A subtle psychological reason behind low income: playing defense. Most people are wired to protect their current standard of living, not grow it.
Why do so many people struggle to grow their income?
The reasons can be both psychological and technical. I’m convinced that once we correctly identify and solve the psychological reasons, everything else becomes easier.
There’s one subtle psychological cause of low income that people rarely notice: playing defense. A large percentage of people are focused on preserving and holding onto their current standard of living and comfort.
This can be a subtle mindset that a person doesn’t really track or understand in themselves. If you ask them directly, they’ll of course say: “no, I’m not clinging to what I have now, I want more.”
But if we look impartially at their actions, we usually see them repeating a familiar, uncomplicated set of behaviors (their work) that produces a very predictable result (their income).
By continuing to do what we’ve always done, we essentially extend the same result we already have into the future. It’s a certain form of stability.
Hiring your first employee, on the other hand, is a move from “defense” to “offense.” The same goes for moving from offline to online and building your first website. Or starting a blog. Or opening your own warehouse. Or renting a bigger office for a team. Or opening a branch in a new city. Or taking on a business partner.
Most of us know perfectly well what actions could meaningfully increase our income. But small psychological nails quietly keep our shoes nailed to the same spot.
Learning to switch yourself from “defense” mode into “offense” mode is not a trivial task. Our brain already has well-worn routes for our habitual behaviors. We already know what result we’ll get when we act a certain way. After all, we want a stable income we can count on, because it’s what supports our life.
That’s why most people often get stuck at a certain plateau in their earnings. They already have something to lose, and they subconsciously start clinging to their current clients, employees, and suppliers instead of moving forward and testing new growth hypotheses.
When you shift into “offense” mode, it becomes normal to invest your time and attention into directions that might not pan out, and to spend money on things that might not pay off.
Moving forward and cutting through uncertainty is never an easy or simple process. But it’s the price of a new, better quality of life.