SIX WAYS YOUR UNCONSCIOUS MONEY BELIEFS HOLD YOU BACK

Growing up, we are taught that developing a significant income is the ultimate goal in life.

To study, work hard and secure a high-paying job is the holy grail of success.

?As it turns out, sourcing a tremendous income only gets us part of the way to the promised land. Rather, retaining and growing that wealth is the biggest challenge with which we are tasked.

Over the years I have met several individuals and families who, despite earning enviable incomes, struggle to build upon that wealth. Whilst they have the capability to bring in significant cashflows, their unhealthy relationship with money means that their outflows often exceed their inflows.

In many cases, we can trace this outcome back to shared family relationships with money. These absorbed experiences form our behaviours and shape the money outcomes we perpetuate.

Let’s unpack the six most common mantras I’ve witnessed from individuals facing these challenges:

1.????“You only live once / you can’t take it to the grave”

This can be an easy excuse to puncture our willpower by spending today and never thinking about tomorrow. Of course, we all have our weaknesses. However, to live by this slogan continually is to give ourselves a get-out-of-jail-free card when it comes to being a responsible saver. If you find yourself reciting this one frequently, it’s time to ring the alarm bell.?

2.????“Debt is bad for you”

An unhealthy relationship with debt likely means that you have never been educated on the difference between good debt and bad debt. Possibly you have been burdened by the wrong type of debt in the past, creating traumatic associations with it.

Ideally, no one enjoys the idea of being in debt, but unless you are building a highly successful business or diligently saving 90% of your income - highly unlikely in Sydney - it’s vital to learn how to use debt and not be afraid of it.

Although the notion of debt can create negative emotions, financial education will guide you past these fears and empower you to make informed decisions.??

3.????“Investing is for the rich”

In a world where the rich are glamorised, it’s easy to fall into the trap of feeling like their status is unattainable to you. This in turn leads to financial inaction.

The belief that investing is for the rich is built on solid foundations. The truth is, the rich often have solidified their position through investing. However, the missed trick is that most people start by investing very little and build their way to good fortune.?

4.????“God will take care of my situation”

Yes, I have heard this one. I want to meet this God! If the deities from up above have comfortably provided you with access to tools and resources in life to build wealth, yet you squander them, then surely there is little more opportunity that God can provide you with to achieve financial security.

5.????“My parents lost a lot of money investing, and I am scared”

This scenario can create severe trauma for the children of affected families and their relationship with money. The important remedy is understanding what happened and the alternative actions you could have taken if you were in your parents’ shoes. Only with this approach can we step beyond the trauma and learn from the mistakes of the past.

6.????“Just have a go! I have nothing to lose” "I don't deserve to be rich"

This gambler’s mentality is as dangerous as any of the others. Typically we will see an individual with this mindset be good at making money but will perpetually find a way to lose it. There is a deep-seated feeling within the individual that informs their stigma as unworthy of keeping wealth. An individual afflicted with this mentality may find themselves making money easily, yet subconsciously feel they don’t deserve such wealth.

?These are just a selection of examples; everyone will have their own unique relationship with money based on their experiences and those passed on generationally through their family.

It is important to unpack these financial mindset blockers, particularly where you feel these subconscious behaviours are driving poor outcomes. In some instances, approaching a psychologist may be the best way to delve deeper into the mindset aspects, whilst a financial planner can arm you with the operational tools to change the trajectory of your financial behaviours.

?

Neelan Sornalingam