10 Habits Hurting Your Financial Mindset: Avoid These Damaging Patterns

By Zach Buchenau

Last Updated: June 30, 2023

Disclaimer: This post may contain affiliate links, meaning we will get a commission (at no cost to you) if you click through and make a purchase. Please read our affiliate disclosure for more information.

In today’s fast-paced world, managing your financial mindset is more important than ever.

Our habits, both conscious and subconscious, play a significant role in shaping our thoughts and attitudes towards money.

Unfortunately, many of us fall into patterns that can hurt our financial mindset, keeping us from achieving our goals and potentially leading to financial instability.

But what are these detrimental habits, and what can you do to break free from them?

Here are 10 of the most common:

1. Spending Too Much Time On Social Media

Spending excessive time on social media can adversely impact your financial mindset.

It exposes you to a constant stream of advertisements, tempting deals, and the glamour of other people’s seemingly perfect lives.

As a result, you may find yourself making financial decisions based on emotions, social pressure, or impulse rather than careful planning and analysis.

Seeing friends, family, and celebrities showcasing their extravagant lifestyles may cause feelings of inadequacy, compelling you to keep up with others’ spending habits. However, it’s essential to remember that social media presents a curated version of reality and often fails to reveal the struggles or sacrifices behind those flawless images.

To counteract these influences, set limits on the time you spend on social media platforms.

By reducing your exposure to external pressures, it becomes easier to focus on personal financial goals and budgets.

Prioritize developing a healthy and realistic financial mindset, and recognize that accumulating wealth takes time, effort, and, most importantly, patience.

In addition, consider following financial experts or influencers on social media who regularly share valuable advice and resources.

This can help you develop a more positive financial outlook and provide you with practical tips on improving your financial habits.

2. Hanging Out With Negative People

When it comes to financial mindset, surrounding yourself with negative people can have a significant impact on your outlook and decision-making process.

They may instill a sense of fear and doubt into your mind, causing you to second-guess your choices and refrain from taking calculated risks.

As you continue to be influenced by their negativity, your financial confidence may dwindle, preventing you from reaching your desired goals.

In contrast, surrounding yourself with positive and supportive individuals can help foster a healthy financial mindset.

These people typically share their experiences and offer encouragement, allowing you to learn from their mistakes and celebrate their successes.

By associating with those who exhibit a growth-oriented mindset, you can gradually adopt similar habits that contribute to your own financial well-being.

To limit the influence of negative people in your life, consider spending more time with those who inspire and motivate you.

Seek out networking opportunities and engage in conversations with successful individuals who have achieved the things you want to achieve.

This will not only help you in developing a strong financial foundation but also contribute to your overall personal and professional growth.

3. Taking Advice From The Wrong People

Too many people take advice from people who have never achieved anything noteworthy.

If you want to improve your financial mindset, stop listening to people that project their limiting beliefs onto you.

Instead, surround yourself with positive influences.

Think of it this way: there are countless individuals worldwide who have started businesses that made a tremendous impact both financially and culturally. They serve as examples of success and illustrate that dedication and hard work can lead to great achievements.

By learning from these kinds of people, you can find solid financial guidance and develop a strong mindset.

It’s essential to discern practical advice from harmful opinions. Therefore, whenever someone gives you financial advice, consider the credibility of the individual.

Are they successful in the same areas you aspire to be?

Or are they merely projecting their own insecurities and limitations onto you?

Be selective in choosing who you listen to and be cautious of unsolicited advice, especially if it doesn’t align with your goals and beliefs.

As you strengthen your financial mindset, remember the importance of continuous learning and growth.

Stay updated on the latest industry trends and gather insights from reliable sources. Focus on developing your knowledge and understanding of personal finance, investing, and wealth-building strategies.

By doing so, you can avoid bad, harmful advice, and keep your financial path on a fulfilling trajectory.

4. Staying Inside Your Comfort Zone

Staying inside your comfort zone can cause significant harm to your financial mindset. While it might seem counterintuitive, you can’t grow and improve unless you challenge yourself to do things you’ve never done before.

The thing about comfort zones is that the longer you stay in them, the smaller they become–until eventually, you’re forced to step outside of them.

For instance, let’s say you decide to stop developing your professional skills because you’re comfortable in the current position you have. Over the course of time, somebody with more passion and desire might rise up through the ranks with a better skillset and take your job.

At that point, you’ll be out of work, with an out-dated skillset, and zero practice stepping outside your comfort zone–which is pretty much a requirement when job hunting.

By avoiding risks and new opportunities, you fail to cultivate a growth mindset—a mindset that continuously seeks better solutions, embraces challenges, and grows from setbacks.

Adopting a growth mindset propels you towards financial success.

Consider doing the following to step outside your comfort zone:

  • Learn to embrace change and uncertainty, as they often open the door to new opportunities.
  • Network and connect with people who can help broaden your perspectives and challenge your thinking.
  • Continuously educate yourself about personal finance, investing, and wealth-building.
  • Set clear goals and take calculated risks, guided by research and informed decisions.

By challenging your comfort zone and cultivating a growth mindset, you’re more likely to make better financial decisions and achieve greater financial success. Growth happens outside of comfort zone, and the more you get used to living outside your comfort zone, the greater the rewards will be.

5. Spending Too Much Time Learning, And Not Enough Time Doing

It’s natural to want to learn everything about a skill before you attempt it. However, spending too much time learning, and not enough time doing won’t get you anywhere. And when you’re learning like crazy and not making any actual progress, it’s hard to maintain an optimistic outlook on life.

The key is to strike a balance between acquiring knowledge and putting it into practice.

Constantly consuming courses, books, and articles on personal finance is good, but if you’re applying that knowledge in the real world, you’ll never experience the benefits.

Instead of waiting for the perfect moment or to know all the answers, start taking action.

This might mean setting up a budget, starting a business, launching that blog you’ve talked about for years, or investing in the stock market.

Don’t let the quest for knowledge paralyze you. Prioritize doing over learning, and make it a point to expand your knowledge along the way.

This will strengthen your financial mindset, enable you to establish good habits, and ultimately, help you achieve your financial goals.

6. Setting Uninspiring Goals

Uninspiring goals are hard to get excited about. And without inspiration, it’s easy to develop a negative financial mindset.

When you set goals that are too easy to achieve or lack ambition, you prevent yourself from pushing your limits and growing financially. This habit not only hampers your progress but also prevents you from discovering your true potential.

Setting small and uninspired goals gives you a false sense of security.

You might feel good about achieving these goals, but in reality, they won’t make a significant impact on your financial growth. It is important to set challenging goals, which can inspire you to think creatively and motivate you to work hard.

To set ambitious financial goals, consider your long-term aspirations.

Think about what you want to achieve in the next few years, from starting a business to buying a home to retiring early.

These aspirations should drive your financial goals, pushing you to save, invest, and make smart financial decisions.

7. Thinking Of Difficulty As A Bad Thing

It’s natural for you to perceive difficulty as a negative thing; after all, it can be uncomfortable and challenging.

But rather than thinking of difficulty as a bad thing, think of it as a filter that weeds out the weak, reduces the competition, and provides those willing to persevere with the opportunity to achieve massive success.

When you push through difficult situations, you’ll gain valuable experience, making it harder for newcomers to catch up.

So, rather than fearing difficulty, use it to your advantage by pushing yourself to conquer new challenges.

Moreover, recognizing that difficulty affects almost everyone can help you gain perspective. In other words, if something is challenging for you, it’s likely challenging for others as well.

This understanding can motivate you to persevere and navigate those tough times.

Additionally, facing difficulties head-on helps you develop resilience.

When you encounter financial challenges, you’re forced to adapt and find creative solutions. This sense of innovation can lead to personal growth and even open up unexpected opportunities in your financial journey.

By embracing difficulty, you’re not only boosting your financial mindset but your overall character as well.

Financial success takes time, commitment, and dedication. Don’t expect instant results; instead, see the value in the gradual progress you make while overcoming challenges. Celebrate your achievements and learn from your setbacks. In doing so, you’ll cultivate a mindset that embraces difficulty and uses it as an opportunity for growth.

8. Underestimating The Sacrifice Required For Success

One of the most detrimental habits that can hurt your financial mindset is underestimating the sacrifices required for success. Many people assume that achieving financial security and wealth is an easy path, but in reality, it demands considerable effort, determination, and commitment.

Here’s the way I see it: you can either endure the pain of disciplined pursuit or suffer the pain of languishing in your current circumstances.

The road to financial success calls for a strong dedication to your goals.

It’s about developing a clear plan, setting achievable milestones, and persisting through setbacks.

Failing to understand these requirements can lead you to undervalue the importance of patience and perseverance, resulting in a poor financial mindset. Adapting a stronger attitude helps you focus on your objectives and remain resilient in the face of obstacles.

9. Fearing Judgement From Other People

When you allow the opinions of others to influence your financial decisions, you limit your potential.

To break free from this fear, I want you to understand one thing: people will judge you regardless of the choices you make–whether you do, or don’t do something awesome!

So, why not do something awesome and let the chips fall where they may?

Keep in mind that the fear of judgement can manifest in various ways.

You may feel hesitant to ask for help, negotiate a better deal, start something of your own, or take risks that could lead to financial growth.

While I’d like to tell you there’s some magic secret to helping you conquer your fear of judgement, the only way to overcome this fear is to just jump in, let them judge you, and let it go.

In my experience, most people just won’t care. And the ones that do, aren’t worth your time anyway.

10. Not Learning And Developing Your Skills And Knowledge

The final habit that can hurt your financial mindset is neglecting to learn and develop your skills and knowledge.

In today’s rapidly changing world, it’s essential to stay updated and continuously invest in yourself. Failing to do so can contribute to limiting both your personal and financial growth.

I’m a firm believer that we can all, always be improving. So, if you’re not sure where to start, here are a few ideas:

Continuing education: Regularly updating your education, whether through specialized courses, online platforms, or workshops, keeps you relevant in your industry. Participating in these opportunities can boost your confidence and help you make informed decisions that impact your financial success.

Networking and collaboration: Expanding your network and engaging with like-minded individuals allows you to exchange knowledge and stay current with trends. By working with others, you’ll gain insights, ideas, and experiences that can enhance your financial perspective and decision-making.

Developing constructive habits: Adopting regular habits to improve your personal, professional, and financial life can make a huge difference. For example, setting aside time to read financial news, books, or watching educational content can provide useful information that you can apply to your own life.

Implementing new skills: Once you’ve learned new skills or gained additional knowledge, putting them to practice is crucial. If you don’t apply what you’ve learned, your progress might stagnate, and the invested time and effort could go to waste.

Remaining adaptable: The ability to adapt and grow in response to shifting circumstances is essential for maintaining a healthy financial mindset. Be open to change, and continuously reevaluate your goals and strategies to ensure that you’re on the right track.

Ultimately, your financial mindset is greatly influenced by your efforts to learn and develop. Stay proactive in your pursuit of knowledge and skills, and you’ll establish a foundation for financial success.

Zach Buchenau

About The Author:

Zach Buchenau is a self-proclaimed personal finance nerd. When he isn't writing about budgeting, getting out of debt, making extra money, and living a frugal life, you can find him building furniture, fly fishing, or developing websites. He is the co-founder of BeTheBudget, and Chipotle's most loyal customer.

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
30-day Financial habit tracker bundle | Be The Budget

Download Our Free 30-Day Financial Habit Tracker Bundle

These easy-to-use habit trackers will help you stay accountable and motivated on your journey to financial success.