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6 False Beliefs You Must Let Go of to Make Money Efficiently

6 False Beliefs You Must Let Go of to Make Money Efficiently

I don’t really want to go much into the philosophical side of what it means to make money, but I feel that a quote by Tony Robbins really comes in handy here: “Where focus goes, energy flows.”

So what does this exactly mean in the context of our topic? Well, it is not a secret that any action that we have ever done (excluding reflexes and automated body functions), existed first in the form of a thought. Hence, our thoughts shape our life. Regardless of whether you are happy or depressed, it doesn’t matter. It isn’t the surroundings or events that make us feel that way, but our reactions towards these things. A car breaking down for one person may mean the end of the world, while another person may see it as a great opportunity to finally start using public transportation. It really is up to you how you react.

Now, coming back to the idea of making money, I must admit that I was raised with a number of limiting beliefs that I could not easily accept and let go of. In fact, most of the people I know have the same beliefs. It is just the way most of us were raised and something we never really questioned or thought of proving wrong – we simply went with the flow. But after spending some time trying to rationalize my thoughts, I finally came to the conclusion that there exists a number of beliefs that will always hold us back from making money no matter what. And the only way to battle this is by becoming fully aware of these beliefs.

1. Rich people are greedy

One of the most common misconceptions I hear about rich people is that they are greedy. They are rich, and they always want more! But how do we know this? From movies? Or from those clips that we once saw on the news? Obviously, there are corrupted people in the world that have attained their wealth in an unethical way, but what we don’t want to consider is that the world goes far beyond that. As a matter of fact, rich people are the ones to donate the biggest amounts of money to various charities, which is something that their offenders will never be able to afford.

Another thing that I have recently come to understand is that many rich people are wealthy because they dare to take action in life in a way that others can’t. Most rich people are driven by risk-taking and self-development. I think that instead of judging them, we should see them as an example of what it means to have an exciting and proactive life.

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2. I was not born in a rich family, so I can’t become rich

This is another very popular belief. Because one was not born in a wealthy family, they automatically think that they don’t have the opportunity to make a lot of money. The only way we can become rich is by winning a lottery, they say. Moreover, that becomes their excuse to avoid working hard and coming up with brilliant ideas. They point fingers at people driving a Lamborghini and say that their rich dad bought it for them.

Again, it doesn’t matter what the story is behind that young dude driving his sports car. The idea that I am trying to get across is that we should avoid irrational judgment. “Where focus goes, energy flows,” so don’t focus your mind on why it’s wrong to have a sports car, but rather on what you could do to be in a similar position, if that is what you want, of course.

Most of my life, I would look at people with nice cars and judge them, thinking that they probably never paid for that car. But with time, I learned to look at them and to admire the fact that they have the opportunity to drive the car of my dreams. I motivate myself by thinking that if that person found a way to make enough money to buy that car, then I can find a way as well. I am sure it is possible. I convince myself that it is.

3. Money will not make you happy

This one is my all-time favorite. The funny thing is, I hear this phrase more from people that are broke. Moreover, they constantly talk about all the great things that they would do if they had the money or the things they want to do in order to make that money. When they forget about what they said before, they repeat once again that money does not make anyone happy.

I don’t want to be hypocritical about this, but I also think that money does not equal happiness. However, even though I am not excited about being able to buy things for myself, I really love being able to give to other people. And guess how much it hurt me when I was not able to buy a simple gift on a birthday to my parents simply because I had no money? So, while I don’t think that money can make you happy, I think it can impact your happiness indirectly.

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By being able to help others with money, you can give them so much! Unfortunately, everything in this world costs money. And the more quality you want, the more you will need in order to pay for it. Therefore, I am aware that I must make a lot of money to be able to help as many people as possible in ways that they could really benefit from. I also feel that I could give back to my family that has put so much time and effort into raising me. I will never be able to give back all of it, but I would be extremely happy to be able to offer them the comfort that they need. Money will not make you happy, but if you know how to use it, you can make so many people around you feel so much better, be it by buying them food, shelter, expensive treatments and medicine, or just plain gifts.

4. Money will destroy your soul

I am a vegetarian and I am very big on yoga and meditation. Throughout my whole life, I was convinced that spirituality and money do not go hand in hand. It was clear to me that I must choose between the two. Thinking about the way I used to rationalize then makes me want to scream out loud now.

This belief is so powerful that it completely destroys any opportunity of making any amount of money exceeding your monthly salary. I know this is closely related to the belief regarding greed, but, nevertheless, I want to look at it separately because there is much more to it than just greed.

I used to hear stories about how people would make money, and then they would make more and more money, and would not be able to think about anything else other than money. I also heard people tell me that you don’t need to make a lot – just a bit. Well, I agree that you can be poor on the outside but rich on the inside, as well as be rich on the outside, but poor on the inside. Like I already mentioned, it is all about the mindset. You can earn millions, but still have that scarcity mindset where your fear of losing all that wealth takes over and rules your life.

On the other hand, why would money kill spirituality? Can you not meditate, do yoga, be generous, kind and loving with a lot of money? Since you have a lot more money to spend on comfort, you can probably be more loving, kind, and generous with money, than without it. You have less basic things to worry about.

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I have observed that people that do make a lot are simply more capable of making more money. By having the action-taking mindset that they do and by having more money to invest, they can afford to take more risks, and therefore make even more money. And it isn’t always about living in the scarcity mindset, but about simply rich people loving what they do and their business lifestyle. Think about it, would a lazy person be making a lot in the first place? Of course not! Only people that are passionate and ambitious find ways to create that wealth, and they will continue being passionate and ambitious even after they have become rich. It isn’t always about the wealth, it’s the attitude.

5. Make money to make the world a better place

When my friends talk about making money, they make it sound so dull, so black and white. It’s always about making big bucks and buying cars and houses. I used to also think this way, but after shifting my beliefs, I gained a whole new understanding of what making money really means.

If you think of wealth only in terms of houses and cars, you should definitely reconsider your beliefs. This is exactly why you see rich people being depressed and people like me writing about the topic. Bad examples are always a lot more noticeable than the good ones.

To be able to view richness as something worth striving for, you must create interesting, intriguing, and virtuous goals. If you see money as a way to make only yourself wealthy, it will never be a big enough motivation to actually make it happen. However, if you set real and meaningful goals, you will have a totally different attitude towards money.

Isn’t being able to build hospitals and schools for people all over the world worth living for? Isn’t being able to offer water to dry areas of earth virtuous? What about helping homeless people and animals, investing in research against deadly viruses, or helping invent new technology for the benefit of all humankind? Aren’t all those things worth getting rich for? You can do so many great things with money, and it all comes down to your imagination.

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6. Becoming rich is difficult

I don’t think it is easy either. But I do not think working your whole life eight hours a day at a job you hate is any easier. On the other hand, being able to earn a lot of money for something you love doing, and then being able to help the rest of the world, seems like a good cause for hard work.

Also, if your motivation is more than just making a lot of money, you will be able to work all day long without having the feeling that you are at work. As I already mentioned, it is all about the mindset.

Conclusion

I have many times heard that money is energy, but I was not sure about what that meant. Now I understand that making money is not only about earning the actual money, but more about the way you look at things. If you are totally confident about why you want to become rich, if you have learned to see wealth as something beneficial to the whole world, as opposed to something “wrong”, then you allow your focus to go towards that reality where money and richness are a part of your life. But if you keep judging others and finding excuses why money is evil, there is no way you will ever earn more than what you get paid at your normal job.

Get rid of limiting beliefs and don’t let anything stop you from achieving your goals!

More by this author

Victor Stepanchikov

Software Engineer, Blogger, Personal Development Freak

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Last Updated on July 10, 2020

The Definitive Guide to Get out of Debt Fast (and Forever)

The Definitive Guide to Get out of Debt Fast (and Forever)

Debt can feel crushing, like a weight that is always weighing you down. Looking at those numbers, it can feel as if you’ll never get out from under it. However, if you really want to learn how to get out of debt, it is possible with a great deal of focus and self-control.

Getting out of debt isn’t impossible. Like any big goal, all that it takes is an action plan to identify where you are and creating a plan to zero out your debt.

Identifying All of Your Debts

The first part of paying off your debt is getting a complete picture of what you owe. When you have everything written out in front of you, it makes it much easier to create an action plan. Depending on how much you owe, it might also help you realize it’s not as bad you might have originally thought.

Here’s how you can get started identifying your debts:

1. Own Your Debt

Before you start identifying all of your debts, take a moment to process that you have debt but want to get out of it.

Forgive yourself for any past mistakes, missed payments, or overspending. It might be painful to accept how much debt you have at first, but you must own it.

2. Make a Debt Tracker

It’s astonishing how few people ever created a tracker to understand their total debts. Most likely, it comes from not wanting to accept the guilt of having debt, but, if avoided, it can make it nearly impossible to get out of debt.

Open up a new Google or Microsoft Excel sheet and list out all of your debts. Start with the name of the creditor, interest rates, total balance, loan term length (if any), and the minimum amount due each payment. This will include student loans, credit cards, and any other type of debt owed.

3. Get Your Debt Number

Once you’ve made your debt tracker and taken the other steps, identify your total payoff number. This is crucial, as you will have a starting point and a clear goal that you are trying to achieve.

Prioritizing Your Debts

All debt is not created equal. It’s imperative to understand that there are different types of debt.

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1. Understand Bad and Good Debts

Bad debts are usually paying for things you want instead of always need. While there might be some emergencies that max out your credit cards, often times it’s excessive spending[1].

There are three main types of bad debt:

  • Credit Card Debt: The average American household owes over $16,000 in credit card debt!
  • Auto Loan Debt: According to CNBC , the average auto loan in the US is $30,032!
  • Consumer Loan Debt: Consumer loan debt isn’t as common as credit card and auto loan debt, but it’s still considered bad as interest rates are usually between 10-28%.

Good debt is identified as investments in your future. Here are three common types of good debt:

  • Student Loan Debt
  • Mortgage Loan
  • Business Loans

2. Decide Which Debt to Pay off First

Once you know each type of debt and their interest rates, you can begin to pay off debt quickly.

Focus on paying off bad debt first, regardless of if it is a credit card or auto loan. Start by paying off the loan with the highest interest rate first.

If you have several credit cards with different interest rates, you want to focus on the one with a higher APR. You will actually save more money by eliminating the card with the highest interest rate.

3. Don’t Pay the Minimum Amount

Paying the minimum amount digs you into a hole as interest rates will offset your payment. Even a small amount more than the minimum can help you pay off debt much faster.

Removing Obstacles to Pay off Debt Quickly

Creating a debt tracker and prioritizing a plan is simple, but avoiding temptation can be difficult.

1. Set a Reminder to Track Your Debt

“If you can’t measure it you can’t manage it.” -Peter Drucker

It’s so important to track your debt to ensure that you get it paid off quickly. Similar to working out and measuring your results, you need to track your debt constantly. Start with a weekly reminder, where you sign on and log your updated number. Did you increase, decrease, or stay the same?

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Regularly tracking your student loan balance can be incredibly motivating, as well. You will get a huge confidence boost each time you see your total debt amount decreases.

Set weekly and monthly goals so you can have short term wins and keep the momentum going.

2. Hide Your Credit Cards

If your biggest debt is credit cards, you need to eliminate temptation and remove them from your wallet.

Some people have gone to extreme measures by freezing their credit cards. Why? This would create an ice block around your card, which would require you to chip away at it slowly. This will give you time to think if it’s the best idea to buy that thing you’re about to buy.

3. Automate Everything

Willpower can be a huge downfall to paying off your debt. By automating your bills each month, you will ensure that willpower isn’t involved.

4. Plan Ahead

Getting out of debt will require some sacrifices, but with enough planning, you can make it work.

For example, if you know that you have a friend’s birthday or family dinner coming up, plan ahead for the costs. Whether you need to cut back on spending the week before, pick up a side job, or meet them after dinner, do what is needed.

5. Live Cheaply

The only way to get out of debt is to make some sacrifices on your spending habits. Find ways to save money each month so you can apply that amount to your outstanding debts. Here are some ways to save money each month:

  • Live with roommates
  • Cook dinners and prepare lunches for work instead of eating out
  • Cut cable and choose Netflix or Amazon Prime
  • Take public transit or bike to work

Finding the Lowest Interest Rates

The higher your interest rates, the harder (and longer) it will take you to pay off any debt.

If possible, you want to find ways to lower your interest rates to help get out of debt quickly. Here’s how you can get started:

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1. Maintain a High Credit Score

Your credit score will have a large impact on your ability to refinance your loans and receive a lower interest rate. If you have a low credit score, it’s unlikely you will be able to refinance your loans. Use these credit tips to increase and maintain an excellent score:

  • Never miss a payment
  • Don’t exceed 30% of your credit limit
  • Don’t sign up for more than one card at once
  • Limit hard inquires, like auto-loans and new credit cards
  • Monitor frequently with free credit-tracking software

2. Find Balance Transfer Offers

Start by opening a free account on credit.com. Credit.com offers you the chance to open a free account and see what type of balance transfer offers you can receive. Some of your existing credit cards might already have 0% or lower APR balance transfer offers available.

Contact each of your credit card providers to ask about lowering your rate for a one-time balance transfer offer[2].

If you do take advantage of this option, make sure that you use a balance transfer and not a cash advance. Cash advances have a ton of high interest fees (15-25%, depending on your credit card) and will only compound your debt problem.

How to Get Rid of Debt Forever

Setting up a plan, removing temptations, and getting the lowest interest rates is the first step to get out of debt.

1. Keep Monitoring and Adjusting

Once you have a plan, don’t get comfortable. Track your debt payoff plan and make the necessary adjustments when needed.

Monitor your credit scores with a free site like CreditKarma. The higher your credit score climbs, the more likely you will be to secure a new, lower-interest loan.

2. Earn More Money

There are only so many ways to save money. Instead of clipping another coupon or making sacrifices for your morning coffee, find ways to earn more money!

Think about it…it is much easier to find ways to earn an extra $1,000 per month than find $1,000 to cut from your budget.

Here are some examples of ways to earn more money:

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Talk to Your Boss

Have a conversation with your boss about current salary and/or commission rates. If you’re not satisfied or want a change, don’t be afraid to look around at other positions. Some of them might even have a student loan debt reimbursement plan!

Start a Side Hustle

This could be coaching students on the weekends, driving for Uber, or taking paid online surveys. There are tons of ways to make money outside your 9-5. Now that you have a clear plan to pay off your debts, you’ll be more motivated than ever to figure out creative new ways to earn money.

Build an Online Business

There are so many websites and blogs that earn money from ads, affiliates, and other online products. Find your niche and get started.

3. Celebrate Your Wins

As you progress in your debt payoff journey, don’t forget to celebrate your wins. You need to always reward yourself for the hard work and discipline that is required to get out of debt.

While you shouldn’t celebrate so big that it increases debt, make sure to factor in little rewards to keep you motivated.

4. Set New Financial Goals

Eventually, with a plan and these steps, you can rid yourself of your debt. Once you do, make sure to celebrate your monumental achievement, but don’t stop there.

Now, you can focus on acquiring wealth and increasing your net worth. Set new financial goals so you have a new target to aim toward. Here’s how to set financial goals and actually meet them.

These could be anything now that you are debt free! Think about where you want to travel, buying your first home, or saving for your future retirement. Just like before, make sure that your goals are specific, measurable, and achievable.

Conclusion

Congrats, you can now set a plan in motion to finally pay off your debt quickly (and hopefully forever)!

Remember, if you want to get out of debt quickly, it’s not always easy. Just like any big goal, there will be sacrifices, challenges, and problems to overcome.

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Featured photo credit: Pepi Stojanovski via unsplash.com

Reference

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