How To Kill Your Limiting MONEY Beliefs To Unlock Abundance | Mark Matson

Mark Matson, Lewis Howes, and others delve into the complex psychology behind money and investing, illuminating the need to confront deep-seated beliefs that influence financial behaviors and decisions.

People often have deep-seated beliefs and "screens" about money that limit their financial potential

Individuals develop money-related beliefs and mental models from their upbringing and life experiences, which can either empower or constrain them

Mark Matson describes these beliefs as "money demons," a belief system embedded in language that individuals mistake for reality, leading to self-fulfilling prophecies. Matson shares his own "money demon" experience, thinking that employees are too expensive, that he wasn’t a good manager, and how such beliefs can block opportunities.

These money "demons" or limiting beliefs must be identified and actively confronted

Matson discusses the need to identify and confront these limiting beliefs. The belief system passed down to Matson from his father was about the American dream, but it contrasted with his grandfather's belief that money was evil and wealth was associated with greed and criminality. Matson defines a "screen" as a psychological frame created from upbringing, which can determine whether one sees themselves as a victim or empowered to succeed. He emphasizes understanding the psychological payoffs of these beliefs to change them consciously to fulfill one's mission. An example is when Matson shared a vivid memory of his grandfather projecting his negative perception of wealth onto Matson's father.

Achieving financial fulfillment requires addressing the psychological and emotional components of money, not just the mechanical aspects of investing

Money is deeply intertwined with one's sense of self-worth, security, and personal identity

Money and self-identity are closely linked, as Matson illustrates with his own experiences where his self-worth, whether he considered himself intelligent or handsome, influenced his financial drive. Moreover, during the turmoil of his divorce, Matson had to confront his financial "demon" by negotiating to protect his interests and not giving into demands that could harm his finances. Matson discusses the psychological impact of divorces on finances, focusing on turning his mess into a message.

Developing a healthy, balanced relationship with money involves cultivating self-awareness, letting go of unhealthy attachments, and aligning one's financial decisions with one's deeper purpose and values

For financial fulfillment, Matson argues that it's essential to cultiv ...

Matson and Howes discuss the pitfalls of pursuing wealth without a deeper sense of purpose or meaning, highlighting that wealth alone may not equate to true happiness or fulfillment.

Accumulating wealth does not necessarily equate to achieving happiness or fulfillment

Matson describes an endless cycle where material gains offer only temporary satisfaction, inevitably leading to more desires when comparisons are made with others' possessions. He recounts personal experiences such as the dissatisfaction he felt with his boat upon seeing a larger yacht, illustrating that no level of acquisition truly fulfills one's deeper purpose. Matson shares that regardless of financial status, true happiness comes from within, acknowledging he has been both unhappy with much money and happy with little. He reflects on his grandfather's life in poverty and skepticism towards the wealthy, suggesting that neither poverty nor riches guarantee fulfillment.

Additionally, Matson mentions famous individuals like Elvis Presley, Marilyn Monroe, Howard Hughes, and Prince who, despite their wealth and fame, met tragic ends. He observes his clients and notes a lack of correlation between wealth and happiness, recognizing many affluent individuals who are very unhappy. He also concurs with Howes, acknowledging the existence of numerous unhappy millionaires and billionaires.

Having a clear sense of purpose and values is more important than chasing money for its own sake

Matson advocates for purpose beyond the pursuit of wealth for wealth's sake. He posits that historical figures who have made significant impacts did so driven by robust values and a sense of purpose. These higher motivations provide real joy, happiness, freedom, and fulfillment, aligning perfectly with how one manages money. In his view, entrepreneurs driven by ambitions to improve the world and fulfill personal expression will find more satisfaction than those focused solely on a ...

Mark Matson emphasizes the importance of grounded investment strategies founded on academic principles and data, underscoring the idea that successful investing requires a scientific, disciplined approach rather than speculative methods.

Widespread investment strategies like stock picking, market timing, and relying on past performance are ultimately forms of gambling and speculation

Mark Matson criticizes common investment methodologies such as stock picking, market timing, and track record investing, noting that these strategies are equivalent to gambling with one's money. He describes "investor prediction syndrome," where people seek to predict the best stocks, optimal market entry times, and successful fund managers. Matson asserts that methodologies based on the prediction of future events are flawed, as no one can forecast market movements or stock performance with accuracy because all known and predictable information is already reflected in current stock prices.

These approaches are based on the flawed premise that the future can be accurately predicted

Matson highlights the academic research showing that diversified, passive investment strategies focused on asset allocation offer a more reliable path to long-term growth. He explains that trying to predict the future to make investment decisions is flawed because it operates under the incorrect assumption that future market movements or performances can be accurately forecasted.

Research suggests broadly diversifying across over 100 countries to avoid concentration in one market and focusing on long-term goals like the 'American dream' while not gambling with necessary funds. While Matson doesn't explicitly state investment strategies, he emphasizes a disciplined approach to success, inferring a similar approach for investing.

Successful investing requires discipline, emotional control, and a systematic decision-making process

Successful investing relies not just on knowledge but also on maintaining strict discipline and emotional control. Matson suggests that individuals should have a system of oversight, similar to that used in addiction programs like AA or Gambler's Anonymous, to mitigate addictive behaviors in investing.

Avoiding "toxic" investments like cryptocurrencies, hedge funds, and commodities that lack intrinsic value

Matson warns against "toxic" assets, such as cryptocurrencies, peer-to-peer lending, and commodities—particularly gold—which have not provided substantial returns over time. He characterizes hedge funds as speculative and too costly due to management fees and emphasizes that these forms of investment are analogous to gambling.

Regularly rebalancing one's portfolio to maintain the desired risk/return profile and avoid being swayed by emotions during market fluctuations

Lewis Howes mentions Matson's investment approach that incorporates scientific decision-making without emotional influence. Matson recommends rebalancing, especially in the event of a market downturn, to maintain a desired risk and return profile.

Investors should diversify globally across various markets and asset categories, such as small stocks and value stocks, not ...