Limiting beliefs are unconscious beliefs we hold about different aspects of our lives.
Personal and performance coach Tony Robbins is an expert at helping people break through these kinds of beliefs. He’s identified the four most common beliefs that affect the four biggest aspects of our lives: health, relationships, career and finances.
We’re going into each of these categories in depth. Today we’re looking at the four most common limiting beliefs about finances, and how to move past them to discover financial freedom.
The only thing that’s keeping you from getting what you want is the story you keep telling yourself. -Tony Robbins
In America, over 60% of the population doesn’t have a spending or investment plan. Here in the UK, only 40% of adults are subscribed to a stocks and shares ISA.
As Tony points out, it’s hard to be good at something when you don’t have a strategy to improve!
Financial management doesn’t have to be complicated, it just takes a bit of education. You can learn the best strategies for success from those who have already mastered it.
“Success leaves clues,” says Tony. “People who succeed at the highest level are not lucky; they’re doing something differently than everyone else.”
Find someone who has achieved financial freedom, and figure out how they got there. Odds are there you’ll learn something that you can apply to your own financial strategy.
It’s easy to fall into this pattern of thinking; expenses often seem to grow in proportion to income and that can make it feel like you’ll never catch up.
But Tony has one trick that’s greatly under-utilised by the vast majority of people: the power of compounding.
“To take advantage of the power of compounding today,” advises Tony, “decide what portion of your paycheck you will set aside and pay yourself for the future.”
Even a small amount of money, combined with the power of compounding, can help you achieve financial independence.
“The fact is, you are not a manager of circumstances; you’re the architect of your life’s experience,” says Tony. “Be sure to get what you want out of life.”
This attitude towards money can be dangerous if not properly managed. While it’s natural to feel like you’ve worked hard for your money and you deserve to enjoy it, it’s important to prepare yourself for the unexpected.
Many families would struggle to come up with money in a crisis, such as unexpected legal costs or home repairs. Set up an automatic savings in order to protect you from this type of financial upset.
And if you don’t think you can afford to save any more, Tony suggests thinking of it this way: “if the government excised a new tax you would find a way to pay it.”
“Think of this as a necessary tax in order to protect yourself and it will definitely pay off in the long run.”
For many, this is a very real fear. With people living longer and salaries growing at a much slower rate, retirement can seem like an impossible dream.
We’re all going to get older, and most of us will reach an age where we can’t work anymore. The truth is that if we want to protect ourselves for that future, we need to save and invest more.
Don’t just count on your pension, start planning for retirement now. The earlier you start, the easier it will be to ensure a safe and comfortable future for yourself.
Money can be a difficult topic to conquer, but it all starts with a bit of financial education. Don’t assume what you’ve always done is going to be enough: get a plan in place to start building your financial security!