Seven Fiscal Fallacies You Need to Avoid to Achieve Your Financial Goals

You may not realize it, but you may have beliefs that are stopping you from achieving your financial goals. These fiscal fallacies–influenced by your upbringing, background, and experiences–operate on a subconscious level. In truth, your money beliefs—and your relationship with money—is revealed in your financial health. The ideal is to cultivate a mindset that will help us achieve financial health. Thus, it pays (pun not intended) to have a closer look at how we approach money and finances.

Robust financial health is essential because it is the only way to be truly present. It can be challenging to bring your best self to the fore when you always worry about how to put food on the table or how to cover the next cycle’s rent. With financial chaos eating up much of your energy, other facets of your life will inevitably be affected. Without a doubt, your money beliefs can influence your thoughts and mental models. Consequently, these thoughts will have an impact on your decisions and actions. And these actions will dictate your results.

A Closer Look at Your Fiscal Fallacies

So, if the results you are getting do not agree with the financial goals you have set for yourself, you have to trace it back to your money beliefs. Here are some of the common limiting money beliefs and the ways to debunk them:

1. Money is the root of all evil– With this money belief, it is natural for people to give up higher financial goals. No one wants to be branded as “evil”. The best way to overcome this limiting money belief is to remember that money is just a tool. Just like any tool, money is neutral. How you utilize this tool is mainly dependent on you.
2. You have to be born rich to become wealthy– There is no shortage of rags-to-riches stories to debunk this self-limiting money belief. Successful entrepreneur John Paul DeJoria, prolific writer J.K. Rowling, and media mogul Oprah Winfrey are just some of these stories. Remember that your current financial status should not stop you from moving up to the next level.
3. You need to be smart enough to take care of all that money– We have to remember that the brightest and smartest in any field had to start somewhere. Financial savvy and business know-how are skills that can be learned. Take the time to learn basic accounting and bookkeeping. Tapping the services of reputable wealth and financial advisors can also help.
4. Someone can take care of my finances for me– Developing these necessary financial skills are crucial for building financial independence. Children should be encouraged to pursue financial independence as early as possible. As an adult, you have to find opportunities to exercise your money skills and make financial decisions. Autonomy is critical when it comes to achieving financial health.
5. Money is earned to be spent– A money belief built around the sole purpose of just spending is a financial disaster waiting to hit. Ultimately, savings will cushion you against financial blows. Investments will help you grow your money to achieve financial abundance. Thus, financial health is not complete without talking about saving and investing.
6. Too late for me to be thinking about making money–At 65 years old, Harland Sanders began franchising his famous chicken recipe. Ray Kroc hit it big at 52 years old when he forged a franchise agreement with the founders of McDonald’s. Success can undeniably come at any point in life. And if you think about it, the wisdom and experience you’ve acquired through the years can be tapped to achieve financial success.
7. Money is not that important– Money is a stand-in for anything that is of value or significance to us. Do you value kindness and generosity? With more financial resources, you can extend considerable help to those who are in need. How about quality time with your loved ones? With strong financial standing, you can free up your schedule and spend more time with your family.

Reap the Benefits: Take Charge of Your Finances Now

The benefits of loosening the grip of limiting money beliefs can be life-changing. Take charge of your finances by uncovering deep-seated money beliefs. By identifying your money beliefs, you will be able to pin down the reasons that are stopping you from achieving your financial goals. Our money beliefs are a result of years of conditioning and the financial habits shaped by our environment. While unlearning these money beliefs will require a lot of effort, the benefits at the end are certainly worth the try.