Three Obstacles Blocking Your Path to Financial Freedom

Three Obstacles Blocking Your Path to Financial Freedom

by Joseph September 22, 2020

At some point in our lives, we’ve all aspired to be financially free. The thought of being able to do truly fulfilling work, partake in all sorts of exciting activities, and know that we can weather any recessionary storm is priceless. But despite desiring this outcome, we are sometimes our own biggest obstacle in making it come true.

How is it that we can both yearn for financial independence, yet stand in our own way? It’s because we might be unaware of the challenges associated with achieving this. If we aren’t conscious of the specific roadblocks that we may face, or the negative thought and behavioral patterns we could slip into, we risk prolonging the process of creating sustainable wealth.

Here are three major obstacles you may encounter as you work towards becoming financially free.

1. Having a Fixed Mindset instead of a Growth Mindset

Illustrated heads with sapling and tree inside

You will inevitably run into difficulties as you put aside money for your future. You may be temporarily unemployed, struck with sudden, unexpected expenses, or forced to work long, grueling hours. During these times, you might question your ability to ever attain financial freedom. You may feel that your skillset is inadequate to amass wealth, or that only the “1%” can live a life devoid of financial worries.

You must not view yourself as a helpless victim incapable of triumphing over life’s many hardships. It is crucial you understand that building wealth is akin to a journey, and that any steps you are taking toward this goal, however small, are ultimately beneficial. If you see life’s setbacks as lessons to learn from, as events that will refine your character and make you a more knowledgeable, adaptable professional, you will increase your earning power and develop in a way that is conducive to building wealth.

2. Feeling the need to “Keep up with the Joneses”

Illustration of a man with money flying away

Many of us know the dangers of living beyond our means, yet we still fall into this trap. Why is this? It is because the emotions that lead us to needlessly spend (greed, insecurity, impatience, etc.) are normal human emotions we can all be susceptible to. Instead of allowing these feelings to overcome you, recognize them for what they are, and remind yourself of the terrible consequences of giving into them.

As opposed to viewing your colleagues and acquaintances as competition, as people you must outshine and appear better than, see them as potential mentors and comrades that can help accelerate how quickly you grow your savings.

3. Not adopting a long-term view towards your finances

Illustration of binoculars

Are you willing to delay gratification and invest money today, so it grows into something bigger tomorrow? Are you getting the best rates on the retirement plans you’re invested in? When making major purchases (car, home, etc.), are you ensuring that you’re getting the most value at the lowest possible price?

Continually assessing how your present-day decisions are affecting your financial future will benefit you in the long run

Sure, you can embark on the journey towards financial freedom by yourself… but there is much to gain from working with a credentialed financial planner. Someone who has achieved financial independence for himself and has a proven track record of positioning his clients reach the same milestone. 

Find a highly-qualified and well-vetted independent financial advisor through the New Jersey Financial Advisors Network.

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