This is Why You’re Broke — Your Mindset Sucks
Mindset is a powerful thing, especially when it comes to finances. It could be the reason why you’re broke.
In the personal finance space, there’s a lack of addressing mindset. We address time and how we spend it. Money and how we spend it. But not how our brain power is spent. Our mindset should be a top priority when discussing money and wealth.
With being broke, other things come into play like how much income you make or how much debt you have but ultimately, if you have a negative mindset towards money, then you’ll likely struggle with money.
A Brief History About Me
My money story isn’t the best but it’s not the worst. My mom was a single mother working multiple jobs raising 3 kids. Me and my two older brothers. We had everything we needed. A roof over our heads, heat, water, and food. All the necessities and a lot of toys!
We lived in a 3 bedroom, 1 bath house, less than a 1,000 sq. ft. in an okay neighborhood. It wasn’t fancy but it wasn’t infested with gangs like other neighborhoods nearby. I had friends from school in nicer neighborhoods so at a young age I knew there was more and I knew there was better.
In terms of money, I recall a few incidents. We had to decide between buying a family computer or taking a family vacation. We couldn’t have both. Another time we had to decide between going up north for my soccer tournament/vacation or moving into a bigger house.
As much as I loved to play club soccer, I knew it was unaffordable and decided I didn’t want to play anymore when I got older. I also knew my mom couldn’t afford to send me to Europe for my AP French class trip in high school, so I didn’t bother to ask.
But did I think money was bad or evil or not meant for us? Nah. We just didn’t have enough of it and I thought it was because my mom was single. “Money doesn’t grow on trees” Mom would say.
As I got older, at 16 I started working. I realized that I could make as much money as I wanted, depending on how much I worked. I could have fun with money and in college, it opened doors and opportunities for me that I didn’t have when I was not working. I loved money once I began earning it and quit college after two years so I could work full-time.
I thought money was easy until I got into debt and wanted to get out of it. I read book after book after book until it hit me. While my money management skills weren’t the greatest but improving, I realized most importantly that I was exercising a broke mindset.
What’s Your Money Story
Have you ever thought about what your money story is? Did you grow up in a household living paycheck to paycheck? Do you feel a certain way about people who have money, like jealousy or anger? Do you think money is the root of all evil?
That’s a negative mindset towards money and you will struggle with money until that changes. Even if you have a high income and no debt, you will be miserable because of the story your mind is telling you.
I personally think money provides opportunities and is an abundant source, but I had to learn it because everyone I group up around didn’t feel the same way.
The Broke Mindset
Having a broke mindset is best described through examples. If you’ve ever thought any of the following, you’re exercising a broke mindset:
“I don’t make enough money”.
“If I made more money, I could get out of debt”.
“I don’t have the time…”.
“I’ll worry about it tomorrow…”.
“Money is hard and confusing”.
“I feel like I don’t have control over my money”.
“It’s the government, the state, or ‘their’ fault”.
“Why can’t I stop spending? I’m a loser”.
“I keep making mistakes with my budget. I’m an idiot”.
“I don’t want to deal with it…”.
“I don’t have enough ___________”
If any of this sounds familiar to you, you’re not alone. I’ve heard these sayings from individuals and I’ve said a few myself.
Be More Positive
A friend I played soccer with told me often to be more positive. “Just be more positive, Shera!” she’d say with a smile. This message didn’t really hit me until a few years ago once I dove into becoming a money coach. A positive mindset doesn’t just go hand in hand with money but I’ll stick to the topic of money for now.
So how can you be more positive?
- Educate yourself on mindset and money. Some books I recommend (to name a few) are 1. Mindset: The New Psychology of Success by Carol Dweck. 2. The Psychology of Money by Morgan Housel, and 3. Success Through a Positive Mental Attitude by Napoleon Hill.
- Understand that personal finance is easy. You don’t have to be smart with math like most people think. There’s no trigonometry needed to understand money.
- Accept that you have control over your money. No one else. You make choices every day with your money and are in total control.
- Learn to say no to spending your money on things you don’t need. Remember, you are in charge of your money. Your money is not in charge of you.
- Stop comparing yourself to others. Take a social media break because most of those folks showing off are in debt to look that good.
- Learn from past mistakes. Understand them, accept that they happened, forgive yourself, and move forward.
- Dream a little! Imagine your best life and the things you can accomplish once you get your money right. Dream about how you would feel!
- Give to your favorite charity. Even if it’s just a little, what you put out to the universe, you receive.
The idea with positive thinking towards money, or in general, is to change your mind to a new normal. Just like how practicing soccer every day for years made me better over time, practicing a positive mindset towards money will also improve your relationship with money.
Practicing positive language to yourself about money will eventually become second nature. And as you eliminate your negative relationship with money, you will start to feel freedom and abundance.
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