Picture this. You have been thinking about building an investment portfolio for years. You fully understand the benefits that financial freedom would have on your way of life. Somehow, despite all of this, you are in the same financial position that you were in 3, 5, 10 years ago…

What is it that has held you back from reaching these goals?

Self Fulfilling Prophecies

If you have never heard this term before, it describes the uncanny ability we have of achieving exactly the standard that we believe we are capable of achieving, regardless of our actual capabilities.

If you wish you were financially free – yet deep down you don’t honestly believe you ever will be – this sets into motion a range of behaviors that you may not even be aware of on a conscious level.

You may make impulse purchases when you notice your savings account has grown a little. Perhaps you spend your time scrolling through social media each morning instead of researching investment property trends. You could tell yourself that you are just waiting for the perfect time to invest.

Enough of these seemingly unimportant small decisions made on a day to day basis, and suddenly you find yourself a year later and having made to noticeable progress towards the goal you swore you wanted.

Shedding the Baggage

Sometimes we doubt what we are capable of because someone- a parent, a teacher, a peer, a boss – made us feel like that at some point in our lives. Sometimes we’ve had a not-so-successful track record when we have tried things in the past. Holding onto limiting beliefs is a sure fire way to stay right where you are now.

The most important step in shedding unhelpful past thought patterns is to identify them. What do you believe about yourself? Then practice the rule of “5 Why’s”.

Example

Limiting belief: “Buying an investment property is a risk”

Why: “Because I don’t know enough about property to make an informed purchase”

Why: “Because I haven’t done the research or sought out professional advice”

Why: “Because part of me doesn’t want to find a good investment”

Why: “Because I’m afraid of using my savings for a deposit”

Why: “Because I feel safe knowing that I have money there in case I need it”

In this case, a fear of scarcity is holding them back from making real progress.

Looking at the Facts

Once you understand what it is that is holding you back, you can challenge your own assumptions. In the example above, this person could minimize risk by conducting research historical data on suburb growth, average property prices, reputation and reviews for builders, data for rental demand, and find property managers that offer a rental guarantee in areas they are interested in.

They could seek out the advice of a financial planner, and work with them to develop a plan for investment at a risk that they are comfortable with. After all of this, they could come to the realisation that investing now could give them far greater financial security in the future than they could ever achieve simply working and saving their extra money.

Your Next Steps

Recognizing a belief you have, that seems logical but is in fact holding you back, could open you up to a whole new world of opportunities. Consider where you want to be, and work back from there.