This Is What Is Keeping You Broke
If your goal is to have financial freedom, you not only have to create multiple streams of income, but you also have to create a mindset that believes you can create the lifestyle that you want for yourself.
It was only a year ago that I was working in a corporate company, more miserable than ever. I believed that was the best I could get.
Now, I work for myself; I’m generating an income that inspires me and lets me have flexibility. I’m nowhere near where I want to be yet, but I’m significantly better off now than I was before.
If you want financial freedom, and you’re tired of being broke or frustrated with your lack of funds, but you don’t know how to get out of the situation you’re in, maybe you need to take a look at how you view money because it might be what’s holding you back.
#1 — You believe money doesn’t solve problems.
You’re right; it doesn’t solve problems, but it does solve money problems, and the majority of people struggle because of financial issues.
Think of it this way, if you’re someone who wants to lose weight, eat healthy, hit up the gym, but you can’t afford a personal trainer, you’re unable to spend the extra money on healthy foods vs. processed, and a gym membership is too expensive — doesn’t that come out to be a money problem?
You have the desire, you have the drive, but it all boils down to the fact that your bank account doesn’t have the necessary funds.
So instead of trying to figure out a way to make more money or pulling back from other things, you stay stagnant because, in your mind, money doesn’t solve problems, so why go out of your way to try and make more of it?
Steve Siebold, author of How Rich People Think, says,
“Money solves problems. The average person has been brainwashed to believe rich people are lucky or dishonest. Money doesn’t guarantee happiness, but it does make life easier and more enjoyable.”
Instead of looking at money as this vile thing that you can’t have and you “don’t want because it won’t solve anything,” look at it as a tool.
One you can utilize to open new doors, experience things you otherwise couldn’t, and a way for you to live just a little bit easier.
#2 — “It’s hard to get rich these days.”
If you actively believe you’ll never make good money, you likely never will.
Alex Matjanec, co-founder of the finance site MyBankTracker.com says,
“The truth is that getting rich has always been difficult unless you were born into money. But if your goal is to get rich, you need to readjust your mindset.”
Naval Ravikant, entrepreneur, investor, co-founder, chairman, and former CEO of AngelList, says,
Everyone can be rich. We can see that by seeing that in the First World, everyone is basically richer than almost anyone who was alive 200 years ago.
Two hundred years ago, nobody had antibiotics. Nobody had cars. Nobody had electricity. Nobody had the iPhone. All of these things are inventions that have made us wealthier as a species. Today, I would rather be a poor person in a First World country than be a rich person in Louis the XIV’s France. I’d rather be a poor person today than an aristocrat back then. That’s because of wealth creation.
The engine of technology is science that is applied for the purpose of creating abundance. So, I think fundamentally everybody can be wealthy.
Making good money isn’t easy. It’s not easy to achieve your goals and aspirations, but it’s not impossible. Just take a look at all of the people who have made it to the place that you want to be in.
By continuously telling yourself you can’t become something because it’s hard, you’re only putting limits where they don’t belong.
#3 — “There’s only one way to make money, and THIS is it.”
“The world’s wealthiest people didn’t become successful because they were coloring inside the lines or doing what everyone thinks they’re ‘supposed to do.” — Michelle Luchese, co-founder and chief product officer of wedding band company Manly Bands.
I had this mindset growing up; I thought the only way to live a comfortable life is if I did things the traditional way, i.e., go to college, major in tech or something of that nature, and suffer in a cubicle for 8 hours a day.
I did that. I worked in tech; I sat in the cubicle, I commuted 2+ hours a day on public transport because have you ever been in Seattle traffic? And I was beyond miserable.
I was doing what everybody else said I should be doing to make money, and by the end of it all, I was constantly unsatisfied and unfulfilled. How else can I make money if not this way? I wondered.
I’m coloring outside the lines right now, making an income doing what I want to do, in random places like coffee shops, through sources I never thought possible before, such as social media, videos, and writing.
You need to figure out what works best for you, what you’re good at, and capitalize on it. Don’t feel bad if it’s not something traditional or the standard 9–5 job.
#4 — You penny-pinch.
“Invest in yourself by learning a skill you can monetize. If you’re always sharpening new skills, you’ll make incrementally more money. That’s real compound interest. You can’t save your way to wealth, but you can educate yourself there.” — James Sixsmith, founder, and CEO of Trade Context.
When you focus so much on how much you can save, you start to lose focus on how you can increase your cash flow. Penny-pinching causes you to sacrifice your happiness, and you can only cut so many costs; meanwhile, there’s no ceiling to how much you can earn.
When you successfully learn to cut costs, you start to look for a way to cut more costs. If you shift your focus to learning how to boost your income and you begin to see growth, you’re inspired to boost your income even more.
Income growth will give you the freedom that frugality can’t.
There are people out there who refuse to spend a few dollars on a cup of coffee because it’s too much money.
There are also people out there who don’t really care about spending a few dollars for the convenience of being able to get a cup of coffee in the middle of the day because their focus isn’t saving their money; it’s growing their money.
#5 — “I’m never going to understand how to invest, so why even try?”
My partner started trading and investing when he was younger, but he got more serious about it a year ago, and like most people, everything he would try to teach me would go in one ear and out the other.
I just thought to myself, this isn’t something I’m even remotely capable of, so why try to learn?
“If you’re willing to put in a little bit of effort to learn the basics and power through the initial confusion or frustration, you can end up earning money you’d never see otherwise. Investing is a great way to put your money to work for you.” — Andrew Schrage.
It’s not easy, but it’s also not as difficult as it seems if you learn to use the right approach. I started listening to podcasts of people I look up to, and they started talking about trading and investing in a way that was very easy for me to understand.
In Ramit Sethi’s book, I Will Teach You To Be Rich, he writes,
“Imagine one day you woke up, and you had enough money in your accounts to never work again. Your investments were generating so much money that your money was actually producing more money than your salary. Money makes money.”
I’m not telling you to take all your money and drop it into Bitcoin or Tesla, I’m also not saying to become an investor this very moment and quit your job.
I’m saying that not taking the time to learn the basics and gain an understanding of how you can utilize this will prevent you from making money.
At the end of the day, when your money is in the stock market, it adjusts with inflation over time, which makes it worth more by simply existing in the marketplace.
Whereas if it sits in your bank account, it just gets used up.
Maybe it’s because I grew up without money, and I know the challenges that you face when you don’t have a good income coming in.
Maybe it’s simply because I don’t want my kids to struggle, or maybe it’s because I want to live in a way that provides me with opportunities instead of constant challenges.
Regardless, the moment you stop looking at money as the enemy, and you start looking at it as a tool to get you to where you want to be, that’s when you’ll start seeing more of it.