In the last entry, we explored the significance of maintaining a healthy financial outlook. Here, we’ll look at how society’s tendency to create a scarcity mentality limits our capacity to accumulate the type of money we believe we deserve. How to detect a scarcity mindset, as well as a few short methods to move over it, will be discussed. To assist you figure out what you’re doing and how to get to where you want to be financially, I’ll go through how having a scarcity mindset may effect your wealth and the financial success framework I built some years ago. So, What Is Abundance Money Mindset?
The Problem with the Scarcity Mentality When It Comes to Money
The scarcity mentality is defined as. The phrase scarcity mentality was coined by the author of The seven Habits of Highly Effective People, Stephen Covey, many years ago. He hypothesized that those with a scarcity outlook saw the world as a fixed amount of space. One person’s share of the pie means less for the rest of us. Especially in the business environment, where promotions, pay hikes, and career progress are common, the scarcity mindset that is ingrained in most of us is a major contributing factor.
It’s a common belief that riches is difficult to build since money is scarce. In their views, money is a finite resource, making any plans to acquire more of it plagued with difficulty. A word of advice: don’t let the size of your primary bank or investment account dictate how you think about your financial future. Therefore, you should abandon your restricting scarcity mentality and replace it with an expansive abundance mentality when it comes to your financial resources. By shifting your perspective from one of deprivation to one of plenty, you may greatly increase the likelihood of reaching your financial goals.
The Mindset of Financial Abundance is also Real, but Much Less Common
The phrase “abundance mentality” was also made up by Stephen Covey. Those who have an Abundance Mentality are certain that there is plenty for everyone. Do you know someone who has a “abundance money mindset”? If so, you know you’ve worked of some of the most interesting people you’ll ever meet. They’re kind, encouraging, and generous with their knowledge and time even though they know it will benefit them in the long run. These types of people are rare, yet they always leave an indelible impression. If they don’t receive the job or promotion they seek right immediately, they don’t lose hope since they understand there are other possibilities waiting for them. They would not be in a hurry because they know there will be more chances to succeed tomorrow, even if they blow today’s.
Where Does the Scarcity Mindset Originate, and What Are Some of Its Adverse Effects?
In my last article, I highlighted the work of Stanford psychologist Carol Dweck on the topic of fixed mindsets and how they might inhibit an individual’s capacity to amass money. A scarcity mentality is an attitude that inhibits innovation and restricts individuals to small-minded financial considerations. This entrenched scarcity attitude will convince you that you have not enough, that you never will have enough, and that there is minimal you can do about it. This entrenched attitude breeds dread and poor self-esteem over time and stops those affected from learning and attempting new things. Even worse, it might result in envy and even hostility against others who have achieved success in life. This compels individuals with this perspective to make comparisons with others, including friends and relatives. If one finds up the competition with these other individuals, he or she may wind up getting nothing they desire while the others have all they desired. The outcome is meaningless and helps no one.
What Are the Signs That I Have a Scarcity Mindset?
Most likely, you have some degree of a scarcity perspective since there are very few of us who completely have an abundance attitude. According to the National Science Foundation, an average person has between 12 and 60,000 thoughts every day, of which 80% are negative. It is challenging to avoid having a stuck scarcity attitude that restricts progress when your mind is operating in such a negative way. If you want to know if you have a scarcity mindset, ask the following questions, but remember that being honest with yourself is the only way to develop.
- When I desire something, do I take risks?
- Do I give up when I don’t get what I want and pretend I didn’t want it?
Never enough success?
- Do I hoard information or fear losing anything by sharing?
- Do I judge my achievement by others’?
Hacks for Abundance Money Mindset you can use right away
- You probably have at least a little bit of a scarcity mindset. The good news is that you can change the attitudes that may be weighing you down with just a little more work.
- Stop being jealous of other people’s success and instead be interested in how they got to where they are.
- Stop assuming that you are the only person who has challenges you can relate to. Many people have dealt with problems like these and gotten through them.
- When things don’t go the way you want, turn the situation around and learn from it. For example, if you didn’t get the job, tell yourself it wasn’t a good fit and start looking for a better one.
- Stop hurrying, concentrate on what you want, and devise a strategy to get it.
- Set big goals that will change your life so much if you reach them that they are worth making sacrifices for.