I’ve made tons of financial mistakes, even as a money coach and personal finance author.
One big money mistake I made, was not listening to my financial adviser when she tried to get me to move into real estate investing and start creating passive income 4 years ago.
I held onto that mistake for years and spent years beating myself up for not listening to her, until I realized it was affecting my relationship with money.
When we hold on to a financial mistake and we keep thinking about what we should have done better or we keep replaying how badly we screwed up, we teach our mind to focus on that mistake and we keep the energy of that mistake alive and store those memories in our bodies.
The longer we keep that energy alive, the more we berate ourselves, blame ourselves and victimize ourselves, the more we start to doubt ourselves with money, which impacts the way we behave with money in the future,
If left unresolved and unhealed, this doubt and victimization can also be passed down from generation to generation.
How can we rebound from financial mistakes?
1. Make a list of all the financial lessons you’ve learned from the mistake
If you haven’t noticed yet, Wealthy Money exists because of all my financial mistakes and the lessons I learned from them.
I’ve learned a lot more about money from my mistakes than from my successes and I think that’s what makes me a really great coach because I can empathize with my clients but I quickly guide them to shift their perspective.
Make note of the lessons and what you can do better and then apply what you’ve learned.
There’s no point in making the same mistake twice.
2. Take note of what the mistake taught you about yourself, especially your strengths
All our mistakes help us meet ourselves.
Take the opportunity to make notes about what you’ve learned about yourself and any new skills you’ve acquired along the way and then figure out how you can use your newly discovered strengths and skills to help you uplevel.
Make note of your weaknesses and decide how to manage those. I prefer to hire people who are better at things than I am. This is why I have a financial adviser, a book keeper/ accountant and a tax consultant.
It’s also why I outsource so much of the work that gets done in Wealthy Money.
3. Cut your losses
When you see that you’ve made a financial mistake, cut your losses.
Quit while you’re ahead and cut your losses.
This is one of the hardest things for me to do because I don’t want to come across as flaky and indecisive, so in the past I’d let situations fester and ended up losing way more money than I needed to.
Luckily I’ve grown, these days I would rather look indecisive and confused than willingly lose money.
4. Find the financial opportunity in the challenge
Whenever I realize I’ve made a major financial mistake and I find myself spinning, I ask myself a simple question: “What financial opportunity am I not seeing in this challenge?”
I sit and meditate on that question for days on end and inevitably an answer will come.
I reframe my mindset, in order to can make the best of a bad situation.
When I realized my financial mistake in NOT listening to my financial adviser about getting into real estate years ago, I decided to start doing live videos about my challenges with expansion and to start the Wealthy Money Property Magicians Podcast and learn about real estate in a way that benefits, not just me, but others as well.
My big mistake of being US$60,000 gave rise to Heart, Mind & Money, which then gave rise to Wealthy Money.
Sometimes a mistake is just the universe’s way to help us self correct and get us back on track.
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What financial mistakes have you made?
How is holding onto these mistakes holding you back financially?
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