Financial beliefs is the most sensitive part of the Financial IQ test for Parents. Why? Because many of us do not consciously understand what our financial beliefs are. Others of us may be aware of our beliefs but may deny that these beliefs have anything to do with our financial success. Many of us also feel strong rejection inside when somebody starts talking about beliefs and positive thinking.
Your financial beliefs shape your reality. They shape the reality of your kids too.
Interestingly, the most comments I got from people were related to financial beliefs. E.g. “I would never agree that rich people are rich because of hard work.” Or “Most people are rich because of luck or because they inherited riches from their parents! Look at statistics!”. Or “I know quite a few rich people. They are greedy and arrogant.”
I have to stop here and say that I do not intend to convince you of what is true. Therefore, I will not give facts to prove that certain financial beliefs are good or bad. Actually you can find proof for anything, that is why there are so many religions and political parties.
Why changing financial beliefs is important?
My point here is that your financial beliefs shape your reality. Therefore, if you believe that you cannot become rich by hard work, most probably you will not work hard. If you believe that you can only become rich by inheriting riches from your parents and you have not inherited anything, chances are you will not do your best to become rich.
Everything is built on beliefs. One belief is enough to hold you back.
Bodo Schafer
Why should the intangible belief change the tangible financial REALITY? Because this is how our subconscious mind works.
Also, your financial beliefs form the reality of your kids. You are passing your beliefs to your kids. If they want to change these beliefs, they will have to work hard. And change is painful. Do you want that for your kids?
There are quite a few limiting beliefs about money. I have grouped them in 5 broad categories.
Beliefs about your financial abilities
- I don’t know how to deal with money
- Everything is predestined
- If I was born in poor neighbourhood and family, I cannot be rich
- I am unlucky
- I never had a discipline to save
- I do not deserve more money
Beliefs about rich people
- Money ruins one’s character
- I can only get rich by being tough and greedy
- If I become rich, I will lose real friends
- If my children grow up rich, they will be weak and will become junkies
Beliefs about money itself
- Money is the root of all evil
- Money isn’t everything
- Money is dirty
- Having a great deal of money causes problems
- I can’t take money with me
- Money is a limited resource
- Whenever I obtain money, someone else loses it
Beliefs about the price of becoming rich
- Getting rich will be at the expense of my family
- Becoming rich would ruin my health
- If I wanted to have more money, I would have to change myself so much that my partner would not love me anymore
Need for money
You might have a huge need for money:
- Money is a measure of my success
- I am a complete failure without money
- Money isn’t everything but without money everything is nothing
… or you may deny the need for money:
- If I wanted to I could become rich but I do not desire that
- There is more important things in life than money
Both beliefs won’t help you too much.
Remember that you cannot convince yourself of something that does not make sense to you. Therefore, I have prepared some exercises for you.
Do you want to test how good you are in teaching other areas of financial freedom? Take the Financial IQ Test for Parents now!