Mindsets that may actually be hurting your financial progress

The financial experts of Kiplinger Advisor Collective list some of the most common money mindsets people have that may actually be hurting their progress with money, detailing not only the reasons why but also how they can change and finally get their fin

‘It’s either all or nothing’

“Having an ‘all or nothing’ money mindset is unhelpful and hinders financial progress. It’s common to discount smaller amounts of money as not being enough. Initially, however, creating the habit is more important than the amount. Whether saving, paying down debt or investing, take the mindset of ‘some progress is better than no progress’ and do what you can. As more money is available, you can increase the amount.” — Chianté Jones, Dollars and Change

‘It’s better to not take risks and to play it safe’

“Fearing uncertainty is a significant hindrance to financial prosperity. This can lead to you not challenging yourself, which results in never knowing what could have been. While it’s common to feel unsure about stepping out of your comfort zone, it’s essential to do so in order to see growth. The best way to alter this mindset is to have better financial discernment on which risks are worth it.” — Justin Donald, Lifestyle Investor

‘Spending less equals saving more’

“One harmful money mindset is the belief that ‘spending less always equals saving more.’ This mindset can limit financial growth by ignoring the importance of earning more and investing wisely. To change this mindset, focus on creating a balanced approach that includes budgeting for savings, investing in professional growth and exploring opportunities to increase income — not just cutting expenses.” — Amrita Choudhary, Wasabi Technologies

‘Credit cards are like free money’

“Credit cards are not an alternative source of income! They are an excellent resource if cash is in an account earning income. They can be used to track expenses, their savings offset any fees, and your charges earn some sort of benefits. Your benefit in using a credit card, however, is predicated on you paying the balance in full every billing cycle.” —