Are you aware of how you may be holding yourself back, increasing risk, and possibly missing out on opportunities for growth and expansion? Financial success often eludes individuals due to deeply ingrained limiting beliefs. These beliefs are the stories we tell ourselves about who we are, our personality, skills, abilities, and experiences. They hold us back when they prevent us from doing the things we need to do. They are particularly detrimental when it comes to managing money. In this article, we will explore five common limiting financial beliefs that hinder your path to financial prosperity.

1) I’m not a numbers person.

This belief often stems from negative experiences in school or at home. A few discouraging situations can lead to the belief that you are inherently bad with numbers. When you start to accept this narrative, you stop investing in your financial education. However, financial literacy is a critical skill for anyone seeking success. Overcoming this limiting belief requires a shift in mindset. Recognize that you can improve your financial skills through education, practice, and seeking professional guidance. By doing so, you empower yourself to make informed financial decisions.

2) My bank account is growing, so I don’t need to look at my numbers.

Superficial success can be deceiving. Just because your bank account is growing does not mean your financial situation is secure. Neglecting a deeper examination of your financials can leave you vulnerable to unforeseen changes in your business. Economic fluctuations, unexpected expenses, or evolving market conditions can quickly erode your financial stability. Regularly reviewing your financial statements and budgets is essential for maintaining a comprehensive understanding of your financial health and making informed decisions.

3) I have an accountant who knows everything, so I don’t need to.

While it’s beneficial to work with financial professionals, it’s crucial that you understand your business finances. Your financials are the foundation of your business, and relying solely on others can lead to detachment and uninformed decision-making. Collaborate with your accountant, seek their guidance, and actively participate in financial discussions. A partnership between you and your financial advisor ensures that you remain in control of your financial destiny.

4) Taking on debt is too risky.

Many individuals harbor a fear of debt, often fueled by negative experiences or media portrayals of financial hardship. While it is true that poorly managed debt can lead to financial ruin, strategically leveraging debt can be a powerful tool for growth. Understand the difference between good and bad debt and create a well-thought-out plan before borrowing. When used wisely, debt can provide opportunities to expand your business and increase your wealth.

5) I can just keep raising money for my business from investors.

In the past, the abundance of available capital might have made it seem like a viable strategy to continually seek investor funding. However, overreliance on investors can divert your focus from building a strong product or service to pleasing investors. This can lead to decisions that may not align with the best interests of your customers. As capital markets tighten, businesses that prioritize customer satisfaction and sustainable growth are more likely to succeed. Shift your focus towards creating value for your customers rather than perpetually seeking external funding.

Wrap Up

Limiting financial beliefs can significantly hinder your journey towards financial success. Identifying and challenging these beliefs is the first step towards achieving financial empowerment. Recognize that financial literacy, regular financial reviews, active participation in financial decisions, informed debt management, and a customer-centric approach are all essential components of a successful financial strategy. Don’t let these limiting beliefs hold you back from realizing your full financial potential. Break free from these constraints and embark on a path to financial prosperity.

This article contains insights adapted from Keith Kohler’s 2-Day Transformational Business Finance and Mindset Retreat, where he helps business owners transform their approach to managing finances. Keith Kohler, also known as Your FinancingMan, has nearly 15 years of experience working with clients on financing and consulting projects. To start Making the Numbers Work for You, consider booking a FinancingMan Strategy Session on his calendar.