How Your Beliefs Create and Limit Your Financial Reality
Your beliefs are the seeds that create your reality, Your beliefs affect your thoughts, which affect your actions, which ultimately create your life circumstances.
Changing your beliefs can be the most powerful way to alter your life. Altering your beliefs changes the entire cycle.
There are several ways that beliefs ultimately alter your financial behavior:
Beliefs influence your self-confidence. The set of beliefs you have about yourself and your capabilities determines your level of self-confidence. In turn, your confidence affects your ability to learn and apply new financial habits.
Confidence also impacts your ability to pursue financial goals. If you’re not confident in your ability to get results, you won’t persevere.
Beliefs alter how you process information. Scientists have found that people use new information to support beliefs they already possess, rather than to form new beliefs. If you believe that you can’t save money, you’ll look for evidence to support that belief.
Information that is contrary to your beliefs is quickly discarded and ignored. This makes change especially challenging.
Beliefs create limits. It’s almost impossible to rise above your beliefs. If you believe that you’ll never be wealthy, you’re right. If you believe you can’t stick to a budget, you’re right again. This is why it’s so important to change your beliefs to viewpoints that support, rather than limit, you.
Beliefs affect results. If you don’t think you can have a pleasant retirement, you’re unlikely to save or learn about the various types of retirement accounts, If you believe that money changes people for the worse, you won’t take the steps to accumulate a significant amount.
Beliefs are the core of financial challenges. Enhanced beliefs lead to enhanced thoughts, actions, and results. Attacking your negative behaviors is a less effective route to success. Instead, focus on your beliefs and you’re more likely to enjoy positive benefits from your efforts.
What are your beliefs about money?
Make a comprehensive list of your beliefs regarding money, both positive and negative.
Here are few examples of beliefs you may hold:
‣ I’ll have to work really hard to make a lot of money.
‣ Making a lot of money will cut into my free time.
‣ I already have enough money.
‣ I don’t need a budget.
‣ Money equals freedom.
‣ If I make too much money life will be stressful.
‣ I wouldn’t know what to do with a lot of money.
‣ Money makes the world go round.
‣ Good people don’t care about having a lot of money.
‣ More money would solve all of my problems.
Take the time to make a complete list. You’ll need it later.
There are many ways to change the course of your financial life. Addressing your beliefs is the most effective way to create the financial future you desire. With more supportive beliefs, it will be much easier to create the habits necessary to earn, save, and accumulate wealth.
“The unreal is more powerful than the real, because nothing is as perfect as you can imagine it, because it’s only intangible ideas, concepts, beliefs, fantasies that last. Stone crumbles, wood rots. People, well, they die. But things as fragile as a thought, a dream, a legend, they can go on and on.”- Chuck Palahniuk