Why People Sabotage Their Financial Success
Do You Prioritize Long or Short-Term Outcomes?
Financial success looks different for you, me, and everyone else. It’s not always black and white. There are many different financial goals people want to meet. However, if you start talking to most people about financial success, you will likely hear some answers multiple times, and some of the answers might include the following:
“Financial success is the achievement of a desired outcome for one’s finances and money. It can also mean fostering a sense of well-being and peace-of-mind. Some key components of financial success include:
Living below your means: Avoid overspending and focus on saving and investing your money. You can set a budget and track your spending.
Saving for emergencies: Build an emergency fund to cover unexpected expenses.
Paying yourself first: Prioritize saving and investing by setting aside a portion of your income before paying bills.
Investing wisely: Consider investing in yourself through education, which can increase your lifetime earnings and open up new opportunities.
Managing debt: Avoid consumer debt and pay off education before making large purchases.
Being patient: Patience can help you overcome impulsive financial decisions and take advantage of the compounding effect, which can significantly amplify returns.”
Source: Google AI
Do any of these resonate with you? Some or all likely do, but many people, though they desire to integrate these habits and experience the positive results from them, sabotage the opportunity by doing the opposite.
Why People Sabotage Their Financial Success
Think back to the last time you sabotaged a great opportunity. It might’ve been a relationship, job, business, investment opportunity, etc.
Why do you think you sabotaged the opportunity? Was it fear of failure, low self-esteem, limiting beliefs, or something else? Most people have sabotaged an opportunity during their lifetime. And a primary way people sabotage themselves is financially.
Most people live above their means.
Most people continually add unproductive debt.
Most people don’t have $1,000 to cover an unexpected expense.
Most people don’t invest aggressively or consistently enough to build wealth.
Most people maintain spending habits that are far too high even though they know they can’t afford it.
Ever come across someone who complained about not having enough money, yet you see them eating out, buying subscriptions, and spending their money on dumb and unnecessary shit?
This is financial sabotage.
You sabotage your financial success when your actions don’t align with your desires.
Do You Prioritize Long or Short-Term Outcomes?
I knew at a relatively young age that if I didn’t fight to educate myself and improve my financial situation, I would struggle financially. The only way to stop sabotaging your finances is to cut your spending, start (and don’t stop) investing, consistently live below your means, and consistently increase your income.
People who focus on short-term outcomes can’t see past right now. They’re caught up in living in the moment.
I’ll never forget when someone told me to buy a new car (when I didn’t need one). Meanwhile, they struggled to complete basic repairs on their new car. Never take advice from broke people.
People with a long-term view define their goals and ensure their steps today are in direct alignment with them. They’re willing to make sacrifices (manage pain) to help them produce their intended outcomes. After all, pain is temporary. Once you start making sacrifices and seeing the benefits, the sacrifice becomes less painful and transitions to satisfaction and reward.
Master The Financial Basics
If you want to stop sabotaging your finances, master the basics. And what are the basics?
Live below your means—not right at your means or barely below your means, but significantly below your means.
Consistently educate yourself about personal finance.
Consistently and aggressively invest to build wealth.
Consistently increase your income.
That’s it. If you want to do better and experience better financial outcomes, then do better.
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This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any significant financial decisions.