers.
- Your money mindset is poor: If your answers indicate anxiety and discomfort.
- Your money mindset is supportive of living a satisfying life: If your answers give you comfort and ease.
You and you alone are in charge of your money mindset. You decide whether you want to change it, modify it or strengthen it.
Are you ready to change your money mindset for the better?
In my next post I will share with you my steps to changing your money mindset.
If you need help with your money mindset I can help Book a Free Email Consultation Here and start your year right . Take control of your finances today.