Avoid These 5 Money Mindsets for Better Financial Well-Being

you have increased your income yet you're still living paycheck to paycheck everyone around you seems to be so far ahead and you feel like you're falling behind oh and you're constantly broke I can totally relate as that used to be me as a self-proclaimed shopaholic in my past life as well before I discovered the power of mindset so today I like to share with you five money mindsets that negatively impacted me and my financial well-being so you can avoid self-sabotage and self-destructive behavior when it comes to your financial situation hi everyone and welcome back to my channel my name is T and I help people become their authentic selves live intentionally and experience true wealth if that sounds interesting to you stick around so let's get started the I am B with money mindset was my go-to excuse for not taking accountability for my buying Behavior I had simply accepted the fact that I'm just bad with money and Justified buying more and more and more things with it every time when I purchase something out of my financial reach I just dismissed it as like well I'm just bad with money you know the 10th pair of jeans the eighth pair of sunglasses and the seventh nearly identical looking t-shirt you get the gist on top of that ordering food and excessive partying were the norm and obviously this Behavior just kept me broke the identity that I associated with it was this funny non Shalon fashionable girl that couldn't be bothered by anything for the longest time I didn't want to change in that aspect of my life and I just kept on spending almost the majority of my income on clothes take out and partying even though I had increased my income I still found myself saying things like I don't have enough money to travel and see the world I can't afford to take tennis lessons again I don't have enough money for a nutritious diet I don't have money to make more experiences and go on adventures it wasn't until I majored in finance and investment during my business studies in my mid-20s that I first realized that the self-destructive mindset I had created was holding me back from my financial achievements after taking some time to look inward I understood that the behavior was deeply rooted in my belief I'm B with money let me tell you that once I changed my mindset from well that's just me I can change it I'm back with money do I'm a constantly evolving work in progress and I can be good with money if I choose to I found true Financial fulfillment with this updated mindset I acquired new skills and also financial literacy which led to a transformation in my decisions and actions regarding money this shift also supported me in replacing old financial habits that no longer served me with healthier ones and establishing a sense of empowerment Independence and freedom and you know what changing my financial habits did not result in losing my identity one of my underlying core Fe fears when I considered letting go of that belief I realized that I have the control over the thoughts and the behavior of a funny nonchalant fashionable girl that couldn't be bothered by anything so I crafted a completely new personal definition for myself but without being broke anymore upon further reflection I realized that I actually indeed had enough money at some point however my spending Behavior was influenced by unhealthy habits and a scarcity mindset leading to complaints and negative emotions which leads me to my next point the scarcity mindset let me ask you five questions are you Harding money or resources rather than investing or spending money are you feeling anxious or stressed about Financial Security regardless of actual Financial circumstances are you constantly comparing yourself to others and feeling envious or resentful of those who appear to have more are you making decisions based on fear rather than rational analysis or long-term planning do you have difficulty in taking risks or pursuing opportunities for growth due to a fear of failure or loss if you can answer only one of these questions with a yes you most likely have a scarcity mindset and don't you worry you are not alone personally the scarcity mindset has been one of the most challenging for me to master and I'm still on an ongoing journey to rewire my brain daily and to be quite Frank I have met a person yet who wasn't affected by the scarcity mindset the reason is that I found that it can not only apply to finances but also to various other aspects of your life such as relationships business and many many more so what exactly is a scarcity mindset when you have a scarcity mindset you tend to focus on what you lack rather than what you have leading to feelings like inadequacy fear and a sense of never having enough why would you want to get rid of it well let me share from my personal experience when I have reached my dream salary if you suffer from a scarcity mindset you will carry your fear your inadequacy and your sense of never having enough with you no matter where you go no matter who you're with and no matter how much you earn while an higher income can be one piece of the puzzle it won't magically change your mind mindset or fulfill you on all levels the labels that we consciously or subconsciously assign to ourselves can significantly influence our mindsets your mindset is a set of beliefs that shape your understanding of the world and yourself and it's not just me saying this according to Stanford psychologist Carol DW your mindset plays a crucial role in determining your achievements and success and I've experienced firsthand that this concept definitely also applies to find finances similar to the I am bat with money mindset I used to label myself as a Shopaholic or a saver rather than a spender this identification as a Shopaholic or spender grew only stronger in my 5 years of Fashion retail constant exposure to the latest trends and substantial employee discounts reinforce the belief that I can be anything else but a Shopaholic that's just how it is for a long time I internalized the belief and developed the fear of letting go of the identity connected with the running completely on autopilot there is immense power in the belief you hold about your identity and my biggest realization came after I let go of that belief I actually discovered that identities are not mutually exclusive just because you're a Savor in some situations doesn't mean you can't be a spender in others and vice versa finding balance and being open to change where needed helped me grow and become more successful not only personal finance but in life overall with the rise of buy now and pay later Services I've personally witnessed an almost normalization of debt and it's not just that even though credit cards have been around for quite some time according to Forbes adviser at the end of 2023 the average credit card death per borrow was $636 about 10% higher than the year before reaching an all-time high both options buy now and pay later services or credit cards become even more detrimental when paired with the scarcity principle a psychological phenomenon that suggests that people place higher value on items perceived to be scarce especially in online business the scarcity principle is used as a marketing tactic to drive sales and create a sense of urgency among consumers these promotions include limited time or stock availability offers countdown timers exclusive access or one time only deals the combination of impulse buying and encouraging customers to take action tapping into their fear of missing out is a recipe for debt it doesn't stop here even before these marketing tactics I can speak from experience that discounts alone create an unexplainable dopamine Rush making you feel extremely good unfortunately only for a split second shortly after however you're left feeling stress and dissatisfaction again perhaps you have worked in Fashion retail but if not let me tell you that working in Fashion retail similar to healthare or Hospitality these jobs are thankless jobs where you work yourself to the Bone mentally and physically and just a little disclaimer here obviously there are nuances in these jobs that I have just mentioned before and I've also had extremely good experiences and great employers as well and it's just my personal experience experience so my go-to excuse for my borderline buying addiction was well I am saving money after all aren't I it got to a point where I was spending the majority of my income on clothes with my employee discount leaving me worrying about how to even afford proper food and new feelings of regret about why I even bought all these things in the first place the discounts and the Imports buying felt to me like a pacifier to to a child they consult me and let me escape from high stress and dissatisfaction even only for a split second yet all it did was keeping me in a vicious cycle of impulse buying and regret releasing more stress and worries in Psychology you call this phenomenon symptom displacement it happens when you try to deal with one problem or symptom but instead of resolving it the issue pops up in a different form or place and that's exactly what happened to me I falsely equated spending money with happiness or connection and tried to cope with stress by spending more money but all it did was creating new symptoms namely regret and worries caused by the attempt of coping with this stress I started being honest with myself discounts credit cards buy now pay later services are not actual money but only facilitators to deler layer worries once I broke free from this mindset which definitely required some introspection and a shift of my financial habits I could prioritize My overall Financial well-being over short-term desires as with all things in life balance is key and knowledge is power I'm not saying to completely refrain from discounts credit cards or by now pay later Services however do it with caution and intention as it may not always be in your best interest in the long run okay let me paint a picture for this one here you have just finished your delicious dinner and you're making your way to the couch to just relax a bit you are contently chilling on your couch perhaps with your purring cat on your lap and you enjoy the last sunrise coming through your windows before the sun sets Everything feels so peaceful you're content happy deliciously Blissful and think hey let me check my insta for a minute you see someone you know getting a promotion strangers buying a house being on an extravagant trip and having fancy dinners in a blink of an eye this wholesome feeling is gone suddenly you feel the pressure to keep up with everyone around you you feel like you're falling short because you're not doing the same you start questioning yourself if you're successful enough or if you're making the right Financial choices well you got caught in the comparison trap here's the thing what we see on social media or even in our circle of friends doesn't always reflect the full picture people might be splurging beyond their means or putting on a show for appearances and even if they're genuinely doing well financially it doesn't mean we're failing if our lives look different the comparison trap can lead to all sorts of unhealthy behaviors we might overspend to keep up with everyone even if it means to go into debt or we might feel bad about ourselves thinking we're not good enough as we're not hitting the same Milestones as others the key is to remember that everyone's Financial journey is different instead of comparing yourself to others focus on your own goals values and priorities it's about making choices that align with what's important to you personally whether that's saving for a dream vacation investing in your education or building a stable future for yourself when you step back from the comparison game and focus on what truly matters to you you can feel more confident and fulfilled in your financial decisions regardless of what anyone else is doing so I think these cautionary tales definitely serve to emphasize increasing your income is important as is changing habits accordingly budgeting and saving are essential too however equally important is your mindset I will be making more videos about how to become your authentic self and live life intentionally to experience true wealth so if you found this video helpful it would mean the world to me if you would give it a thumbs up hit the notification Bell as well as the subscription button and join the Community as it grows see you next time bye

Channel: Taje Bonrath

Views: 1,267

Keywords: bad money habits, money habits, habits that keep you poor, money mindset, personal finance, money saving tips, how to get out of debt, debt pay off, how to save money, investing, how to invest, how to save, how to get rich, abundance mindset, scarcity mindset, money habits keeping you broke, habits keeping you poor, debt free journey, how to build wealth, how to budget, save money, personal finance tips, build wealth, saving money, poor vs rich habits, money, dave ramsey

Id: a7caiwzjMec

Length: 14min 2sec (842 seconds)

Published: Tue Apr 16 2024