Common money habits and beliefs that Might be Keeping You Poor.
Your beliefs, are they costing you?
“And my God will supply every need of yours according to his riches in glory in Christ Jesus”1
Our beliefs have a profound impact on our behavior and the behaviors that we display over an extended period determine the quality of our lives.
For example, if you believe that you can only hold a job on minimum wage, you would never attempt anything else. So truly changing your life is dependent on changing your beliefs.
If you have limiting beliefs, this process can help you change them to beliefs that better serve you.
Think about your response to these questions:
- Which belief do you want to change?You need to be able to see it to work with it effectively. So write it down. For example, one limiting belief you might have is: “I will never have more than enough money.” or that you “will always be carrying debt”.
- What has the belief cost you? Make a list of all the ways this belief has negatively impacted your life. Really think about it, because it helps to have as much negative ammunition to get rid of that old belief as you can get. Spend some time; it might even take a couple of days to get a complete list.
- What advantages has the belief provided you? Maybe believing that you could never be wealthy has allowed you to avoid taking risks. Or perhaps it has allowed you to work at a profession that’s easy for you. It might be hard to figure out what the advantages are, but they are there. Dr Phil McGraw would say that there are payoffs that are driving your behaviour. “Even the most destructive behaviors have a payoff. If you did not perceive the behavior in question to generate some value to you, you would not do it. If you want to stop behaving in a certain way, you’ve got to stop “paying yourself off” for doing it.”
- What new belief would you like to have as a replacement? For example, for the belief listed above, a new replacement might be: “I can make any amount of money I set my mind to.” Be thoughtful and develop a new belief that will serve you well in the future.
- How is the new belief better than the old belief? Come up with an emotionally charged list of ways in which the new belief will impact your life for the better. Consider how you would feel. What could you become? How would your lifestyle change? Would it help other people around you?
- How can you start demonstrating the new belief today? Following our wealth-theme, it might not be the right time to plan the interior of your private jet just yet! So what could you do right now? Make a plan to make more money? Perhaps start looking and ways to generate a second income, or passive income or even start looking for a better paying job? Maybe its time to consider changing career. Look for ways to put to use the money you already have? Even a small change can help the process.
Start Living Your New Belief
It might not be easy at first, but taking the time to complete the steps above will make it easier. Each day try to behave as if you hold the new belief. What would you wear? How would you speak? How would you view the world? How would you make decisions? How would you react to good news? Bad news?
While our behaviors determine the quality of our lives, our beliefs largely determine our behaviors. Beliefs are really the core to everything you do and become.
Just as there are beliefs that need to be changed, so are there habits.
There are habits that will make you rich, there are others that will stop you advancing financially and perhaps keep you poor. Habits aren’t always easy to break, but when you see the damage caused by these common practices, you’ll be motivated to get them out of your life!
Here are nine common money habits that can prevent positive progress:
1. First on the list is ‘Living Paycheck to Paycheck.’
It’s a common lifestyle that sees you waiting eagerly for the next payday, only to find the money disappears as quickly as it arrived. Too much month left at the end of the money? What you are doing is sacrificing tomorrow for today.
This cycle leaves no room for savings or investments, hindering your financial growth.
2. Facing Your Financial Reality.
Next up, ‘Ignoring Your Financial Reality.’
Turning a blind eye to mounting bills, increasing debt, or dwindling savings? That’s a surefire way to financial ruin. Acknowledging your financial situation, no matter how grim, is the first step toward turning things around.
3. Not saving.
If you pay everyone else first every month, there never seems to be anything left over to save. Pay yourself first, and then pay your bills with what’s left. Many employers can have earnings automatically deducted from your paycheck and put into a separate account. Save some money every month.
4. Carrying credit card balances.
No one can consistently invest well enough to offset credit card interest. Take a look at your last statement to see just how much your credit card is costing you. Depending on your interest rate and balance, it can easily be thousands of dollars a year.
5. Fifth, we have ‘Impulse Buying.’
Those unplanned purchases might seem harmless in the moment, but they add up over time, eating into your budget and savings. Planning your purchases in advance can help you avoid this pitfall. Letting the small stuff get out control. Take a close, honest look at how much the small stuff is hurting your bottom line. How much are you spending on fancy coffee in the morning? Do you go out to lunch every day? How about snacks? Magazines? A soda at the convenience store? Look at your bank statement to see what’s really going on. Small leaks can sink ships. Fix your leaks before they get out of hand.
6. The Importance of Having a Budget.
The sixth habit is ‘Not Having a Budget.’ Without a clear plan for your income, it’s easy to overspend in one area and neglect another. A budget gives you control over your finances and ensures every penny has a purpose.
7. Building an Emergency Fund.
Number seven , ‘Not Saving for Emergencies.’ Life is full of surprises, and not all of them are pleasant. Without an emergency fund, you’re just one unexpected expense away from financial disaster.
8. The Power of Investments.
The eighth habit is ‘Not Investing.’ Money that’s simply sitting in a bank account isn’t working to its full potential. Investments, whether in stocks, bonds, or real estate, can provide an additional income stream and help your wealth grow.
9. The Value of Financial Education
And finally, ‘Not Prioritizing Your Financial Education.’ Money management isn’t taught in most schools, but that doesn’t mean it’s not essential. The more you learn about finances and how you view them, the better equipped you’ll be to make wise money decisions.
Breaking Free from Financial Instability
In summary, beliefs can be challenging to change, as they’re frequently developed at a young age, so you might have lived in accordance with your limiting beliefs for a long time. However, with diligence and attention, they can be altered. Changing your beliefs will change your life.
Living paycheck to paycheck, ignoring your financial reality, not saving for emergencies, bad debt, impulse buying, not having a budget, not investing, and not prioritizing your financial education are all habits that can keep you stuck in a cycle of financial instability. But remember, beliefs and habits can be changed.
As you read through the lists above, think about your own money situation. Consider which habits and beliefs are having a negative impact in your life and resolve to eliminate them immediately.
By recognizing these detrimental behaviors and taking steps to correct them, you can break free from these patterns and start on a path toward financial freedom.
Remember, accumulating wealth and making change can take time, so it’s important to start as soon as you can.
It’s not an overnight process, but with patience, persistence, and a little bit of positive mindset know-how, you can transform your money habits, stop them from keeping you ‘poor’ and create a more prosperous future.
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