5 Money Mindsets That Are Keeping You Broke

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    5 Money Mindsets That Are Keeping You Broke

    1. Tess Wicks says:

      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!

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

    3. 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.

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

    5. 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. 🙂

    6. 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!

    7. MoneyAhoy says:

      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.

    8. TJ says:

      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….

    9. David Chen says:

      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!

    10. 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!

    11. James says:

      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.

      • Stefanie says:

        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.

    12. Trip says:

      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.

      • Stefanie says:

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

    13. […] Related Reading: 5 Money Mindsets That Are Keeping You Broke […]

    14. […] Related Reading: 5 Money Mindsets that are Keeping You Broke […]

    15. 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,!

    16. […] Stefanie O’Connell – 5 Money Mindsets Keeping You Broke […]

    17. […] 5 Money Mindsets That Are Keeping You Broke […]

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

    19. Paul says:

      Very nice article.
      Inertia – I’m a very habitual person so this one hits home. Setting goals doesn’t seem to work for me, at least most of the time. Setting aside funds before I “see” them is best for me.
      Scarcity – as you earn more you tend to spend more…so hard to put away any raises and keep living as you were pre-raise.
      Loss Aversion – I work with high net worth clients and have many difficult conversations of ‘staying the course’ during downturns. Trying to time the market is nearly impossible and shouldn’t be a thought for long term investments.
      Anchoring – love hearing my wife tell me how much ‘savings’ is in her cart…

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