The Link Between Self-Worth and Net Worth - and How to Increase Both

Everybody, on some level, knows they have the potential to earn more money and achieve more happiness in life. However, few people understand the importance of the mental aspect of this. Not just having an intellectual understanding of how to make more money, but also how much the behavioral aspect influences our daily decisions and actions. At the end of the day, it's the day-to-day, moment-to-moment things we do that result in us achieving our goals or not. The problem is that perhaps 90-95% of our actions are unconscious, and we run on autopilot most of the time while allowing our conditioning to dictate what we deem acceptable and correct. This is where self-worth and its relation to what we deem acceptable to us in terms of money comes into play. If we grew up in a family where wealth was deemed evil or unattainable, then we are very likely to sabotage any attempts to attain it, even if we decide consciously we would like to make more money.

Understanding Self-Worth

But what is self-worth and how does it differentiate from self-confidence and self-esteem? In descending levels in the outer surface we have self-confidence which is the belief in ones abilities and judgement in specifice situations, knowing that you can perform tasks. Self-esteem is more of an overall evaluation of oneself, generally considered to be a measure of how much we value and like ourselves. These two are both really external measures of ourselves and our abilities. Self-worth however is something even deeper - it is the deep understanding that you have value simply because you exist.

The Relationship Between Self-Worth and Financial Success

One might wonder, how does self-worth relate to net worth? The answer lies in the profound influence our self-perception has on our financial decisions, actions, and outcomes. Individuals with a healthy sense of self-worth are more likely to set ambitious goals, take calculated risks, and persevere in the face of setbacks. They believe in their worth and capabilities, which reflects in their financial endeavors.

Most people unconsciously believe that self-worth is related to our net worth – however this is not true. In fact it is dangerous and can lead us to feel depressed when we accumulate wealth but our self-worth doesn’t change. People who do this are more prone to lead to comparison with others which is the fastest way to feel anxiety and depression (insert research here).

A recent study by Bleidorn and colleagues (2023) reveals that self-worth, rather than self-esteem, is crucial for financial success. Believing in our worthiness to achieve financial goals is essential to avoid self-sabotage, imposter syndrome, and fear of success. Low self-worth can hinder individuals from pursuing lucrative opportunities, negotiating higher salaries, or investing in their future, ultimately impacting their net worth. Prioritizing self-worth over self-esteem is vital, as high self-esteem does not necessarily equate to high self-worth.

Low self-worth is characterized by us not feeling we are worthy of being wealthy – feeling we aren’t “enough” and that others are somehow better or more worthy than us

Limiting Beliefs and Self-Sabotage

Most of these limiting beliefs that shape our relationship with money were deeply rooted in our subconscious minds during our formative years, particularly in childhood. The beliefs we hold about money, success, and abundance are often influenced by the environment we grew up in, the experiences we had, and the values instilled in us by our families and communities.

Beyond childhood, our current beliefs and habits with money are further shaped by a myriad of factors, including spirituality, culture, and philosophy. Our spiritual beliefs can influence how we view material wealth and our relationship with money. For instance, some may believe in the concept of abundance and attracting wealth through positive energy, while others may see money as a source of greed and corruption.

Culture plays a significant role in shaping our financial beliefs and behaviors. Different cultures have varying attitudes towards money, savings, spending, and investing. These cultural norms can impact how we approach financial decisions, such as saving for the future, investing in assets, or even discussing money matters openly.

Moreover, philosophical perspectives can also influence our money mindset. Philosophical teachings about wealth, success, and the pursuit of happiness can shape our beliefs about money and guide our financial decisions. For example, some philosophical schools may emphasize the importance of living modestly and finding contentment with little, while others may encourage the accumulation of wealth as a means to achieve personal fulfillment.

In essence, our beliefs and habits with money are a complex interplay of various influences, from our early childhood experiences to our spiritual, cultural, and philosophical beliefs. Understanding the multifaceted nature of these influences can help us become more aware of our money mindset and empower us to make conscious choices that align with our values and goals.

The Antidote

By addressing issues related to low self-worth and limiting beliefs about money, we pave the way for an increase in our net worth. The key lies in cultivating new beliefs that will prompt the development of fresh perspectives and the adoption of new behaviors. Ultimately, it is our behaviors that drive transformative changes in our lives.

An essential step in this process is investing in our personal growth and development. Internal growth, such as boosting self-worth, translates into external growth, such as financial prosperity. It is crucial not to become fixated on accumulating wealth solely to enhance our self-esteem. Improving our self-worth is something we can start doing today.

Financial wealth represents just one aspect of prosperity, with other forms including social, physical, spiritual, intellectual, and emotional wealth playing vital roles in fostering happiness and overall well-being. This approach helps us achieve a more comprehensive and harmonious state of being.

Wealth Transformation: How to Increase Self-Confidence, Self-Worth and Net Worth Without Sacrificing Either of Them

The good news is that self-worth is not a fixed trait but a fluid aspect of our identity that can be nurtured and developed over time. To enhance one's self-worth and, in turn, boost their net worth, individuals can embark on a journey of self-discovery and personal growth. Here are some strategies to consider:

1. Identifying your Current Position

Understanding your true self-worth is a crucial starting point on the journey towards personal growth and financial success. It involves delving deep into your beliefs and perceptions about yourself, uncovering any limiting beliefs that may be holding you back from achieving your full potential. These limiting beliefs, often referred to as money blocks, can manifest in various ways, such as feelings of unworthiness, fear of success, or a scarcity mindset.

By taking the time to identify and address these barriers, you can begin to cultivate a healthier relationship with money and abundance. This process may involve introspection, self-reflection, and perhaps even seeking support from a therapist or financial coach. Through this introspective journey, you can gain a clearer understanding of your self-worth and start to dismantle any negative beliefs that are hindering your personal and financial growth.

2. Changing your Mindset:

Affirming one's strengths, accomplishments, and capabilities daily can rewire the brain to embrace a more positive self-concept.

3. Seeking Support:

Enlisting the help of a mentor, coach, or therapist can provide valuable insights, encouragement, and guidance on the journey to self-worth.

In conclusion, the intertwining of self-worth and net worth highlights the profound impact our beliefs and perceptions can have on our financial success. By recognizing the connection between the two and actively working on enhancing our self-worth, we can pave the way for greater prosperity, fulfillment, and holistic well-being.

Let us embark on this empowering journey of self-discovery and financial growth, where self-worth serves as the foundation for a prosperous and purposeful life.