Are Money Beliefs Holding You Back
Hello All,
I recently had a conversation with someone who felt like her business efforts were being hampered by her limiting beliefs about money. She had identified that these beliefs were related to her upbringing which reinforced frugality borne of a scarcity mindset (see below).
This resonated with me as I had never consciously thought about it before. The idea that I might be hindering the success of my business not due to the reality of my financial situation but due to deeply ingrained beliefs rooted in societal norms, past experiences or simply a fear of the unknown.
I thought it would be useful to explore some of the beliefs around money that hold us back.
Perhaps the most common limiting belief is that money is inherently scarce. Many of us believe that there is a finite amount of success available and that money is hard to come by. If you believe that you have to save everything you earn rather than reinvesting it in your business, it becomes difficult for you and your business to grow and thrive. This is rooted in our fears about our abilities and ultimately, self worth.
Another belief is that one must be working constantly to earn money. Chris Williamson, who has a Podcast called Modern Wisdom, writes about a “productivity debt” in his latest newsletter:
“Many people (by which I meant me) seem to feel as if they start off each morning in a kind of "productivity debt", which they must struggle to pay off through the day, in hopes of reaching a zero balance by the time evening comes.
Few things feel more basic to my experience of adulthood than this vague sense that I'm falling behind, and need to claw my way back up to some minimum standard of output.
It's as if I need to justify my existence, by staying "on top of things", in order to stave off some ill-defined catastrophe that might otherwise come crashing down upon my head.
And make no mistake: paying off your imaginary productivity debt completely – in other words, working so hard and so efficiently that you no longer feel like you're falling behind – is literally impossible, not just gruelling and unpleasant.
In the modern world of work, there's no limit to the number of emails you might receive, the demands your boss might make, the ambitions you might have for your career, etcetera – so there’s no reason to believe you’ll ever get to the end of them.”
Then there is the belief, held by many small business owners, that they aren't "good with money,". Of course, if you think that you aren’t good with money then this becomes self perpetuating. This belief arises from a lack of education about money and a mindset that is reinforced to us often during our childhood. To solve this problem, I think one has to engage with the fear, understand where it is coming from and know that being good with money is a relatively easy skill to acquire.
Finally, there is fear of failure that is inextricably tied to risk. This limits small business owners from making decisions that could lead to growth and innovation in their enterprises. One certainly wants to be prudent and carefully weigh the pros and cons of a costly and/or risky initiative, but it is useful to recognize that failure is an inevitable part of learning and growth. Obviously, you want to be able to know that you can pay for your rent and other necessities, but beyond this, your capacity to take on risk is often greater than you think.
The most important first step to limiting your limiting beliefs :) is to be aware that you are holding them in the first place and that they are often, quite simply, irrational. Once you recognize this, you can begin to challenge and change them.
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