Build Wealth by Overcoming These 4 Hazardous Financial Traits

by MSE Staff | Published 3 Nov 2021 

It's no secret that saving money is important. Many people struggle to make saving a habit, but it doesn't have to be hard. In this blog post we will discuss 4 financial traits you should break and solutions for how to stop them from affecting how you build wealth.

Financial Habit 1: Money Avoidance

Some people believe that money is bad. If you've ever heard that the love of money is the root of all evil. This is a belief that motivates people to get rid their money by any means necessary! If you or a role model have ever gone through a nightmare experience involving money, it's easy to say money is bad and call it quits. Money can be a very emotional subject for some people, and they avoid handling it as much as possible.

Money Avoidance Example: You work hard to earn an income but never saving any portion of it.

Financial Habit Solution: Money avoidance is a tough habit to break, but it can be done. The first step you need to take is accepting that it is okay for you to have money. Once this idea has been internalized saving and spending will become easier for you. You also should consider how much better the lives of those around you could be if you had more wealth. Think of all the positive things that you could do with your money if you just made a few changes.

Financial Habit 2: Money Status

At some point most people will acknowledge that there is some connection between financial achievement and the value of your possessions. Sadly, this is left up to interpretation where many fall for the rich lifestyle trap. This is a belief where your self-worth is driven by the perceived value of your possessions. You or an influential   role model may have found the social engagement they desire by acquiring expensive things.

Money Status Example: You spend money in order to impress others.

Financial Habit Solution: Money status is a hard habit for many people with low self-esteem to break because they believe that their possessions reflect who they are as a person. Or they may seek out rewarding social interactions that occur after buying expensive things. If you want to stop this financial habit you need to determine your true value and focus on building yourself up rather than buying things to impress others. Look for other ways to achieve those rewarding social interactions that are not harmful. Make a list of ways that you can nurture relationships without buying expensive things.

Financial Trait 3: Money Worship

Some people view money as a fix-all for everything in life. A money worshipper's initial response for missing their daughter's soft-ball game is to throw money at her. They end up using money as a barrier between themselves and the rest of the world. Money worshippers think that money is the answer to every question and use it as a tool for avoiding personal responsibility.

Money Worshipper Example: You spend your life chasing more and more wealth, believing you will finally be happy when you get there.

Financial Trait Solution: How do we break this bad habit? Money worshipers need to see money as a tool rather than an end goal. Money will not solve all of your problems and you can't buy the happiness of those around you. Write down ten ways that you can participate in social and life events without using money to move things along. In what ways do they keep you more connected with the world around you? Look for opportunities to take a break from chasing money, focus on being present, and find happiness in the moment.

Financial Trait 4: Money Vigilance

Being frugal, saving, and keeping hush-hush about your money seems like a great idea until it becomes harmful. Money vigilance can result in missing out on opportunities to invest because of a desire to avoid loss. In its more extreme cases, someone who is overly vigilant can damage their relationships in favor of keeping their money hidden away.

Money Vigilance Example: You hoard your money and avoid taking investment risks or consulting a team of financial advisors.

Financial Trait Solution: First, you need to break free of the fear that has shackled you to your money. You may have witnessed or experienced a traumatic life event that led you down the path of money vigilance. It can be difficult to build trust and confidence in a world of uncertainty. Working with a certified personal finance coach or mentor can be a great first step. You don't have to choose between money and having meaningful relationships. And there are financial opportunities that can suit your risk tolerance, but you have to talk to qualified experts to find them!

Finances are a part of life. However, some people have displayed certain traits that can inhibit them from achieving their financial goals. These four habits include saving money but only for the sake of saving it rather than using it to improve your future, being so focused on status symbols instead of personal development and relationships, viewing money as an all-encompassing solution to life's problems, and hoarding money out of fear. By using these tips, you can break the four habits so that you can build wealth.