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    5 Money Mindsets That Are Keeping You Broke

    1. Norman

      July 19th, 2016 at 6:20 pm

      What an insightful post! I especially like your point on anchoring. I think we get so conditioned by external factors when it comes to how much we value something or how much we should pay for something. Thinking about opportunity cost is definitely a great way to assess the value of something before we make a purchase.

    2. Stefanie

      July 19th, 2016 at 7:07 pm

      Another way I like to think about things is the amount of hours I would have to work to earn that amount. That gets me grounded in the true value REAL quick 🙂

    3. Tess Wicks

      July 20th, 2016 at 8:40 pm

      That Forbes quote: “staying employed at the same company for over two years on average is going to make you earn less over your lifetime by about 50% or more.” … maybe us millennials and our 2.5 years or less retention rates are really just us outsmarting the system 😉 Great article Stefanie!

    4. Stefanie

      July 22nd, 2016 at 1:16 pm

      Right?! Millennials are making the most of their careers by staying on the lookout for new opportunities.

    5. Sarah Li Cain

      July 25th, 2016 at 6:12 pm

      Yup, I’m the gal that hates budgeting! I’ll definitely try building from zero and see how it goes!

    6. Stefanie

      July 31st, 2016 at 1:03 am

      It’s a pretty powerful mindset switch. Let me know how it goes!

    7. Natalie @ Financegirl

      August 3rd, 2016 at 12:04 pm

      I think having a scarcity mindset is the most crippling. If you don’t understand how to think big, create your own destiny, and become wealthy, then you never will. It all starts with your mindset.

    8. Stefanie

      August 3rd, 2016 at 12:11 pm

      Absolutely, scarcity is one I think people overlook too, which is too bad knowing how powerful it is.

    9. Steven McMillian

      August 19th, 2016 at 11:38 pm

      I’m guilty for inertia. I decided recently to stop being lazy with my finances and start doing something about it.

    10. Stefanie

      August 19th, 2016 at 11:40 pm

      We’re all guilty of one (or more) of these 🙂

    11. Investment Options

      October 2nd, 2016 at 12:26 pm

      I think losing money is the biggest fear people have which is stopping them from making more money. I have invested most of my earnings in stock market. Though I have not had a good returns so far, but I believe, in a longer of time, the return I would get would be huge compared to keeping the money in bank.
      We should not be lazy and should keep a good track of things, and where the majority of the money is getting drained. We can only then be able to take some action and save every penny. 🙂

    12. Natalie @ Financegirl

      October 5th, 2016 at 5:23 pm

      Scarcity thinking is the one I connect with most here. It’s SO toxic – not only with money but with other things, like career, leadership, business, etc. It’s really awful!

    13. MoneyAhoy

      October 6th, 2016 at 12:01 pm

      Loss aversion is a big one for me. It often causes me to approach investments or things in this area from a “shoe string” budget mentality vs. taking more of a risk to increase the chance of seeing higher rewards.

    14. TJ

      October 9th, 2016 at 4:00 pm

      Inertia has always been my struggle. I could try other things, but it’s easy to keep doing the same thing.

      Of course, sucking it up and doing the same thing is what allowed me to grow a portfolio to the point where I have the confidence to take some risks, so maybe it’s not all bad, but at the same time, if I had more confidence to take risks earlier, maybe I would have found fulfillment earlier in life rather than still being on that journey….

    15. David Chen

      October 21st, 2016 at 12:12 am

      Your mind really does trick you sometimes when it comes to what to do with your money. Inertia is definitely a struggle I have dealt with, but have been working to get out of that mindset. Thanks for sharing your knowledge!

    16. DC @ Young Adult Money

      October 24th, 2016 at 11:55 am

      Scarcity mindset is a big one. I feel like people are really taught to have a scarcity mindset, and I sometimes look at different business opportunities and think “there is no room here, it’s too crowded of a space.” But really EVERY space is too crowded and there is always room for innovation. While I wont’ be revolutionizing the car industry anytime soon, Elon Musk’s success is one example that I draw some motivation from. Huge barriers to entry and deeply ingrained competition, yet look at him make a huge dent in the auto market and really I wouldn’t bet against him. And Tesla didn’t even exist that long ago!

    17. James

      October 29th, 2016 at 2:05 am

      Scarcity. I never let myself be in this situation. I always condition myself that I will have enough or more because this puts me in an advantageous situation and will give less stress over money.

    18. Stefanie

      February 7th, 2017 at 9:57 pm

      I have to admit I sometimes fall into the scarcity trap. (I think it’s because I take some bigger than normal $ risks as a biz owner). But it’s always paid off, so I’m getting better trusting in my cash flow.

    19. Trip

      February 7th, 2017 at 9:51 pm

      I really like the way that you structured this post. You explained each of these 5 mindsets clearly and then went into details about how to combat them.

      What’s so amazing about this list is that, for most people, it’s really one in particular that is holding them back from meeting their financial goals — not all 5. Sure, there are those that are being affected my two or three, but usually one of them is the overriding reason.

      Among my clients, inertia and loss aversion are the two holding them back the most. However, most of my clients are already good savers and are trying to learn how to invest, invest more wisely, or invest additional large sums of cash they’ve had sitting on the sidelines.

      For those whose goal it is to up their savings rate, present bias, scarcity, and anchoring tend to play a larger role.

    20. Stefanie

      February 7th, 2017 at 9:56 pm

      Interesting to think how different money mindsets come into play at different stages of wealth building – overspending vs saving vs investing. Thanks for sharing!

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    23. Jennifer | Contentment Questing

      March 21st, 2018 at 12:12 pm

      This is probably the best financial boog post that I have read to date. Our mindsets are a huge factor in determining our actions. Very detailed and insightful post,!

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      June 14th, 2018 at 10:04 am

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    26. Alaya@Hope+Cents

      February 25th, 2019 at 12:24 pm

      Great post, Stefanie. Love your insight and the real-world applications you provide. 😊

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