Limiting beliefs correspond to the reasons that prevent us from reaching our goals. If you have the objective of getting rich, of building a patrimony and transforming your financial reality, what prevents you?
Often, these obstacles that we created to not live an abundant life are in our mind. They are creations of our mind that completely hinder our development.
We often believe in something because most people do too. But have you ever stopped to note that most people are not rich?
It is not thinking like everyone else that we are going to reach a different destination. We will discuss here the main limiting beliefs practiced in the financial market.
Common limiting beliefs in the financial market
- “I invest in savings because it is safer, so I don’t risk losing my money.”
- “Having a home of your own is essential”
- “I make an investment for my bank because it is more guaranteed”
- “I don’t invest in the stock market because I risk losing all my money”
Investing in savings is safer
This limiting belief means that 88% of Brazilians still put their money in savings. The fact that most people invest in savings accounts does not make it safer. This is because it does not always yield above inflation. And if the investment does not yield above inflation, you risk reducing your equity.
Therefore, before investing in savings accounts, look for other alternatives. Check the fixed income options available on the market. If your problem is a lack of security, check what options are available on the market that offer you the most security.
If your problem is with the issue of liquidity. Perhaps the possibility of being able to withdraw your money at any time is a key factor. Then check the market options that have more liquidity and that at the same time have more profitability. Do not stick to this one option just because you believe it is the best option.
The problem of home ownership
A popular custom defined home ownership as “the dream of every Brazilian”. This limiting belief has generated enormous pressure, especially among young people. Have you ever heard the expression who wants a home? Is this idea still valid?
Let’s understand the origin of the need to own a home. This ideal started to be spread around the time of the industrial revolution. All of this was intended to keep people close to the workplace.
Having a property, a property in a certain region would guarantee that the person would stay there for a long time. So a factory, for example, could count on its employee. In addition, a financing would compromise the person financially for long periods.
When you make a commitment like this, you become a hostage to this expense. In addition to compromising a large part of the budget, it hinders its mobility. You don’t have the flexibility to take a job in another city, for example.
Before making an investment in real estate you need to analyze the accessory expenses unrelated to the investment. If the property is far from your place of work, you have spent traveling. You need to assess whether the region is a more expensive region, as a result, trade ends up being more expensive.
If you see the house as an investment, look for information. Analysis if the property you are investing has possibilities for appreciation. Make sure you don’t have to sell it in a hurry. If an emergency happens and you do not have an emergency reserve, remember that a property is not liquid.
With that in mind, you are not at risk of losing equity by selling below market value by emergency.
Make investment by the bank
Many people establish a trusting relationship with their bank manager. There is nothing wrong with that. But if that prevents you from taking advantage of other ways of investing, it is a limiting belief.
The bank survives on fees and interest. If you don’t promote it, you are not such an interesting customer. And what does the bank do to counteract this?
It offers the same services that you would find at a brokerage or smaller bank with onerous rates. Investing in direct treasury, for example, most traditional banks charge a fee for this service. Therefore, these fees compromise your income.
The tip is: give opportunity to small banks and brokerages. You may be surprised at the advantages.
Fear of investing in the stock market
Every day, many people break away from this limiting belief and start building their financial assets. Why can’t you do the same?
For a long time we had the limiting belief that the stock exchange was closely related to the loss of all assets at once. This was strengthened by the media, soap operas and films.
We had the image of that chaotic environment, full of phones, screens and difficult to understand. The Stock Exchange became a beast of seven heads. Unfortunately, many people still have this image in their heads.
The Stock Exchange has evolved with technology. Today, there are several ways to evaluate the stock market. Everything happens in real time and you can follow remotely.
It is not risky to invest in stocks. It is risky to invest in stocks without knowledge.
Break your limiting beliefs
We are afraid of what we don’t know. But have you ever stopped to see how much we give credit for bad experiences and distrust good experiences? This is yet another example of limiting belief.
Here in financial coaching , we give daily investment tips. We encourage you to develop the potential investor in you. So get to know about actions.
Get to know about the stock exchange indexes. Seek the guidance of a professional, a financial coach can advise you when building an investment portfolio.
If you have a conservative profile, there are countless possibilities to invest. But don’t let fear stop you from achieving your goals. Get inspired by success stories. And take the failure stories as a lesson.
We are here to help you make more informed decisions. After all, if you are aware of what moves your attitudes, you make mature decisions. You become a person with financial intelligence.
