en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en de en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en en
The last eight years have taken a toll on Americans economically, and many are still feeling the financial repercussions.  According to one study, indebted Americans owe $14,517 on credit cards on average (Forbes).
But how much they owe isn’t the only problem.
The other half of that equation is how much they’re saving. . .or not.
Americans are in bad shape financially.
But what if the secret is not learning how to live more frugally?  What if the secret is instead to look at your money mindset?
If you’re stuck in a financial rut, could one of these reasons be the cause?
4 Crucial Places Your Money Mindset is Killing Your Finances
1. You Don’t Consider the Future Enough
Sometimes life is like a game of chess.
You have to not only look at where you are currently, but also anticipate what may lie ahead, depending on what action you take now.  The ability to take action only after you’ve considered all financial implications is a skill many millionaires have.
According to Amanda Augustine, job-search expert at TheLadders.com, wealthy people often are “willing to move horizontally, or even take a step down if there is a future opportunity to move up and take on an even better role.  Employees at every level can learn from this behavior.  Making a sideways career change (either within your company or to a new one with a similar title, pay and responsibility) can also be worth it if your industry is contracting and the new job is in a field that’s growing or if you’ll be saving money with a shorter commute or cheaper parking or getting better benefits, whether insurance- or retirement-related” (Huffington Post).
I knew a woman who was unemployed, and she refused to take any job that paid her less than her old position.
However, what she failed to see is that many of these positions she applied for, though they started at a lower salary, had the potential to eventually give her an even greater salary than her old job.  She refused the jobs without looking at the future.  Instead, she remained unemployed and eventually went back to school for a Master’s degree.  She acquired more student loan debt, and the last I had heard, she had earned her Master’s degree and was still unemployed.
Don’t let this be you or your finances could suffer as hers did.
2. You Don’t Create a Persona for Yourself
No, I’m not talking about being someone you’re not.
Instead, I’m talking about creating a reputation for yourself.
If you want to get ahead at your job, you may think that the secret is to work hard and do an excellent job.  While that is important to do, it’s not enough.  Michael Slade, HR director at Eric Mower and Associates, suggests, “If you want to advance, some of the responsibility falls on you to toot your own horn.  Make sure your supervisor and your supervisor’s supervisor are well aware of what you’re contributing” (Reader’s Digest).
In his ebook, How to Get Your First 5,000 Subscribers, Derek Halpern, of the popular website Social Triggers, urges people to create buzz about themselves by forming the way you’d like people to think of you.  He calls this technique shaping.  If you want to be known as the go to guy to fix computers, for instance, you need to create that persona and shape the way people think about you.
3. You Don’t Want To Negotiate Your Salary
Have you ever negotiated your salary when you’re applying for a job?  Have you ever asked for a raise after you’ve been in a position for some time?
If your answer is no to either of these questions and you currently feel you’re not being paid what you’re worth, you may carry some blame for your low wages.
Did you know that many employers expect you to negotiate your salary when you’re interviewed?  Of course, you don’t want to bring up salary requirements in the first interview, but as you advance through the hiring process, remember to negotiate when it’s clear you’ll get the job.
One human resources professional advises, “If we ask, ‘What salary are you looking for?’ say you’re flexible, or say it depends on the responsibilities of the job.  Try not to name a salary unless we really push you, because that gives us a leg up in the negotiating” (Reader’s Digest).
The fear of negotiating your initial salary is one of the reasons why many men are initially paid more than women who are doing the same job.
Men are more willing to negotiate their salaries than women.  One study found “that the starting salaries of male MBAs who had recently graduated from Carnegie Mellon were 7.6%, or almost $4,000, higher on average than those of female MBAs from the same program.  That’s because most of the women had simply accepted the employer’s initial salary offer; in fact, only 7% had attempted to negotiate.  But 57% of their male counterparts–or eight times as many men as women–had asked for more” (Harvard Business Review).
Negotiating your salary is an essential skill necessary to earn more money.
Once you have the job, don’t be content to just keep working for the same salary.  The past few years, not getting a raise has been the norm for many simply because of the economic climate.  However, if you’ve been working hard for a year or two, don’t be afraid to ask for a raise.
Plan to frame your request in the language your boss wants to hear.  She probably doesn’t really care that your money is tight and your expenses are high.  What she wants to hear is why you deserve a raise based on the work you do for the company.  Prepare to meet with your boss and have a list of projects that you’ve completed successfully and valuable skills that you bring to the company that others don’t have.
“Broadly speaking, managers tend to think in terms of production, economic value added, and supply and demand when deciding what to pay people (especially in the private sector)” (Psychology Today).
4. You’re Afraid of Change
Fear of change can keep you rooted in a job that is no longer a good fit for your interests and skills, or it can keep you in a lower paying job when a higher paying job with more potential for advancement may be out there.
Fear isn’t only affecting people in the job market.
After the roller coaster ride of the stock market for the last few years, many people are so afraid of losing money again that they refuse to invest.  Instead, they stick with “safe” investments like certificates of deposit that often do not keep up with the cost of inflation.  “‘Getting overly conservative is as risky as anything else that could hit your portfolio,’ said Steve Wood, chief market strategist for Russell Investments.  ‘A riskless portfolio is not what people would want to orient themselves around, because that would be low-return or return-less'” (MSN).
Fear of change is something all of us face, but it doesn’t have to be paralyzing.
Understanding why we have fear can help us face it and realize that our fear is largely unfounded.  “We humans are fearful creatures.  When faced with making a change, we tend to think about all the ‘what-ifs,’ imagine the worst possible outcomes, treat those thoughts as though they are the ‘truth about how things are,’ and therefore convince ourselves to stay stuck where we are” (The Christian Broadcasting Network).
The worst-case scenario rarely happens.  Knowing that can go a long way to helping us release our fear and move forward.
I must not fear.
Fear is the mind-killer.
Fear is the little-death that brings total obliteration.
I will face my fear.
I will permit it to pass over me and through me.
And when it has gone past I will turn the inner eye to see its path.
Where the fear has gone there will be nothing.
Only I will remain.
While the last few years have been difficult ones economically, if you’re struggling financially more than you feel you should be, maybe it’s time to look at your own thoughts and behaviors.  Your mindset just might be a larger part of the problem than you thought.
Do any of these behaviors apply to you?  What thoughts do you have that keep you from accomplishing your financial goals?
Take a look at our episode about Money Mindset over at the Money Mastermind Show…
Filed Under: Personal Finance
Melissa blogs at Mom's Plans about learning to live a fulfilling life on less. She works as a freelance writer and virtual assistant.
Stefanie @ The Broke and Beautiful Life says
September 12, 2014 at 12:08 pm
As a professional actor, it’s really easy to get into a short term money mindset. You just think of how much you need to float you until the next job or the end of a contract or whatever. It creates a cycle of unsustainability and burn out. You really need to be able to step back and think longer term if you want to be successful- actor or not.
September 13, 2014 at 8:03 am
I imagine you need a lot of discipline when your income isn’t stable long-term.
December 28, 2016 at 3:22 am
Great article. It’s very important to have the right mindset. It can help in different spheres of life. For example, in finding a job. I saw this first hand. You must have a certain mindset, you have to be confident. But, of course, you also need a great resume (you can always get help https://resumegreatness.com/) and you must be a professional to get the desired job.
sex in aalen says
August 24, 2020 at 7:01 am
This is one of the best posts that I had to share with sex in aalen girls
A Little About Me
I'm Glen Craig - I used to live paycheck-to-paycheck, drowning in credit card debt. I turned that all around and now I build wealth rather than debt.
My goal is to make personal finance easy for you.
Join our email list (FREE) and never miss an article!
Use Google Calendar To Pay Your Bills On Time
9 Things to Do When You Retire
Side Hustle-Make Extra Money Cleaning Homes
Four Ways You Can Pay Off Your Home Mortgage Faster
Don’t Forget Your 401(k) When You Leave Your Job! Here’s What You Can Do With It
Your 4 Step Guide on How to Stop Living Paycheck to Paycheck
What Is A Mortgage Escrow Account?
This is Why Your House Isn’t Selling – Here’s How to Finally Get Your House Sold
7 Ways to Get Rich Quick
What is Renter’s Insurance and Why You Need It
What Is a Probate Lawyer and When Would You Use One?
Money Market Account VS Savings Account – What’s the Difference?
Five Ways Fantasy Baseball is Like Personal Finance
Tools to Help Organize Your Taxes
Don't Let Your Goals Fizzle Out! - 5 Reasons Goals Fail, and What You Can Do To Make Yours Succeed
What Do You Think of New Year's Resolutions?
Tools to Improve Your Finances
Online High Yield Savings
All About Online Checking Accounts – Why Pay More Fees Than You Have To
Personal Capital Review - A One Stop Financial Center
Online Brokerages That Won't Break Your Bank
Credit Karma Review - Get Your Credit Score and More
Mortgage and Refinance Rates
Follow Us On Pinterest!
Follow Free From Broke's board Most RePinned and Popular {Free From Broke} on Pinterest.
Think Long Term When Shopping Black Friday and Cyber Monday
10 Essential Tips For Shopping Black Friday And Cyber Monday That Will Save You Money
How to Improve Your Credit Score Fast
What is a Refund Anticipation Loan (RAL) and is it Worth It?
Paying Taxes with a Credit Card: Pros and Cons
Free From Broke is for general information or entertainment purposes only and does not constitute professional financial advice. Be smart and do your own research or contact an independent financial professional for advice regarding your specific situation.
In accordance with FTC guidelines, we state that we have a financial relationship with companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.
© 2007–2022 Free From Broke A Personal Finance Blog For Regular Folks – All rights reserved.
No content on this site may be reused in any fashion without written permission from FreeFromBroke.com | Privacy Policy | Sitemap
Copyright © 2022 · Metro Pro on Genesis Framework · WordPress · Log in
We are using cookies to give you the best experience on our website.
You can find out more about which cookies we are using or switch them off in settings.
Go to mobile version
Close GDPR Cookie Settings
Powered by  GDPR Cookie Compliance
This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.
Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.
Enable or Disable Cookies
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.