7 Most Common Money Mindset Blocks That are keeping you poor (And How to Overcome Them) | INVESTED MOM
Do you ever feel like you can't seem to get ahead financially? That no matter how hard you try, you just can't seem to save any money or make any headway? If so, you're not alone. Many people struggle with common money mindset blocks that keep them from achieving their financial goals.
Money is one of the most common sources of stress in people's lives. It can be hard to keep our finances in order and make sure that we're doing everything we can to grow our wealth. One of the reasons this can be so difficult is because of our money blocks. These are limiting beliefs that we have about money that hold us back from achieving our own financial success.
If we want to overcome our common money mindset blocks, it's important to first identify which money beliefs we have. Once we know what's holding us back, we can start to work on overcoming them. With a little effort, we can achieve financial well-being and create the life we want!
In this article, we will discuss the 7 most common money mindset blocks that are keeping you poor, and how to overcome them!
The most common money mindset blocks that are keeping your poor include:
Procrastination
Fear of failure
Perfectionism & comparisonitis
Avoidance
Negative self-talk
Uncertainty
Procrastination money block
If you're like most people, you've probably experienced the phenomenon of procrastination at some point in your life. Whether it's putting off studying for an exam or delaying starting a new task, procrastination can have a significant impact on our lives and financial success. But what many people don't realize is that procrastination can also be a major money mindset block.
When we procrastinate, we're essentially telling ourselves that we're not good enough to achieve our goals. We convince ourselves that we don't have the time, energy, or resources to get the job done. This money block can prevent us from taking the necessary steps to improve our financial situation.
As someone who struggles with a neurodivergent brain, ADHD often gets in the way of my progress, and procrastination was the number one obstacle I had to overcome to build my wealth.
Instead of succumbing to procrastination, try to reframe your thinking with new beliefs.
Remind yourself with positive statements that you are capable of achieving your goals, no matter how big or small they may be, and it will become a self-fulfilling prophecy. Take action today, even if it's just one small step. You'll be surprised at how much progress you can make when you start to believe in yourself. There are also some more practical steps you can take (and discuss with your doctor) around different therapies available to help overcome extreme procrastination.
Procrastinating when it comes to finances leads to guilt and regret.
Putting off saving for retirement, investing in a new business venture or even just paying your bills on time can lead to guilt and regret later on. Not only does procrastinating when it comes to finances cost you money in the long run, but it can also take a toll on your mental health. The stress and anxiety of financial insecurity can lead to sleepless nights, decreased productivity at work, and a general feeling of unease. It's a huge money block!
It can be difficult to admit these feelings as it usually requires acknowledging that we don't meet our own expectations and we don't value ourselves, which leads to more guilt and shame.
Worrying about what will happen if/when you make more money
So many of us have a money mindset block around procrastination - we worry about what will happen when we make more money. The truth is, if you're not making the most of your time and resources now, you're not likely to do so when you have more money.
Instead, focus on what you can do today to move closer to your financial goals. Make a plan, set some deadlines, and stick to them. If you find yourself procrastinating, ask yourself what's really holding you back. Fear of success? Fear of failure?
Once you identify the root cause of your procrastination, you can start to address it and move forward. Remember, every step you take gets you closer to your goal. So don't let procrastination stand in your way.
Related Reading: The Mindset Block I Didn't Know Existed That Was Keeping Me In Debt | INVESTED MOM — Invested Mom
Fear of failure
Fear of failure can manifest itself in a number of ways, such as not taking risks, being too conservative with investments, or not starting a business because you're afraid it will fail.
The reality is that everyone experiences failure at some point in their lives. The key is to learn from your mistakes and use them as opportunities to grow. When you're afraid of failing, you miss out on the chance to learn and improve. You also miss out on potential rewards, both financial and personal.
So instead of letting fear hold you back, try to embrace it. Use it as motivation to push yourself outside your comfort zone. And when you do fail, don't beat yourself up. Accept it as part of the journey and use it as a learning opportunity.
Fear that you'll never get out of debt
It's easy to get caught in the cycle of debt. You miss a credit card payment, and suddenly you're hit with fees and interest that make it hard to catch up. Before you know it, you're juggling multiple payments each month and worried that you'll never get out from under the mountain of debt.
This fear can manifest itself in a number of ways, but the end result is always the same: you're so afraid of failing that you never even try to get out of debt. Maybe you've been in debt for years and you've just accepted it as a fact of life.
Or maybe you're constantly making minimum payments, but you're never able to get ahead. Either way, the fear of failure is holding you back from making real progress. But here's the thing: everyone makes mistakes. And if you're never willing to take a risk, you'll never be able to achieve your financial goals.
So what's the solution? The first step is to recognize that the fear of failure is only holding you back. Once you've done that, it's time to take action. Make a plan to get out of debt, and start taking steps to make it happen. You may not succeed overnight, but if you keep moving forward, eventually you'll reach your goals. And when you do, you'll be glad you took the risk.
While too much debt can certainly be a problem, there are also good types of debt that can help you grow your wealth. For example, taking out a loan to invest in a rental property can be a good way to build your wealth over time.
Being afraid to invest and worrying about how to invest or spend your money.
For a lot of us, thinking about money can be pretty stressful. After all, there's a lot riding on our financial decisions. If we make a bad investment, we could end up losing everything we've put in. And if we're not careful with our spending, we could find ourselves in debt. It's no wonder that so many of us are afraid to invest or even just save for the future.
But here's the thing: not taking action with your money is actually one of the biggest financial mistakes you can make. After all, inflation is a real thing, and if you're not investing, you're likely losing money without even realizing it. So how do you get over your fear of investing? The first step is to educate yourself on investing. Read books, talk to financial advisers, and learn as much as you can about the different options available to you. Once you have a better understanding of how investing works, you'll be in a much better position to make smart choices with your money. And remember: even if you make a few mistakes along the way, don't let them keep you from reaching your financial goals. If the fear of investing is scaring you, consider joining my Wealth Builders Workshop Membership - I teach you everything you need to get started.
Motivation
Many people are in a situation in which financial security is compromised because of a lack of resources. If the subconscious mind allows the conscious mind a specific mindset about money, then this can negatively affect the relationship between them. If your motivation to make money is poor or you feel too anxious to try, it could be due to your lack of energy, or fear of failure to try.
Perfectionism and comparisonitis money blocks
"Perfection is the enemy of the good" — Voltaire
This can be as simple as thinking that you don't have enough money to save. And this may very well be true, today. But with the right financial plan and spending audit, you'd be surprised where we can find a few dollars to start saving. If you need help with this, book a strategy call with me!
Hoarding money
Savings can be beneficial. Hoarding money isn't.
It's important to learn the habit of saving, to investing (or paying down bad debt), but if you're hoarding your cash in savings, and never investing it, you are missing out on much higher returns (on the upside) and your money getting devalued by inflation (on the downside), so it's a double negative whammy. Keep your savings' spending power high by investing it.
Money as a status symbol
You might see money as an icon if you spend a lot on impressing others. While it may feel nice to be a generous person paying money to other people, it can also lead to a negative mindset.
It's true, that money can help improve our quality of life, but remember, money doesn't change your personality, it's not about personality, it only enhances the personality you already have. Money gives you the ability to be more of who you are.
If you're a person who gets joy out of helping others, money will enhance that. If you're a person who thrives on validation and keeping up with the Jones', then you will buy more flashing things and host bigger parties.
Being generous to a fault
When you give generously to others, it's not a good idea to spend it on the expenses of others' lives. Assess whether there's an opportunity to give by teaching skills or investing in education, rather than day-to-day expenses. If your savings are not saved because you give them away constantly, it can cause issues in your own life and ultimately limits the generosity you can practice overall.
Instead, take the mindset of being able to create income streams and cash flow with that money, and use that to do your charity. Rich Dad, Poor Dad by Robert Kyosaki explores this concept in detail and it's one of my favorite reads.
Thinking that you need to make a lot of money to be wealthy.
This isn't true!
You can become wealthy by saving and investing your money wisely, regardless of how much you make. It's not about how much you make, it's about how much you keep. Think about that.
Lack of self-confidence and limiting beliefs
Self-confidence and limiting beliefs can wreak havoc on our financial well-being and keep us poor. If I look back at my own journey, the lack of self-confidence played a huge role in why I didn't start sooner.
We believe we don't deserve money or abundance.
A common money mindset block is the belief that we don't deserve wealth or abundance. This can come from a variety of experiences, such as growing up in a low-income household or seeing our parents struggle financially. Whatever the case may be, it's important to recognize that this belief is holding us back from achieving our financial goals and taking the necessary steps to dismantle this belief. For me, affirmations and a gratitude practice really helps here.
The most common money blocks all have a strong emotional response behind them, at their core, and you will never be financially successful without crushing this limiting belief because it ties back to money avoidance.
Believing that you're not good with money
A lot of people hold limiting beliefs about how they're not good with money. They think that they're destined to live paycheck to paycheck, and that they'll never be able to save up for their dream home or retirement. But the truth is, anyone can learn to be good with money. It's not about being born with a "financial gene" – it's about developing the right habits and mindset. If you're not good with money, here are three tips to help you change your thinking and start building wealth:
1. Stop comparing yourself to others.
One of the biggest reasons people don't feel good about their finances is because they compare themselves to others. They see their friends buying designer clothes and taking fancy vacations, and they think "I can never have that." But the reality is that everyone's financial situation is different. Just because someone else can afford to splurge doesn't mean you can't save up for your own goals. Instead of comparing yourself to others, focus on your own progress and celebrate each milestone along the way.
2. Make a budget – and stick to it.
If you want to get a handle on your finances, one of the best things you can do is create a budget. Here's just one example:
Figure out how much money you need to cover your essentials, and then start working towards your financial goals. It's also important to be realistic with your budget – if you know you're not going to stick to it, there's no point in making one in the first place. Focus on spending money on things that align with your values, and cut everything else out. When you spend money only on things that add value to your life (real value).
3. And finally, don't forget to review your budget regularly.
As your income or expenses change, so should your budget. Reviewing your budget and your bank account regularly also helps to keep you accountable to your own money and goals and can even help to motivate you further after seeing your own success and progress.
Doubting your ability to manage increased income
This is a tricky one, it's not uncommon to have negative subconscious beliefs and feel a sense of Doubt when it comes to managing increased income. After all, money management can be tough, but knowing how to budget and save when you're used to living on a tight budget, will help you maximize and funnel every extra cent at your disposal into investments.
In addition, don't be afraid to ask for help from a financial advisor or friend who is good with money. They can offer valuable insights and guidance on how to make the most of your increased income. Finally, remember that it's okay to make mistakes - we all do! Just learn from them and keep moving forward towards your financial goals.
Related Reading: Why Saving and Investing is the Key to True Freedom and Flexibility for Women | INVESTED MOM — Invested Mom
“I'm just not that smart”
Anyone who is interested in understanding the basics of the subject is smart! Having the right knowledge doesn't mean you'll know everything about everything. If you believe you're not smart, it could hinder your chances of success. Your thoughts control your life. Remove these negative money status scripts from your life!
Money Avoidance
Money avoiders tend to accumulate less and often have less money. They often overspend, sacrifice their finances to others, and are hampered by their money or savings accounts. Money evaders believe money can be abused in an unconscious effort to get the most from it. They often believe that money is the root of all evil.
The belief is that we have to work hard for money
This can lead us to believe that we're not worthy of wealth if we're not working ourselves to the bone. There are many ways to make money without working ourselves into the ground.
Not knowing where your money is going
Quite simply, not paying attention to where you spend your money and how. This is common when you have low expectations of yourself and are not in touch with the energy required to boost your conscious desires and increase your net worth.
If you don't know where your money is going, it's hard to focus on getting more income when you just buy all the things and you never do things differently.
Not knowing where your money is going
Quite simply, not paying attention to where you spend your money and how. This is common when you have low expectations of yourself and are not in touch with the energy required to boost your conscious desires and increase your net worth.
If you don't know where your money is going, it's hard to focus on getting more income when you just buy all the things and you never do things differently.
Not being mindful of your spending
Mindfulness is key when it comes to money. Being mindful of your spending means being aware of your purchases and their impact on your finances. It also means being present at the moment and not letting emotions or impulses guide your decisions. This can help remove money blocks and not let negative beliefs creep in
When you're not mindful of your spending, it's easy to let money slip through your fingers without even realizing it. You might make an impulse purchase that you later regret, or you might not realize how much you're spending on non-essential items.
To be more mindful of your spending here's an example of what you could do: Start by tracking your expenses for a month. This will help you to become more aware of your spending patterns and find areas where you can cut back. Then, as already stated, make a budget and stick to it. And when you're tempted to make a purchase, ask yourself if it's really necessary. If not, walk away.
Not valuing your time
One of the most common money mindset blocks is not valuing your time. This can manifest itself in a number of ways, such as working long hours for little pay (or no overtime), not taking vacation days, or not investing in your own education and development.
When you don't value your time, you're essentially telling yourself that your time is worth less than someone else's, that they are a good person and you are a bad person. These negative thoughts and negative self-talk can lead to burnout, decreased productivity, and a general feeling of unhappiness.
Instead of devaluing your time, try to reframe your thinking. Remind yourself that you are just as worthy of a good life as anyone else. You don't have to be like some other money worshippers out there.
Invest in yourself, both professionally and personally. And make sure to take some time for rest and relaxation. You deserve it. More importantly, your financial success depends on it.
The negative self-talk that leads to self-sabotage
A few common negative self-talk around finances sounds like:
"I'm a bad person if I want to have nice things..."
"Money is evil!"
Or, you're feeling guilty or selfish when you think about making more money.
Or, thinking that more money will change who you are or how people view you.
These are all common money blocks.
Holding a grudge against yourself for past money mistakes
Everyone – each of us — has made mistakes around money in the past. The pay cheque blown on nights out, the money status handbag you splurged on, the forgotten bank statements with all the evidence...
Release yourself from that energy. Give up the grudge. It's not serving you.
“I don't believe in myself”
You think that you are not capable of acquiring wealth or becoming an entrepreneur. Ask yourself what it would take to be able to believe in yourself. What knowledge would you need to acquire? Who's help or mentoring would you need? What other obstacles am I facing and how can I get to: "YES!" And start 1 step at a time and keep layering. Before you know it, you will have boosted your self-worth and retrained your subconscious mind.
“Rich people are greedy and selfish”
Another common mindset block is the belief that rich people are greedy and selfish. This can make us feel like we're not supposed to have a lot of money because it's not "moral." However, this belief is simply not true. There are plenty of wealthy people who are kind and generous.
Uncertainty
The fear of change and the unknown are such huge money blocks because it's human nature to want to make the uncertain, certain. And there's nothing that creates uncertainty quite like fear. Take the political landscape as an example.
Uncertainty is all around in the wealth-building arena, especially the stock market. That's why it's important to do the work required to get as close to 100% certainty as possible, without disrupting your ability to act when opportunities present themselves. This comes with knowledge and experience, both of which you won't get unless you start. Every day builds on the last, it's a lifelong practice.
If you're struggling to overcome your money mindset blocks, there are a few things you can do.
Educate yourself about personal finance and investing. There's a lot of misinformation out there about money, so it's important to get your information from reliable sources.
Talk to a financial advisor or coach who can help you identify and overcome your money blocks.
Do the work! Mindfulness, meditation, and self-development are amazing tools to crushing your personal finance game and overcoming your money blocks.
Make a plan! Having a specific plan for how you're going to save money, increase your net worth and reach your financial goals can help you stay on track and make progress towards becoming wealthy.
All of these money blocks can be overcome by changing the way you think about money. Start by taking some time to examine your beliefs and see if they're really true. Are you really bad with money? Do you really not have enough to save? Once you start questioning your beliefs, it will be easier to let go of them and start moving forward.
Take some time to develop a positive relationship with money. Start by tracking your spending and creating a budget. This will help you get a better handle on where your money is going and what you can afford to save. Once you start seeing your progress, it will be easier to stay motivated and keep working towards your financial goals.
Investing can be scary, but it's one of the best ways to grow your wealth. If you're not sure where to start, there are plenty of resources out there to help you learn about investing. And once you get started, it's really not that complicated. If you don't know where to start, here's my FREE 10-Step Guide to a Financially Free Life.
The most important thing is to take action and get started. The sooner you start working on overcoming your money mindset blocks, the sooner you'll be on your way to financial success.
