5 Reasons Why Your Upbringing Might Be Keeping You From Getting Rich

 

One does not need to know about Psychology in order to know that how we are raised affect the way we think, act, form our habits, and make our decisions. Included here, of course, is our financial management.

Some were brought up by money-savvy parents, some by business-minded parents, but many times, one’s upbringing also has negative impacts later on. However, there is no need to play the blaming game on your parents here; what is important is to see where the problem lies. From there, change your perspective, daily acts, and habits accordingly.

 

As mentioned, problem-solving starts with identifying the problem. If you think you were taught values that affect your financial management and decision-making right now, the next step is to find what is that exactly. There are many possible answers, but here are the 5 common mistakes parents make in their children’s upbringing. These mistakes would turn out to be detrimental to their children’s future financial standing.

 

  1. You were spoiled as a child.

 

Your parents tend to… live largely or have expensive taste. They always provide for your needs. Even your wants and every whim are (at least) almost always granted. This is not limited to the rich. Even couples from the middle class and lower have the tendency to spoil their children, especially when they have an only child (in some cases, the youngest, or sometimes, the oldest). Some also tend to live large and/or have expensive taste.

You tend to… be a bit entitled, sometimes lazy. It is likely that you find it more difficult to appreciate something’s worth, or the hard work required to earn things, titles, and rewards in life. This is because of your formative years of having it so easy.

If your parents were always there for you and took care of all the obstacles growing up, you also might have grown dependent and therefore, find it difficult to decide for yourself and to defend yourself. Financially, this means you might be prone to fraud and scams.

What you can do: Challenge yourself to try and live simply and on a strict budget. Instead of spending time on activities that require you to spend money, try habits and hobbies that are free or only require small investments. Try working out as an alternative to shopping; If a gym membership is too costly, try to buy home equipment and read and watch videos and tutorials online.

 

  1. Your parents were too frugal and thrifty.

 

Your parents tend to… save too much. At times, it results in having to spend more in the end. There are also those who tend to do this in order to teach their children a lesson; however, there is the tendency for most to overdo it, and such results to negative thinking and habits for their children in adulthood.

 

You tend to… overindulge yourself. This is to compensate for years of feeling “deprived” of your wants. Your binge shopping is some sort of ‘rebel’ against the years of not being granted even occasional wishes.

 

What you can do: Rather than using binge shopping as your way of revenge, why not aim for financial prosperity instead? It is also a good idea to have a serious talk with your parents regarding the issue to understand their motivations and reasons as well.

 

If you really have problems with your shopping habits, it is a good idea to stay away from credit cards. If you really need to have one, ask someone reliable to keep it unless when you have to use it (ex. Traveling, etc.). You might also want to put automate your savings. If these are not enough, consider seeking professional help.     

           5 Reasons Why Your Upbringing Might Be Keeping You From Getting Rich

  1. You were not taught about money growing up.

 

Your parents tend to… be dismissive or quiet when it comes to financial matters and decision making on money matters and investments. This is most probably a reflection of their lack of knowledge on financial management as well. If such a ‘tradition’ is not broken, the family will be stuck and will barely go up the ladder, living in the cave of ignorance.

 

You tend to… find yourself lost or confused in times of financial crisis or financial planning and decisionmaking. There are many possible bad habits that are pulling you down and keeping you from getting rich such as binge shopping/overspending, big debts, prone to being scammed and making the wrong investments.

 

What you can do: Educate yourself. Thanks to the Internet, no need to hassle yourself for a trip to the library or to pay for a professional (although the latter is not at all discouraged). You can start by reading articles from websites like ours and watching videos of explanations and tutorials online. If these are not enough, consider consulting a qualified financial advisor/expert.

 

 

  1. You were raised to be very charitable and conscientious.

           

Your parents tend to… emphasize over and over again the value of giving out to charities and various causes and lending a hand to the needy.

           

What you can do: Instead of giving out too many different causes, organizations, and charities, why not ask yourself which ones really matter and are of great importance to you. Donate to them within your means, and make sure you are not going beyond what you can afford. Looking at it differently might also help. Think of it this way; instead of giving out big now, why not allot more on investing first. Once you grow your money, you get to donate more, and you also get to have more for yourself and your savings.

 

If you are the kind who tend to be overly charitable to family, why not look for potential business partners within the family. Of course, do not do anything rash; you also have to accept and admit defeat when no one in the family is meant for business. But when you do find some, it might be a better idea to helping out on their investments rather than continuously giving them gifts. As the proverb goes, “give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime.”

 

  1. Your parents were used to and raised you to be employees and discouraged investments.

 

Your parents tend to… demonize business and other forms of investments like stocks. In some cases, they generalize and demonize both the elite and getting rich. What is important to them is to get your degree, work a position for a company with a good name and pays well, and climb your way up the ladder until you get the vice-presidential positions. Never the very top, though. Never your “own” boss.

 

You tend to… just be satisfied with a steady income as an employee. However, if you want to get rich, even having a good salary would not grow you lot if you just keep them all in banks.

 

What you can do: You have to learn to invest. There will be risks, but do not be too afraid of it. Failure will also be part of it. However, really take the time to study the market and hone your decision-making skills when it comes to your investments. Learn from your mistakes. Explore different investment ideas, but it might be a good idea to focus first on one which you think you can work with best.

 

 

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C.E.O @ The New Savvy
Anna Haotanto is passionate about finance, education, women empowerment and children’s issues. Anna has been featured in CNBC, Forbes, The Straits Times, Business Insider, INC and The Peak Singapore. She was nominated and selected for FORTUNE Most Powerful Women conference in 2016 (Asia) and 2015 (San Francisco, Next Gen). Anna has 10 years of experience in the financial sector and is currently a Director in Tera Capital. Her previous work experience includes positions at Citigroup, United Overseas Bank, a regional role in Business Monitor and a boutique private equity firm based in Shanghai. She graduated from Singapore Management University (Finance and Quantitative Finance).

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