I was in a discussion recently and the topic was “Financial Limitation Mindset”. That term refers to “negative financial thinking that results from a poor relationship with money”. This is related to but differs from the more global concept of “scarcity mindset” which embodies the belief “one does not have enough, will never be able to have enough, and there is nothing that can be done about it”. Financial Limitation Mindset and its opposite,“Positive Financial Mindset“ are  central tenets of Financial Social Work.

Those with a Financial Limitation Mindset live without much thought about a life empowered to create a different future. Often, those who live at the core of this thinking live that way due to intergenerational or social messages internalized during the formative years. Perhaps this way of thinking was modeled by parents or key socializing kinship members. Sometimes this is a legacy mindset passed down through the generations.

Unfortunately, with this type of mindset, life tends to be seen and experienced through a lens that offers little hope. Creativity, problem-solving abilities, self-determination, and a sense of confidence are      often diminished through a restrictive view of one’s circumstances. The evidence of this is demonstrated  in that what we believe is usually the result we achieve. This mindset of limitation discourages people from learning the necessary skills, accessing resources, and the helpful tools that make it possible to take control of not only their money, but every aspect of their lives.

How is a Limitation Mindset expressed?

• Loss of hope, believing there is no ability to create a better financial future. Hopelessness stops growth and opportunity.
• Fear of losing benefits if they increase their income, savings, or investments. For example: I have a dear friend who is afraid of making money “because I might lose my social security”. She would rather live in a smaller, fixed, and pre-determined box, than consider possibilities of expanding her income and options, or exploring ways she could keep her income AND her benefits.
• Expression of past traumas regarding money, negative experiences of being told what to do with their money, or living with resentment of someone else controlling their lives or their finances.
• Resentment in the good fortune, financial freedom, and positive lifestyle changes of others
• Loss of trust in self, believe the “system” holding us back is more powerful than our innate ability to change the circumstances of our lives
• Afraid that financial success will result in the loss of important relationships with family, friends, and community members if their financial circumstances substantially improved for the    
• Belief that God has given us a particular fate. “This is as good as it gets”- “I should not ask for or expect more” “This is what the universe has assigned to me.”

 In my work as a coach, financial social worker, and consumer of the financial tools available through my affiliate partner company, myEcon, I help people, especially Black women, holistically create a better future. I use the financial tools at our disposal, and I help people to understand the thoughts, feelings, and attitudes of living with a Financial Limitation Mindset to look at how that thinking affects their financial wellbeing and overall life. Often, I see individuals and families avoiding the topic of money or procrastinating in their efforts to improve their financial circumstances. Sometimes, the task seems too big, the hole too deep, or the work required too difficult. Of course, doing this work provides opportunities for me to look at the times and areas in my life where my own thinking and behaviors about money and finances have become limited. The good news is there is always hope.  I am provided unlimited opportunities for my own transformation as I work with others through theirs.

 In helping to create a Positive Financial Mindset in which clients are encouraged to develop a positive and hope-filled relationship with money, I am afforded the opportunity to help people access their birthright: a life filled with hope, potential, possibility, and abundance. 

I firmly believe the following:

• Hope opens the way for change
• Change is the only constant in life
• Financial literacy is essential.
• Money is infused into every aspect of our lives.
• Forgiveness is an important component to healing. Sometimes we must forgive ourselves from past mistakes before we can fully heal our other relationships.
• We must take the mystery out of money management. Money management is essential, but it doesn’t have to be complicated and everyone is entitled to it regardless of how much or how little one earns. Too often it’s made to be intimidating, expensive, and threatening for consumers, ratcheting up fear, and contributing to people not getting the support they need. Basically, money management is helping people pay attention to where their money is going, why/how it gets there, having control over where it goes, and understanding the need to operate in systems that provide the most benefits for our money.
• Helping my coaching clients make connections between the financial, mental, and behavioral components of their lives.
• Money is a tool to assist us in our growth. I ask my clients what they want their money to do for them. While many people work for money, the truth is our money is to work for us.
• I need to know, “What’s in it for them?” My clients are encouraged to think about and envision a better and different future in which they have more control over the money in their lives, based upon the values that resonate with them.
• Setbacks can be a part of the change process and are inevitable in life. When we can plan for setbacks and learn from them, they can be invaluable opportunities for our growth and development.
• “Get Rich Quick” thinking comes from a poverty mindset. It usually takes some time to build sustainable wealth.’
• There is power in telling our authentic stories. Acknowledging growth and progress reinforces one’s ability to take ownership of significant change and encourages others to know what is possible.
• One must never confuse net worth with self- worth. The soul is priceless.

 When we develop the skills to challenge a mindset of financial limitation, we increase our ability to evaluate our progress, and connect to the small patterns that eventually come together to create large changes. Those changes over time become the positive patterns of our lives. While we can all recollect the major events that have impacted our lives, change is generally a subtle process that evolves over time. It is for this reason, that people are often unaware of the significant changes taking place within the small moves they make. Encouraging people to evaluate their progress, accountability, and positive reinforcement allow us to connect to the small changes that eventually come together to make significant changes in our lives. Sooner or later the realization comes that one’s entire life has become better!

 I love working to change Financial Limitation Mindset in our community, and I love collaborating with others to make that change happen as well. Let’s support one another and our community in cultivating a Positive Financial Mindset in 2023.

Let’s get started now!

Here’s to peace, joy, and growth- now and in the new year!

Sunya Folayan

Cashflow  Strategist