I think this right here is the root of your problem.
It seems you have a combination of low self-image/self-esteem combined with a fear of failure or at least being seen as one which results in you avoiding engaging in things or with people because you feel that you are not good enough and therefore are guaranteed to fail and if that is the case, why bother trying in the first place.
To use an analogy, you give up at the starting line because you are afraid you will lose the race.
The thing is, if you give up or decide to not even try out of a fear of failure, you are creating a situation in which you have no chance to succeed since you can't succeed if you don't even try.
Then, as you allude to, you feel like a failure for causing yourself to fail by giving up which then feeds back into your sense of inadequacy which feeds into your inclination to give up and so the vicious cycle continues like a rotating whirlpool just sucking you down.
We all have fears of failure, we all can be hard on ourselves, we can all feel inadequate or unsure when venturing into unknown territory with unknown people. You are in no ways alone in this and these kind of problems are more common than most people realize. Even those that beam with confidence will often double guess themselves and can be their own harshest critic, I know I am.
However, to be perfectly blunt, that is life and you have to learn to grow as an individual and overcome your own self-imposed obstacles.
For starters you need to stop with the overly negative outlook, both of yourself and of others.
As for your negative outlook of yourself, try building up self-esteem, look at what you are good at while accepting that there will be things you are not the best at, bolster and grow your strengths while acknowledging and working to overcome your weaknesses.
If you can't see the value in yourself, it's going to be very difficult for other to see it too.
Also you may not realize it but you are putting down others as well with this negative outlook, you are assuming that people are essentially going to be unkind and unaccepting of you. While there are a lot jerks out there, there are also a lot of real nice and understanding and accepting people out there who couldn't care less about things like someone being a little socially awkward.
Heck, I have met a number of people that initially came off as complete jerks but after being shown a little understanding and kindness they completely changed into an incredibly nice person, it just ended up that they were afraid that others were going to be jerks to them so they took the stance of being a jerk to try to "protect" themselves from it, a mindset that honestly makes no sense whatsoever if you actually think about it.
Basically, don't be so quick to prejudge others negatively and assume that they will view you negatively, if we all did that we would all see each others as jerks, moreso than we already do lol, and that would be a terribly miserable state to live in.
So at the expense of perhaps coming off a tad cheesy, people are like rooms. Close it off and shut yourself in and the room quickly becomes stuffy and you will eventually suffocate yourself. So seriously, just open a window let all the bad flow out and let some fresh air and sunshine in and when you are ready, open the door to the wider world.
Sure, it may seem difficult and you may not know how you are going to do it but there is no advice that anyone can give you that is guaranteed to work for you. You just simply need to crouch down, prepare and tell yourself it doesn't matter if you win or lose, you are going to run that race because as we already know if you give up at the starting-line you have already lost.
It's better to try and fail, learn from it, try again and make some progress than to give up and get absolutely nowhere.



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