Tag Archives: Scarcity Mindset

An Abundance Mindset

An abundance mindset is the opposite of a scarcity mindset.  A scarcity mindset is one where a person is consumed by fear, desperation, and self-centeredness due to the obsession with not having enough resources to live and thrive.  An abundance mindset is a mindset where a person feels that there are enough resources and opportunities for everyone to succeed and live a fulfilling life.

There are many things in life that we do not have control over.  We do not get to pick our parents, how we were raised, or what resources were available to us as children including nurturing, food, medicine or education.  As adults, however, we do have the power to make the decision as to how we think and react towards every situation.

Our ability to think and how we view situations is a powerful tool.  It is critical to developing a healthy perspective if we want to be successful in life.  Just as negativity attracts negativity, positivity attracts positivity.

I am not referring to a Pollyanna mindset.  Nor am I referring to faking your positivity to the extent where it is transparent and the people around you just label you a phony.  I am referred to a hopeful mindset.  A mindset that will allow you to be happy, help people, and expand your horizons.  The best mindset to have to achieve all of those goals is to develop an abundance mindset.

Honesty

Honesty is a resource that we cannot have too much of.  Many people think of honesty as not telling lies or taking something that does not belong to them.  Yes, you should always be truthful and not steal.  In this context, I am referring to gut-level honesty.  This is the type of honesty that will allow you to be true to yourself and not fall victim to a scarcity mindset.

Do you have self-respect and value who you are as an individual?  Do you accept your current lot in life as a starting point for what’s next?  Do you have personal, professional, and financial goals that you are currently working on?  A person who can answer yes to those questions is highly likely to have an abundance mindset.

Fear

There is positive fear that tells you to look both ways before walking across a busy intersection.  There are also negative fears.  Scarcity is a negative fear.  Scarcity is negative because it consumes you and holds you back from taking the calculated risks that are needed to succeed.

A person who has an abundance mindset is sure to feel fear along the way.  To overcome that fear, they take hold of the steering wheel.  They do not let their emotions hold them back.  They pick up the ball and run with it.  They might fail.  They might fail more than once.  They might never succeed, but it will not be due to the lack of not trying because fear held them back.

Esteem

Many people in society have a scarcity mindset.  They live in fear to some extent.  They are afraid to take risks because they might lose their positions, money, or some other sense of security.

People who have an abundance mindset have high self-esteem.  They have to have healthy self-esteem because they are aware that they are different from other people.  Nobody generally likes feeling different from their fellows.   It does not, however, seem to bother these people who have an abundance mindset because they embrace their difference by moving forward towards their next success.  They do so while those with a scarcity mindset sit back and wallow in fear or envoy.

Comfort

Those who have an abundance mindset often appear cool.  They display grace under pressure.  They wear life like a loose fitting garment.  They are comfortable in their own skin.

There is a reason for their aura.  Don’t confuse it with being blasé.  They are in competition, but not with other people.   They generally see people more as conduits than threats. They are in competition, but it is based on winning by executing a plan.  They do not harbor negative feelings towards their competition.

If it is a competition between two people and they do not win, they humbly congratulate the victor.  They do not fall prey to resentment.   A person who has an abundance mindset is grateful for the challenge and for the opportunity. They feel that there are other opportunities for everybody to succeed and move on to the next challenge.  They have a growth mindset and will diligently prepare to do better when the next opportunity presents itself.

Big Picture

People who have an abundance mindset do not settle.  They think big.  They focus on the long-term.  That is why they are successful investors.  Where a person might cower at the thought of volatility, a person who has an abundance mindset does not fall victim to shortsightedness. They have above average emotional intelligence.  They know that change is constant and embrace it.  When others are selling low, they are looking to buy value.

Conclusion

It is rare to find people who have an abundance mindset.  Unlike unicorns, they do exist.  There might not be any in your inner-circle, but I can tell you where to find them.  They can be easily found online.  They gather on blogs and on forums.  There is a whole community of these folks who are working on achieving financial independence by embracing an abundance mindset as well as empowering others to do the same by sharing their stories.

These folks come from many different walks of life and can be found at different stages of the journey. Some are just starting out in their careers and working on eliminating debt.  Some are millionaires by mid-career.  Others are multi-millionaires and retired while they were still young enough to live out all of their dreams.  If you want to meet some of these folks, check out my Resources Page.  I hope you get to meet some of them and take advantage of what they freely have to offer you.

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The Scarcity Mindset

Even though you are doing your best to actively manage your finances, do you ever think that you might not have enough money to pay all of your bills, enjoy life, and save for a meaningful retirement?  Do you feel lonely, isolated, or even terminally unique?  Do you make financial decisions out of fear?  Does the thought of early retirement and drawing down your assets make you feel like panicking?  Do you project about the future and only see things getting worse?  If you do, you might have a Scarcity Mindset.

Living in Fear

If you have ever studied Economics, you learned that Economics is the study of limited resources.  The Scarcity Mindset is rooted in the fear of not having enough.  The scarcity mindset manifests itself in extreme self-centeredness.  It is based on an obsession with not having enough resources to meet both your needs and your wants.  No matter what course of action a person takes who has a Scarcity Mindset, the glass always appears to be half-empty.

Why do people have a Scarcity Mindset

People who have a Scarcity Mindset are focused on loss aversion.  Many people who have this mindset were once underprivileged or are currently struggling financially.  Everyone has limited cognitive space in their brain.  People who have the scarcity mindset have unmet needs.  These unmet needs cause the brain to focus on these deficits instead of focusing on the tasks that are at hand.  It is not based on a lack of intelligence, but a constant interruption in the flow of thoughts.

Short-term thinking

The Scarcity Mindset causes one to focus on the short-term.  It draws attention to the urgent.  A sell-off in the stock market would cause a person who has a Scarcity Mindset to panic and sell low because the recent loss will wipe out their finances.  They lack the foresight to see the correction as a short-term blip on the radar.  People who are stuck in this mindset also think that current situations will never change or improve.

Mentally Draining

The consistent mental obsession with not having enough rapidly drains the brains battery.  The focus on scarcity is mentally exhausting.  The brains finite mental resources are always in a state of debating trade-offs.  For example, it is exhausting to debate if you will have enough money to cover future expenses.  It is a mental debate that can occupy a person’s whole day.  The Scarcity Mindset truly is a form of suffering.  Other decisions become clouded because of this mental fatigue.  Because of this lack of mental energy, people are more prone to make poor decisions since their mental debates can lead to irrational solutions.

Symptoms

The symptoms tied to having a Scarcity Mindset are easy to identify in your life.  Hoarding things because of the fear of running out is a major symptom of the Scarcity Mindset.  Complaining about your general living situations is another symptom because there is a lack of satisfaction in your life.  Living in chaos as the result of people pleasing, addiction, lack of production, or self-deprivation.

Barrier to Wealth

Having a Scarcity Mindset is a barrier to building wealth.  If your mind is consistently producing a negative message, it is difficult to make positive financial strides in your life.  To succeed as an investor, you need to be able to think long-term and can handle some degree of short-term market risk and uncertainty.  If you panic based on daily volatility, it will not be good for your investment returns and only add to your mental anguish.

How to Change the Scarcity Mindset

The Scarcity Mindset is all in your head.  It is not easy to break away from this mindset.  It is possible, however, if you are willing to work on changing your thought process.

  • Write a list of everything in life you are grateful for. This list should include everything including food, housing, health, friends, family, and work.  If it is a source of gratitude, add it to the list.  Review this list at least once per day and more often if you are feeling negative.
  • Don’t compare how you feel too how others are living. Don’t compare yourself to others on any level.  Don’t try to keep up with neighbors, friends, or siblings. Live your own life.
  • Build your self-esteem through positive actions. Take a class. Volunteer to help people who are in worse financial or physical shape than you are. Take on extra responsibilities at work.
  • Focus on the present moment. Don’t project into the future where there is fear.  Don’t rewind to the past to feel resentments.  Keep your mind focused on what is currently in front of you.  Refocus as many times as you need to during the day.
  • Look at setbacks as a learning experience. Repeating the same mistakes, but expecting different results is a sign of insanity.  When you make an error, learn from it.  Try a different approach when faced with a similar situation.
  • Build closer friendships. If you want to gain a friend, becoming a better friend.  People are not going to come looking for you.  It is up to you extend your hand and keep reaching out to others.
  • Avoid negativity. Avoid the political and financial media.  There are great things happening in the world.  You just will not find information about those things in the media because they do not sell.  Check out this blog’s Resources Page for unlimited positive blogs, forums, and podcasts.
  • Reduce clutter and add order to your life. Embrace minimalism.  If you own things that you no longer use, give them away.  Whatever those things might be, they might be more useful to others.  Some examples are old books, clothes, sporting goods, or electronics.

Conclusion

Don’t beat yourself up if you feel you have a Scarcity Mindset or some of the symptoms.  The good news is that you can change this mindset.  It will take time and effort, but you can do it.  If none of the above suggestions are helping, seek professional help from a therapist.  After you break away from the Scarcity Mindset, you can start working on developing an Abundance mindset.  That is when life starts to become more of an adventure than an obsessive based existence.

Do you feel that you have a Scarcity Mindset?

What are some of the steps that you have taken to change how you think?