Wealth Habits

CHAPTER 2Four Common Beliefs Keeping You Broke

Throughout this book, we'll be addressing the very tactical, tangible steps of wealth building, and I'll be sharing the specific necessary and actionable steps that lead to financial freedom.

Of course, there are lots of tangible reasons that keep you broke—overspending, not investing, racking up bad debt on depreciating assets—and you may be aware of those. But there are many intangible habits that come into play as well.

I can teach you all the tangible steps that will make you wealthy, but if we don't address a few of the intangible beliefs most people carry around with them, we'll be swimming upstream together.

The faster we break these beliefs, the sooner we can get on our way to building the wealth habits. So let's jump into it.

There are four common beliefs keeping you broke:

Broke Belief #1: Scarcity

Scarcity is a belief that wealth is limited, that you can run out of money or will never have enough. The term “scarcity mindset” was coined by the author Stephen Covey in his book The 7 Habits of Highly Effective People.

As discussed in a recent Business Insider article, “There are two main facets: the thought that wealth and opportunities are limited, and the fear that one will never have enough. A scarcity mindset can also come with an obsession with what one is lacking. This creates a tunnel vision of sorts, making it more difficult to move forward and achieve financial goals” (Yale, 2022). The article continues, “the ...