One of the hardest things about being an entrepreneur is dealing with money. It seems like every day, there’s another expense to think about, and it can be hard to know if what you’re doing is right or not.
If this sounds like you (or someone you know), then don’t worry! I’m here to help by giving you some tips on how to determine whether your money mindset is healthy or unhealthy – and how to address any unhealthy money mindsets that might be holding you back.
Do you have an unhealthy mindset about money?
1: Feelings of Jealousy and Bitterness
When you see someone buy something you wanted but couldn’t afford right now, you experience a twinge of regret and jealousy. You notice how your friend takes her children on holiday for summer vacation meanwhile your family is struggling to keep food on the table. When you consider it, you feel frustrated and spiteful.
It’s understandable that you have these feelings. It’s aggravating to struggle with money when everyone else seems to be having such an easy time.
When you feel these types of emotions, acknowledge it; yet don’t dwell on it. Negative emotions do lasting damage and make it more difficult for you to improve your financial position because you’re too preoccupied with keeping records.
You also need to understand that everyone has their own path. Instead of feeling jealous, be grateful and thankful for yourself and those around you.
Don’t become a victim of envy. Instead, offer your blessings to those around you with what you’re able to do right now.
So, make yourself happy and thrilled for the friend who is taking her children on holiday, and acknowledge that you’ll be able to do so as well one day if you want.
When you it’s you turn take your trip you’ll have a friend to turn to, she will be able to offer advice and solutions once she gets back. It’s a win-win situation.
2: Are You Hoarding What You Have?
The word “hoarding” conjures up images of houses packed to the brim with useless items. But some forms of hoarding go unnoticed.
It’s possible that you have a clothes closet filled with outdated clothing because you’re afraid you’ll need them at some point. It’s also possible that you store things—even if they’re broken—because you think you’ll be able to find a use for them at some point.
This sort of hoarding does not impact your day-to-day life, but it has an influence on your relationship with money.
You’re subconsciously conveying to yourself that you don’t have enough and that you’ll never have enough. You’re instead closely guarding your stuff in the belief that you’ll always be short of cash.
So have a decluttering session. It might take a week or more, but go through each room, closet, and cabinet to see what you’ve been holding on to that should be in the trash.
After you’ve completed this the first time, set aside at least two sessions every year to repeat it.
When you tidy your home, you free up space in your mind as well as physically make room for new possibilities to arrive.
3: Not Investing in Yourself
Solopreneurs and small business owners often reach a standstill. Reaching a stage where you must first invest in yourself before investing in your business or life.
For example, maintaining a business with six figures in sales for two to three years without your revenue increasing substantially.
You know you have the potential to reach a million in revenue, but you seem to be stuck. You may join a mastermind full of a million-plus business owners to learn what they do differently, or you might just try to figure it out yourself with Google and YouTube videos.
Another example is if you’re a motivational speaker and you’re only getting booked for little events. You want to get booked out by larger event.
You have a few options: You may continue to struggle for years, trying to DIY it. Or you could invest in yourself, by getting help to expand your public speaking business, through hiring a coach or booking a session with a speaker consultant.
The first step in improving your financial situation is to recognize that you’re dissatisfied with where you are. Once you’ve done so, financial doors will begin to swing open for you, and you’ll have a better connection with money.
Investing in yourself is critical to your development, so make sure you don’t get hung up by investing in the proper courses and programs for your progress.
4: Negative Self-Talk
Negative self-talk can destroy your financial future if you don’t check yourself and adjust your self-talk.
If you’re guilty of any of the following statements, you’re engaged in a negative self-talk habit that is harmful. By telling yourself these lies (and yes, they are lies) you’re telling yourself that you believe these things.
- “I’ve never been good with money.”
- “I hate budgets.”
- “I’ll never be a 6-figure earner.”
- “My market won’t pay premium prices.”
What you visualize and believe is what becomes true.
Tell yourself that you don’t have a knack for money, and you won’t. Think budgets are unpleasant and restricting, and you’ll avoid making one. Tell yourself you can’t make a six-figure salary; you won’t be able to.
It’s not “the secret.” It’s a scientific truth. This is known as a self-fulfilling prophecy, in which we act as if something is true, which leads to poor performance because we believe it to be so.
You will not do the things that 6-figure business owners do if you tell yourself you’ll never make a revenue of over $10,000 a month.
You won’t work to develop your mailing list ( “Nobody reads my emails anyhow”), you won’t improve your coaching fees ( “It’s not like I’m some top-earning coach”), and you won’t create a brand that is worthy of a six-figure income ( “A lovely brand isn’t necessary at this stage”).
On the other hand, if you act and believe as if you already are a six-figure earner, you’ll approach your business quite differently. You’ll be more confident. You’ll offer a distinct brand to your potential clients. You’ll go out of your way to contact with people who can and will pay your higher rates.
Combating Negative Self Talk
The first step in overcoming your bad self-talk is to simply acknowledge that you engage in it. Every time you notice yourself making a negative statement, check a mental box.
Make a list of the ones that come up most frequently for you, and if you can, figure out where they originated. If your mother constantly criticized you for your financial behavior, it’s likely that your “I’m no good with money” belief was formed at that point in your life. It’s time to reverse that ideology.
Take a minute to recall 5 times when you were excellent with money the next time you say to yourself, “I’m terrible with money.” Perhaps you paid off your credit cards or prepared for a down payment on a house.
Rephrase your self-talk to, “I used to be bad with money [if that’s true], but now I make smart choices to achieve my goals.”
Positive self-talk, just like negative self-talk, has the potential to become a self-fulfilling prophecy. Your business finances will improve if you reframe your perspective.
The Key to Overcoming an Unhealthy Money Mindset
It’s time to change your unhealthy mindset about money. You deserve more than just a paycheck that barely covers what you need.
This blog post has covered how to spot an unhealthy money mindset and have given you tips about overcoming an unhealthy money mindset.
I want to help you get past any feelings of jealousy, bitterness, hoarding what you have, not investing in yourself and negative self-talk so that your financial future will be brighter. Trust me – it’s worth the effort!
We all have our own unique challenges with money, but it’s important to understand the mistakes we make in order to be able to overcome them.
There are common pitfalls that most new entrepreneurs make. If you don’t want your financial life dictated by fear or jealousy of others, start changing your life today by downloading my FREE Money Mistakes Report below!