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Anne-Lyse Wealth: this is the Dreamers Podcast episode 126. Today is November 21st, 2023.
the fear of failure. Basically, you're avoiding to take risk, whether it's financial risk or, risk when it comes to your career. And you miss out on opportunities because you're afraid of failing, you're afraid of losing money. So, you're not going to start investing, whether it's in the stock market and real estate, you've read all of the books.
you're waiting on the perfect opportunity, the perfect time and you are in this state of analysis paralysis. And uh, that's not good. And I think we've all experienced that at some point where we feel like we're not ready but the truth is the best way to get ready.
Once you've taken the time to do your research is to just do it, and then you just get better, as opposed to waiting a whole nother year. And missing out on a year in the stock market, missing out on the year of appreciation for a potential home, risking out on the year of starting a job at a new company that pays you more because you are afraid. Hello. Welcome to the Dreamers podcast. I'm your host Annelies Wealth, and I'm so excited that you're here today. Today, we're going to talk about overcoming money blocks. I think a
A lot of us, most of us have at some point come to a point where basically we had to deal with some types of mental blocks when it comes to money, wealth building. And so in this episode, I will share five common mental blocks preventing people from building wealth or living the wealthy life that they deserve. also I recommend resources and tools to And I'm sure you'll be able to recognize some of them, if not all of them.
Anne-Lyse Wealth: The first money mental block that I'm going to talk about today is the scarcity mindset. A scarcity mindset is really when you believe that there are limited resources. If someone has something then you can't have it, or, you know, just not believing that there's an abundance of resources and money and wealth out there, and there's enough for all of us.
Right. So all of us can get to wealth or build wealth, or at least live the wealthy life that we want. So to give you an example, I used to focus on the cost of things like how much it would take to do something or to be able to have something a few years ago, that instead of what I would gain from paying for a service, right? For instance, like housecleaning, the time that I get back or how I can use that time to earn more money. And so a framework that has been helpful for me is basically calculating your hourly rate.
based on that, using that to help identify some of the tasks that you should consider outsourcing, unless for X, Y, and Z reason, you really want to hold on to those tasks. Maybe you enjoy the process. Maybe you really, really like cleaning, right? so for instance, let's say you make 50, 000 a year.
Let's be conservative and say you work 40 hours a week, that's about $24 an hour, $24 and 4 cents, If you make a hundred thousand, you divide that by 40 hours, that's about $48 an hour. You can keep doing that. You know, if 200,000 that's $96 an hour. So that means that basically any task that you have to pay for that is.under your hourly rate, you should really weigh the pros and cons of doing it. and honestly, I think that this framework is great for entrepreneurs, like it gives you an opportunity to get some of your time back to make more money or focus on activities that can help you grow your business or spend more time in your zone of genius, which will ultimately result in more income.
But it's also great for people who are nine to fivers. Who have to make a decision when it comes to household tasks will give you some of your time back again, and maybe you want to use that time uh, spend more time with your loved ones. Maybe you want to use that, time for yourself gain more peace, more joy, and that's all part of living a wealthier life, right?
So some of the resources that I recommend to help you change your money mindset. When it comes to scarcity is an article in HBRSN, how to build wealth when you don't come from money. And I'll make sure to link that in the show notes. So check it out.
Several first generation millionaires talked about some of the mindset work they had to do. To basically embrace abundance. Also I would like to recommend some books uh, Thinking Grow Rich book that I read years ago that was very instrumental, but also like the magic of thinking big. you can check out episode 68, how to change your money mindset to earn more with Natalie Bullen.
And that was on, of course, the Dreamers podcast. All All right. right. The thing with the scarcity mindset is that if you don't acknowledge it and deal with it and recognize it, it can lead to even like earning less money, right? It can also lead to you undervaluing your skills and services, your products.
Because you don't necessarily think that, first of all, the person in front of you, your client, is going to pay you that much. Or, also, it applies if you have a 9 to 5. You don't necessarily think that your employer is going to pay you as much as you would want.
You don't even want to think about asking for a certain amount of money because you are operating. In that scarcity mindset, and that can lead to you staying too long at a job that doesn't value you that underpays you. And because, you know, you are secured in that job, it leads to not charging enough again for your products or services.
And when it comes to that, the advice that was given to me years ago and that I apply and I always share with clients of mine is that you should not worry about someone else's pockets. That's not your concern. What you should focus on is delivering the best quality that you can so that you can commend those prices.
All right, if you want to learn more about just negotiating and asking for more, I'm also going to include an article what to do when your race isn't enough. So that's for nine to fivers. Also, if you want to listen to how to negotiate and quit your way rich episode 95 of the podcast with Mandy Woodworth Santos, that will give you a lot of tips on again, how to ask for more, whether it's in your nine to five or in your business.
Anne-Lyse Wealth: Common mental block number two is the fear of becoming wealthy, the fear of success, Sometimes we have this self limiting belief that if we Become well, one that maybe we're not capable of earning the type of income that we want.
So we just say, Oh, I'll never do it. Or sometimes we fear that the effect of us. Earning that income or building that wealth that is going to have on our loved ones that stops us from going after what we truly want.
and it might lead to actually us self sabotaging when it comes to the things that we say about ourself, our thoughts, our belief saying things like, I'll never be rich, money is the root of all evil, that's all. False. I think if people in your circle stop being kind to you or start changing because you have earned money or you've built wealth, then it says more about them than it says about you.
A resource to help you deal with that. Mental Block is a book that I absolutely love called We Should All Be Millionaires by Rachel, Rachel Rogers. If you're interested, make sure to check it out. I will link it in the show notes. All right. You ready for mental block number three? Mental block Number three, when it comes to wealth building Is the fear of failure. Basically, you're avoiding to take risk, whether it's financial risk or, risk when it comes to your career. And you miss out on opportunities because you're afraid of failing, you're afraid of losing money. So, you're not going to start investing, whether it's in the stock market and real estate, you've read all of the books.
you're waiting on the perfect opportunity, the perfect time and you are in this state of analysis paralysis. And uh, that's not good. And I think we've all experienced that at some point where we feel like we're not ready but the truth is the best way to get ready.
Once you've taken the time to do your research is to just do it, and then you just get better, as opposed to waiting a whole nother year. And missing out on a year in the stock market, missing out on the year of appreciation for a potential home, risking out on the year of starting a job at a new company that pays you more because you are afraid.
So, I read this amazing book recently called A Healthy State of Panic, Follow Your Fears to Build Wealth, Crush Your Career, and Win at Life by Farnoosh Torabi. And this book is an amazing tool to help you deal with fear in general. So it talks about the fear of failure, it talks about the fear of rejection, it talks about the fear of ending.
So I highly recommend the book and I'll link it in the show notes. And
Also, I think a great resource here is someone who did the opposite of just waiting around. She did a research and then she just went for it.
And so if you listen to episode 92 of the Dreamers podcast with Kamara, Yamundo she talks about building a real estate portfolio of over 25 units and think two years, she became a millionaire in that process, and she started with less than 20, 000.
I believe it was less than 10k actually. So I strongly encourage you to check it out. It will help. get over the fear of failure. And really, when you think about it, the fear of failure, like, what's the worst thing that can happen? The worst thing that can happen is that you try and you fail.
It's better than not trying and then regretting one thing that I've learned over the years is I would rather try and fail that not try and then years down the road say, Oh, I wish I had no, let's just try. Let's just give it a shot. Give it our best shot and see where it goes. But when it comes to investing, really, there's so many tools that if you start with.
Time tested methods to build wealth, whether, investing in low cost index funds, for instance, then if you are patient over the long run, you will not fail. You only fail. If you decide that when the market is down, I'm going to take my money out. We don't want to do that. All right. So that was mental block number three.
All right. Mental block number four that often stops us from building wealth or living the wealthy life that we deserve is the comparison trap, comparing yourself to your peers, constantly And, you know, it's hard, right? When you see people winning, you want to win too. So it's normal to have some type of emotions around it.
it doesn't have to be, to get to the point where now you decide that, okay, you're going to compare yourself to them because we each have our own journey. If anything, just use that as fuel to go after what it is that you want. But constantly Comparing your financial progress to your friends or your peers can really make you feel inadequate.
And That's just not conducive to building wealth. So let's forget about keeping up with the Joneses, maintaining a certain lifestyle or appearances to fit in with our peers, our family, our loved ones, or wanting to impress people, let's curve down on impulsive spending and get clarity on the things that we value so that we can practice value based spending, spend money on the things that we care about, that add value to our life. And a great resource to help you with this is a book that I read years ago called Your Money or Your Life by Joe Dominguez and Vicky Robin.
Anne-Lyse Wealth: so this book was a game changer for sure. It's they're headed, or at least it was one of the resources that stay ahead of the fire movement, you know, financial independence retire early and I think that it's an amazing read. Again, personal finance is personal. So read the book. Keep what you like, discard what you don't, but the book has great lessons and tools and concepts that can help you frame your own guidelines around money spending and wealth building.
All right, mental block number five, lack of long term planning, focusing on short term financial goals and neglecting long term financial planning and retirement. So basically that. Translates into us being impatient as focusing on instant gratification, you know, we prioritize short terms pleasures and short term spending over long term financial goals and investment.
one story that I've heard many times over the years is Nick Cannon. I don't know if you're familiar with the entertainer and business entrepreneur Nick Cannon, but. When he was 16, 17 years old, he was signed to Will Smith and he had gotten a check for, I think, a couple hundred thousand dollars.
what he did is he went and bought a Range Rover, the exact same Range Rover that Will Smith had. Will Smith, who was, a top actor, top entertainer, getting paid. Very, very well. And so at that time, Will Smith shared with him, listen, you know, I was in your shoes, I made a lot of money when I was young, I lost everything and I went broke.
And so there's no reason why you should have the car that I drive, run your own race and focus on investing right now. So Nick didn't listen. And he went broke as well, right? Butwell, he went broke and then he got it back and, you know, he's doing amazing financially. But anyways, that's a great lesson on the power of just thinking long term because those things that you focus on short term, whether it's like car clothes.
They should come after you investing in your future, investing in your retirement, investing in your long term goals, investing in the things that are going to help you build wealth, right? So when it comes to the lack of long term planning, also that translate into avoiding having money conversations, avoiding discussions about money with a partner or family financial advisor, not setting clear financial goals or not having a vision for the future, which can lead us to basically having financial habits that are Not working in our favors that are not conducive to building wealth.
So another way that the lack of long term planning translating to is putting too much emphasis on saving. Yes, I said it saving is cool, but you can't save your way to wealth. So when you focus solely on saving money, instead of looking for opportunities to invest and grow the money, you're not building wealth, the money that you Doesn't grow as fast as inflation.
So essentially just saving money is losing money. So we want to think about the long term. We want to set goals. We want to stick to our goals. We want to invest and we want to grow our wealth and some of the resources that are very helpful in helping change this mental block when it comes to not planning for the long term is episode 107 of the dreamers podcast with Cedric Nash, and he talks about five steps to building wealth in an unequal world.
in this episode, he covers. defining wealth for yourself, the sixth level of wealth diversification of your investments and all of the things. So also there are great tools that you can use to help you plan for the long term.
simple things like Apps like uh, Empower, Mint, that'll help you create a budget, manage your budget, look at your investments budgeting, saving apps, you can even use, like, spreadsheets, Google Sheets but the most important thing is to plan and to stick with the plan. And, uh, I'll throw in a bonus mental block, and this is the lack of education, Growing wealth. The wealth game is really a game in the sense that there are rules to the game people have been applying for hundreds of years that have given them results. those rules are not a secret, But the lack of education will basically stop someone from building wealth. When you're thinking about wealth building, you have to think about investing to grow your wealth, But you also have to think about. Optimizing your tax strategy to preserve the wealth, you have to think about estate planning, you have to think about educating the next generation.
So all of those things, you know, the lack of education is definitely a hurdle, but it's something that you can overcome. And I have a few resources for you when it comes to optimizing tax strategy to help you build wealth. Episode 35 of the podcast of the dreamers podcast with Michelle will give you some great pointers.
Also, another resource is rich people problems and why we should care. It's a podcast episode on the So Money podcast with Kristen Keffler. And she talks about a lot of the issues that kids who grew up with wealth deal with. And as you are a wealth builder, and as you are working towards building generational wealth, it'll be good to know what the next generation after you will be facing so you can help them prepare for it.
it. All right. So just to summarize the five of the common mental blocks that people deal with when it comes to wealth building. We talked about the scarcity mindset, the fear of becoming wealthy, the fear of failure. The comparison trap, the lack of long term planning. And then I throw in a bonus, the lack of education.
So I encourage you to identify the mental blocks that you're dealing with that are preventing you from building the wealthy life that you deserve. also to start. Working towards overcoming your money, mental blocks. And I hope this episode was helpful and I hope that you can use some of the resources to help you on that journey.
So if you enjoyed this episode, definitely let me know if there's like specific resource was helpful to you, reach out to me. Let me know the uh, um, the podcast, 21 at gmail. com.
So yes, I'm grateful that you tuned in. Make sure that you check out this episode that can help you even more it comes to building wealth.