Did you start the new year determined to make some big life changes?
In a recent Student Loan Hero survey, two thirds of respondents had a financial regret from last year.
The most common regret?
- Not saving or investing as much as they wanted (34%)
- Followed by not paying off as much debt (25%)
- Then spending frivolously (20%)
Sometimes the best of intentions, to make a change, can be undone because you aren’t aware of your self-limiting beliefs that can hold you back from reaching financial success.
To help you do better this year, let’s start the beginning of your resolution journey by GAINING AWARENESS OF YOUR MONEY MINDSET.
Your money mindset is the sum of the attitudes and ideas you bring to a situation related to your personal finances. It’s the mental habits you have for thinking about and responding to any financial circumstance. And they’re usually based on your upbringing and previous financial experiences.
Below is a list of commonly held mentalities that can negatively affect your financial progress.
Fear of losing money
It’s has been psychologically proven that the pain of losing money is a stronger feeling than the joy of being rich. A fear of losing money can also represent a fear of failure.
With investing, there is inherent risk. However, you should not fear losing, but instead gain lessons from failures and turn those lessons into wins. The pressure of failure can cause you to work harder to succeed.
Action: You can mitigate your fear of losing by educating yourself and diversifying your assets so that you are not overly committed to just one strategy.
This happens if you believe that only negative things will happen and live in a state of worry or panic. Cynicism is created by unchecked doubt and fears.
Action: Instead of being critical and assuming the worst in others. Learn to analyze situations so you can make educated decisions. Performing this analysis will open your eyes.
You can be very busy and still be lazy. You may be busying yourself to avoid doing something that you’d prefer not to face. A.k.a. procrastination.
Action: Beat laziness by identifying what motivates you. Find something that causes you to desire something better. As a result, you’ll start to take action. For example, imagine “What would life be like if you never had to work again?”
Our lives are a reflection of our habits more than our education.
Action: Make of list of the habits that you feel are holding you back and start creating a plan to change them. Here’s a list to get you started.
Arrogance is ego plus ignorance.
Action: Admit to yourself if you are ignorant about a subject and decide to start educating yourself by finding an expert in the field or a book on the subject.