You know how critical Paying Yourself First is to your Financial Freedom. But there may be more times than you’d like to admit when you’ve let your financial goals fall by the wayside. While habit and commitment are part of the equation, your mentality about finances may be what’s actually hindering you from Paying Yourself First. With that in mind, here are some common money mindsets that get in the way of hitting your financial milestones:
Banking On What-If Scenarios
That giant windfall of cash. A potential inheritance from an aging relative. A huge promotion that will finally allow you to Live on What Remains and set aside some cash each week. Are you banking on a hypothetical what-if scenario to provide a cure-all to your financial woes?
The thing is, this mindset provides a mere illusion of solving your money problems. Financial Fitness now will help you make the most of any surplus that actually does comes your way. (We’ve all heard the horror stories.) Waiting on an unlikely rescue scenario holds you back from taking critical action today.
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Suffering From Deprivation Mindset
While you most certainly don’t want to deprive yourself from things you enjoy—you only live once, after all—suffering from the mindset that you don’t have enough to be happy encourages willy-nilly spending. In turn, you may spend more than you can afford to.
Instead, focus on your riches, both material and non-material. Whether that’s a fulfilling job you love, a mate who is constantly by your side or living in a part of the world that affords you opportunities to carve a path toward Financial Freedom. Focusing on what you already have helps you feel content. You’ll be less prone to buying what you don’t need, and you’ll find it easier to Live on What Remains.
Having An Entitlement Complex
An entitlement complex falls within the same line of thinking as feeling deprived. Thinking you deserve to buy that fancy gadget or go on that dream vacation to Tahiti before you have a Security Buffer just holds you back.
Once again, you shouldn’t deprive yourself of things you want. But you should make the effort to save for these luxuries only after you’ve incorporated them into your Freedom Plan. And you should always be able to pay in cash.
“I Can Have It All” Mentality
As the saying goes, “You can afford anything, but not everything.” Wanting the fancy car, designer clothes and expensive steak dinners every night spreads you thin. Spending too much on Lifestyle Assets leaves you with less for your Income Generator. That means Financial Freedom will take longer than you may want.
So, prioritize. If you enjoy fancy dinners, allocate for them in your monthly spend. But forgo other indulgences so you stay within your means. Remember: keep your financial goals top of mind, and pick and choose what you want to enjoy in life.
Thinking Others Have It Easier
Thinking others have more money or an easier time saving for whatever reason is nothing more than mere excuse that don’t do you any good. There will always be people born with a silver spoon in their mouths. This kind of thinking makes you feel powerless and hopeless.
To overcome this block, take a careful look at the resources, tools and capabilities you have before you. When you take stock of what’s available to you, you’ll find ways to generate income, create your Surplus and get to Freedom more quickly.
Unclear Money Goals
Not being clear with your money goals leads to lack of commitment. For instance, if you want to be Financially Free, when do you want to get there? What is your Freedom Number, and what do you need to do to reach that number. Being as specific as possible with your money goals, both long- and short-term, defines your Freedom Plan. You know what you want and how you’ll get there.
Identifying and understanding your particular money mindset (or mindsets!) will set you free to achieve your financial goals.
The views and opinions expressed are those of the guest author and do not necessarily reflect the views and opinions of MindShift.money.
image credit: Bigstock/PixelsAway
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Jackie is a personal finance writer and content marketer. She is passionate about telling money stories and spreading financial literacy to a mainstream audience.