5 Money Mindset Blocks that are preventing you from making money
This post is going to be a bit unusual because I usually talk about how to invest and make money in the stock market but recently I’ve have been going through some big changes and struggles. I realized that I had to spend some serious time rewiring my brain’s attitude towards money and identifying my money mindset blocks.
If you have read my about page then you are probably aware that I don’t come from a wealthy family. My parents were not millionaires and I didn’t have endless amounts of money at my disposal. Instead, my parents worked REALLY hard to make enough money to cover our needs and I grew up hearing the typical: “Derek, money doesn’t grow on trees” or “We don’t have money for that”.
Christmas was really hard for me as a kid. I was very lucky that my parents sent me to private school back home (Venezuela) which really wasn’t cheap and I grew up studying with the rich kids. Guess what? Every Christmas, I heard of all the wonderful things that Santa brought to the other kids like the hot toys, computers and PlayStations. You name it, they got it. But me? I asked for just a couple of things and almost never got them! But why? I studied hard, got good grades, was kind to my parents and friends, I was really well behaved, I didn’t complain and I wasn’t demanding. So why didn’t Santa reward me too?!?! (Wink wink, you know why ;))
All this caused me to grow up believing that “I was not worth it” and that success was only for others and not for me. That whatever came easily to the other kids I would have to work doubly hard to earn. I believed that no matter what I did, people would not appreciate my hard work or reward me the way I deserved.
The stories and beliefs that we grow up with have a profound impact on how we behave, think, make and spend money and on how we value ourselves. Here are some of the negative beliefs and stories that we might think are true:
- Money is the root of all evil.
- I will never have enough money.
- If you love money, you are a shallow, self-centered & selfish person.
- Rich people don’t have time to spend with family and friends and they are always surrounded by leeches.
If you believe that all or some of the lines mentioned above are true, they are working against you. These beliefs are deeply rooted in your subconscious and will influence your actions towards money and how you make it.
For example: do you have a friend who wants to find the perfect significant other but is always saying “I will get hurt again”, “Love is not for me” or ” Men/Women are all the same”? And then they ALWAYS end up in an unhealthy relationship? Why do you think this happens? Because their subconscious believes that “Men/Women are all the same” and it will guide their actions towards fulfilling that belief, reinforcing once again that men/women are indeed all the same, even when it is not true.
Curiously, your brain is wired to win. So if you believe that money is hard to make, or that you will always be broke, then your brain will do everything in its power to make sure that you achieve these beliefs. What you believe, you become!
Are you still here reading this? AWESOME! High-five! So all this being said, I want to share five money mindset blocks that I had to identify and change in order to have a better relationship with money and become a better stock market investor.
1 – How do you talk about money?
The way we talk about money can have a huge impact on how we behave. We can’t have negative verbiage towards money and also expect that we can become financially free, it just won’t happen. Because I believed that money wasn’t easy to make, I ended up making the worst investing decisions. An example of this was a stock that doubled in one year. I knew it was an amazing stock because the fundamentals, financials and trends were perfect! But believe it or not, I lost money on a stock that doubled in a year.
Why? Because I had deeply ingrained beliefs that “Money is hard to make” and “Money doesn’t grow on trees”. So for an entire year I kept buying that stock high and selling it low. The problem was that my beliefs about money and the reality I was experiencing were in conflict. How can money not grow on trees and yet the stock market is making me money? That is simply not possible. Subconsciously I was sabotaging myself because my brain had to fulfill the belief that “money doesn’t grow on trees”. The way I did it was by buying a winning stock high and selling it low.
The status quo had to stay the same no matter what… Stop talking negatively about money, change your verbiage and say this mantra out loud many times until you are comfortable with it and it doesn’t feel awkward:
“I love money and money loves me!”
2 – Your money relationship/beliefs.
My parents taught me that there were 2 things that I can’t talk about with friends, religion and politics. So if I wanted to have healthy relationships with friends I should avoid those topics. But honestly, if you want to have a really awkward or uncomfortable conversation with a friend or significant other, talk about money instead. How much they make and how they make it…
Yeah, just thinking about it can make you feel uncomfortable, and this is a real problem. How can you feel good about having more money when subconsciously you feel awkward, dirty or ashamed about it?
Can you pursue a path of making huge amounts of money without feeling that you are a sellout?
How on earth will you get paid what you are truly worth at your current job if you don’t even value yourself?!?
Your relationship and beliefs towards money will greatly affect your decisions. For example, you might think that no one will pay a dime for your services, or that nobody can make a living pursuing their passion. These beliefs can prevent you from taking opportunities that will lead you to a better financial life. You might already have a million dollar idea but because you undervalue yourself, you won’t pursue it. You may think that “you have to be realistic, someone else probably has the same idea. So if they are not rich, it’s because it’s not a million dollar idea.”
Let me give you some examples of some “stupid ideas” that if their authors hadn’t pursued, they wouldn’t be millionaires:
- Melyssa Griffin: She was a broke English teacher living in Japan eating snickers bars for dinner because she couldn’t afford anything better. She started blogging and got really good at it. Now she is a coach that teaches students how to make money blogging. She made $1,152,662 in 2016, from her home with a team of 2.
- Pat Flynn: He was working as an architect and was working on the side towards passive income. Before getting married in 2008, he was laid off. Instead of finding a new job, he pursued his passion and created a podcast sharing strategies on how to grow online businesses. Long story short, he made $2,171,652 in 2017.
3 – You have to invest in yourself.
There are a couple of things that wealthy and successful people do that broke people don’t do. The first is to buy assets instead of disposable items. They invest in stocks or property to generate more income instead of just blowing all their money on dinners, clothes, etc (with the respective exceptions ;)). Secondly, they invest in themselves!
What do I mean by investing in yourself? Maybe you are day dreaming about becoming a Realtor but you don’t have the money to pay for the course and licenses. But instead of saving the money for it, you waste it on other things. You are setting yourself up for failure! Sorry for the tough love here!
Instead, if you want to pursue a new career but you are missing the education or skills, go out and invest in yourself! Read books, go to seminars, hire a coach, go to college, or even spend time with friends that know what they are doing and learn from them. But whatever you do, spend time improving yourself.
In the long run you will be grateful you invested in yourself and you will be greatly rewarded for doing so.
4 – Work hard like there’s no tomorrow.
Whatever you decide to do, just go for it. Do you want to work on your small business but you never seem to have the time or money? Or maybe the timing is not right so instead of taking action you keep going through life wondering when the stars will align and you will finally have all the tools to achieve your goal? The thing is, there will never be a perfect time, so if you want something, go and get it now.
The key to SUCCESS is to START before you’re ready – Marie Forleo
Friends and family may call you crazy and say that you aren’t fit or don’t have the skills to be successful in your endeavour. But here is the catch; they are speaking from their own fears and projecting them onto you. When you change your attitude you are also effectively changing your family and friends’ preconceptions and beliefs. Because if you can do it, then why can’t they? It will move them profoundly, but expect to feel resistance from them, it is normal.
People’s opinions are only dangerous if you accept that they are true and that you really can’t achieve your goals. Do you think that the Wright Brothers cared that they were called crazy and that their “flying machine” was impossible?
Thomas Edison didn’t stop when he failed 100’s of times as he was inventing the light bulb. He learned from his failures and moved on. A teenaged Michael Jordan was told he didn’t have the skills to join the school basketball team, but that didn’t stop him. Elon Musk was called insane and to prove people wrong he invented a reusable space rocket!
What do all these people have in common? They worked as hard as they could, they didn’t stop, they failed and they learned from their mistakes. Ultimately, they believed in themselves and that their goals were possible.
So, if your goal is to make more money, get a raise or a new job, it is actually not a daunting task. Many have done it, it is possible, and if they can make it, why can’t you?
Call to action: Decide on your goal, embrace the unknown, take the risk and start working towards it. It’s not a race, it’s a marathon so whatever you do, make sure that you are always moving forward. Every journey begins with a small step.
It always seems impossible until it is done – Nelson Mandela
5- Be grateful
This is a tough one but it is really necessary for our life changing journey. We have to be grateful for the good things as well as the bad, no matter how big or small they are. It is really easy to be grateful when someone gives you a free car, right? But what about when you lose your job? Who in their right mind is grateful for losing their job?
The worst day of your life can be your best day. – Tony Robbins
Everything that you have gone through has shaped who you are. All your experiences have made you who you are today, the good ones and the bad ones. It is a fact that we are going to have bad days. We might lose our job and crash our car on the same day… But it is also a fact that we can choose how we perceive those experiences. Maybe being let go opened the door to pursue your life passion! Maybe crashing your car prevented you from going to the bar after being fired and getting a DUI ticket!
Be grateful. If you have a positive attitude towards life, you will be rewarded with people who have your back when you need them. You will be open to new opportunities and people will want to hang around you! No one wants to hang around an extremely pessimist person, so don’t be one.
Personally, I started 2 small business with my wife and we lost quite a bit of money on them. We were not happy about it and we felt ashamed for failing and losing money. But now I understand and I’m grateful for those failures. I learned my true passion and many other skills which I wouldn’t have learned if I hadn’t pursued those failed businesses.
Become the best version of yourself
Money is not evil, and having a constant influx of money can help you become the best version of yourself. When you can stop worrying about money, you can focus on living life on your own terms and helping your friends and family to achieve their goals. Wouldn’t it be nice if you could give $10,000 to your parents so they can take their dream vacation in the Caribbean? Or be certain that if you car breaks down you’ll have the money to fix it? See, having lots of money is not that bad!
What now? Take action! Get out of your comfort zone and embrace the unknown. One thing is sure, you can’t expect different results if you keep doing the same things.
What to do with your money once it start flowing into your bank account?
You may not realize it, but another thing that prevents you from making tons of money is that you don’t know what to do with it. You have no idea what to do if tomorrow you earn $100,000, maybe you could take a vacation or pay off your debts? Maybe you feel that it would be too difficult to manage that kind of money including the taxes, investments, etc.
I can’t help you with the taxes, but I can help you to invest your money in the stock market, so you can have your money making money for you. Even if you are not wealthy right now, the smallest contribution can become huge when you invest it for the long run.
If you don’t know anything about the stock market and investing, I have a free 5 part series about how to invest:
Stock Market 101 Part 1: What are stocks and more
Stock Market 101 Part 2: Stock Analysis
Stock Market 101 Part 3: Types of Stock Market Orders
Stock Market 101 Part 4: Technical Analysis
Stock Market 101 Part 5: Mindset and Psychology for success
I want you to be successful. If you have a role model (mine are Elon Musk and Jeff Bezos) read their biographies, learn how they became who they are, print their picture and put it on the wall. Remind yourself that if they can do it, so can you!
If you would like to know more about my strategy and how to invest in the stock market, you can check my course Money Making Bootcamp where I present you my step-by-step strategy to go from lost to pro.
So what are your money mindset blocks?! Leave a comment below and share it with us, there’s no shaming or judging on this blog!
In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing. – Theodore Roosevelt.