Whenever I tell people I’m a financial educator, the most common response I receive is: “I’m so glad someone is doing that work; I’m no good with money.” The first few times I received that response I was so startled by it that I just paused and moved on with the conversation. Now I’ve started to ask people: “Why do you think that?” Often, they are just as startled by this response. Usually it’s something they have never questioned. Yet, this belief is usually holding them back from making the best of their life with money because they have already convinced themselves they can’t do it.
Below you’ll find six common limiting beliefs about money. They can hold us back from using our money to its highest potential, asking for the amount our work is really worth, and/or reaching our biggest financial goals. Let’s unpack why these beliefs are harmful, how to turn that limiting belief into a positive one, and figure out where to start to overcome the block it's placed on you.
“I’m not good with money.” This is the most common limiting belief I hear -- and it’s usually rooted in a place of shame. Perhaps they were told at an early age that they were careless with money, or they got into debt earlier in life and are still trying to dig their way out. Unfortunately, this limiting belief often becomes an excuse to remain in debt, spend more, and not reach any big financial goals. The truth is, no one is naturally good with money. It's a learned and practiced skill. Patience and perseverance are more important than skills with numbers or spreadsheets.
Replace with: I can have a better relationship with money.
Starting point: Set just one goal: it might be paying off credit card debt, saving for retirement, or building up a short-term emergency fund. Visualize your end goal and begin making a plan. Every step you take, no matter how small, can help you build confidence. Not sure where to start? Begin with this financial audit.“I’ll never get out of debt.” This belief is often used as an excuse to not make a plan and sometimes even to accrue more debt. Guess what? If you don’t make a plan to get out of debt, most likely you never will. Stopping the cycle of debt takes intentional action. Debt can also hold us back financially and psychologically from taking other steps forward in our financial lives.
Replace with: I choose to get out of debt.
Starting point: If you are still accruing debt, step back and see what changes you need to make to stop the cycle. This will likely mean making some adjustments so you can live below your means. Next, take a closer look at your debt: the amount you owe (principal + interest), interest rate, and minimum payment. Often the details of the debt are actually less scary than what you’ve built up in your head. When you’re ready, make a plan to repay it. These articles can help you with the repayment process for credit card debt or student loan debt.“Money is a necessary evil.” Money is nothing more than a tool that can be used for good, bad, or neutral purposes. Believing that money is evil may mean that you avoid focusing on or dealing with financial reality, often to your detriment. You may also avoid asking to be paid what your work is worth because you don’t want more money in your life, stagnating your financial growth and stopping your wealth potential.
Replace with: Money is a tool I can use to create a fulfilling life for myself and others.
Starting point: Identify a few people you know who are using money for good purposes. Every time this belief comes up, bring them to mind.“Wealthy people are selfish.” This belief can not only be damaging to you but also to your relationship with others. Personally, it can prevent you from saving up for big goals you have like your emergency fund or retirement. You also run the risk of coming across as judgmental or self-righteous.
Replace with: There are selfish people at every income level. More wealth can create an opportunity for more generosity.
Starting point: Imagine: What would you be able to do if you had more wealth? Build up your savings so you were financially secure and could focus more on those in need? Make a greater impact with a cause you care about? Work less and potentially spend more time serving others?“If I had more money, things would get better.” While money can buy happiness up to a certain level, having more money isn’t going to solve all of your problems. And, even when people with this belief do get more money, often the situation doesn’t change.
Replace with: I can use the money I have today to create a fulfilling life for myself and others.
Starting point: Instead of waiting for “someday” when more money will come in, take a step back and ask: “How am I using the money I have for its best and highest use? Am I connecting my money and my values? Am I tending to my needs today as well as my goals for tomorrow? Are I spending, saving, and giving with intention?”“Someday I’ll make that goal happen.” “Someday” isn’t a timeline or a plan. While it can be fun to dream about the future, if you aren’t putting action behind it that vision isn’t likely to come to fruition.
Replace with: I plan to accomplish my goal by [date].
Starting point: Sit down and make a timeline for your dream. Then, make a financial plan to help you accomplish that goal by the timeline. Tell as many people as you can about this timeline so you have the accountability to make it happen.
If any of these money beliefs particularly resonate with you, I encourage you to take the time to unpack where this belief came from. Figuring out the origin of the belief can often help you to demystify it and replace it with a belief that’s more generative to your well-being. Want to dig deeper? Choosefi has a great article to help you overcome negative money beliefs.
What negative money beliefs have you held on to? Let me know below!