It's not always easy to identify the money mindsets you hold that can be harmful (even if they're taught as a good thing!) - so in the second installment of this series, I'll break down 5 more harmful mindsets I see in personal finances and share a simple step you can take TODAY to start the path of healing.

This is Part 2 of the 5 Mindsets Series!

#1: “Do what you love and you’ll never work a day in your life”

I believe that this well-meaning saying inadvertently creates some misguided and unrealistic expectations, for a number of reasons.

1. You don’t have to aim to monetize everything that you enjoy, even if you are an entrepreneur.

2. Being passionate about something isn’t necessarily enough for it to be a viable profession or business.

3. “Work” is NOT the opposite of “passion.” There’s nothing wrong with working.

There is more than one way to find meaning in the work that you do, and it doesn’t always look the way you’d expect it. If you find yourself struggling to feel content in the work that you do, with a strong desire to find that “one true calling” of yours that doesn’t feel like work, then I encourage you to rethink how you think about work.

👉 Try This! Briefly reflect on your current relationship with “work,” and specifically the work that you currently do.
- How do you feel about it and why?

- What have you been striving for - “If only work could look like this, I’d be happier…” - and do you think that this dream is realistic?

- What is it that you find fulfilling when working (even when working is tough) that you can start pursuing TODAY to change how you work?

Read More: How to Make Money More Meaningfully (Even Without "Doing What You Love")

#2: “I’m doing okay, I get by.”

I’ve met many people who have decided, whether consciously or not, to stay stuck where they are. They assume they’ll always struggle with money, be in debt, have a low income, be stuck in a dead-end job. In this way, you simply become a self-fulfilling prophecy!

Now, most of you reading this are probably entrepreneurs, which means you’ve very likely been seeking to break free of this mentality and create a new legacy for yourself. That’s amazing! But this mindset can still stick around in more subtle ways, so I urge you to be cautious.

For example, the entrepreneur who started their business to generate income in a more empowering way for their future…who still hasn’t started paying themselves their desired salary, or achieved their savings or debt payoff goals. The money is coming in… and promptly going out. You’re frustrated that your business isn’t bringing a change to your personal finances like you wanted, but is that because you’ve bought into the narrative of the “struggling entrepreneur?”

👉 Try This! Consider a problem or circumstance in your life or business that has persisted for a long period of time. Be honest with yourself about how you’ve been approaching this situation - is there any part of you that has simply accepted it as a part of you? Why might that be?

Read More: Why We Settle for Less When We Deserve So Much More (Suzanne Mason, Medium)

#3: There is good debt and bad debt.

The acceptance of debt is both misinformation and a mindset misbelief. Many of us were taught that there is good debt - such as mortgages and student loans - and then there’s bad debt - credit cards, personal loans, car loans, etc. The idea is that one type of debt is more of an “investment” into your future, while the other is the consequence of overspending and consumerism.

However, I would argue that there is a difference between calling debt “good” and calling it “necessary” or “unavoidable.”

I’m not trying to shame anyone for acquiring debt. I’m not trading “positive” for “negative,” but rather, I’m choosing to remain NEUTRAL around debt. It is what it is, if you have it you have it, now let’s learn how to get rid of it because the fact remains that it’s costing you money to keep it around.

When we justify debt’s existence in our lives as a positive financial decision, we find ourselves in the cycle of settling for less that we just talked about in #2 - we get comfortable with our debt. And the longer it takes you to pay off your debt, the more it costs you (financially and emotionally).

It’s also worth mentioning that the majority of sources that teach you that debt is “good” includes banks and lenders, credit bureaus, and financial experts who want to teach you debt leveraging while they sit comfortable with enough assets to be able to afford that risk.

👉 Try This! If you are in debt, say so out loud or very clearly in your head - “I am in debt.” If you know how much you owe, add the balance into that statement. Reflect mindfully for a moment on how you feel making that statement. But don’t sit in that - let’s shift it. Now change to the statement, “But I am going to be debt free, and with my new freedom I will be able to…” and fill in that last part. How does THAT make you feel? Even if it doesn’t feel completely believable, try and hold onto any sense of hope or excitement this gives you.

Read More: How to Free Your Wealth Faster with a Progress-Boosting Debt Payoff Strategy

#4: My credit card is my emergency fund.

Similar to #3, this is another instance of leaving the door wide open for debt in your life, settling for less, and operating under misinformation. I would also venture to say that this particular philosophy can be an extension of not trusting yourself to be able to handle your financial emergencies, so you continue to give that power to outside sources. In this case, the outsider is a creditor, who does not have your best interests at heart.

When you’re just getting started in your financial journey, your credit card may very well HAVE to be your emergency fund. But your goal should be to break free of that dependency AS SOON AS POSSIBLE, for your own sake.

👉 Try This! Imagine a small but expensive financial emergency pops up - let’s say the car breaks down and you need to pull together a couple thousand dollars to get it back in working order. Yes, you can hand them your credit card to cover it. But imagine that you’re able to write a check or hand them a debit card instead - how much more empowering would that feel?

Read More: The 6 Critical Steps to Build Wealth the Smart and Stable Way or Sinking Funds Explained: How to Level Up Your Budget and Empower Yourself With More Cash

#5: If I just work harder and longer hours, I can increase my income.

Even as entrepreneurs trying to break free of the 9-5 grind, always hustling mentality, we can still fall victim to the belief that increasing our income looks like working harder and longer hours. Now, I do think there is some truth to this, especially in the beginning as you’re testing strategies and building out systems. However, it’s very easy for this to blur into an unsustainable work/life imbalance.

I believe that before going all in on your hours to increase your income, you first need to make sure that your efforts are being poured into a path that is ALIGNED with who you are and where you want to be. That is the only way for you to actually see the increase in your income AND the gradual ease that should come with it as you scale sustainably.

A lot of factors in our income stories are outside of our control. So it’s important to focus on what it is you can control about your income story so that you can start taking aligned and proactive action to be ready for the right moment. From there, you may see seasons of hustle when the time is right, but it should contribute to progress. You shouldn’t feel like you’re on a treadmill, running harder and faster but going nowhere.

👉 Try This! Ask yourself what you’re currently doing to increase your income. Does this feel intentional, or are you just working harder and crossing your fingers? Do you even know how much income you’re trying to achieve - if not, how will you know when you can slow down? When imagining what your ideal income situation looks like, try ALSO imagining what your work/life balance looks like as well.

Read More: How to Take Back Control of Your Money and Increase Your Income

What to Do Now…

If all you did is skim or read the list above, then I encourage you to pause now and go back to the mindsets that resonated with you most. Grab a piece of paper or open a blank document on your computer and try the activities I recommended. They only take a few minutes! After completing one activity, pause and reflect on how you feel after. Do you feel even the slightest shift?

If yes, now you know what you want to try and do more of to keep that shift going. Use this as your starting point for your journey!

If not, that means something, too! Try and reflect on WHY this may not have worked for you. Maybe this isn’t actually the root mindset issue you’re struggling with, or maybe you’re struggling with it for a different reason. There is still plenty more to explore here!

Want to read more about common harmful money mindsets and practical steps you can take to start your healing? Click here to browse the 5 Mindsets Series!

Are you ready to take your financial journey to the next level? Then you may be ready to check out the More With Money Academy!

This ever-growing collection of online courses and trainings are specially designed to support entrepreneurs like you on your path to financial wellness. The Academy contains carefully designed courses that are easy to understand and implement so that you can be empowered with the practical concepts, streamlined systems, and powerful mindset to transform your business and personal finances.

Click here to explore what the More With Money Academy has to offer!

I'd love to continue the conversation in the comments! Feel free to share your thoughts.

Until next time!