Scarcity mentality refers to the belief that life is a finite pie, and that if one person takes a large slice, it leaves less for everyone else.
The majority of individuals, particularly in the corporate sector, have been conditioned to think in terms of scarcity. Many of us are held back by a scarcity mentality that prevents us from reaching our objectives.
It is universally acknowledged that we all have a strong desire for money. The dread of poverty drives both the rich and the poor to work as hard as they can to gain more money in order to live a better life.
For many people, happiness and money are closely tied.
But, while everyone is working hard to acquire more money and avoid poverty, have you stopped to consider why some individuals are so successful at it while others are continuously alternating between being broke and having some money?
Experts attribute this disparity to one essential component of success: mentality, which they claim accounts for 80% of success while talents account for only 20%.
Stanford University Psychologist Susan Cain wrote Mindset: The New Psychology of Success, which was the culmination of a 30-year quantitative study.
Carol Dweck discovered that talent was not the most important factor in achieving success. Rather, an abundance mindset — the conviction that ability can be cultivated – is the key.
As a result, cultivating a positive financial mindset can be the difference between meeting your short-term financial goals and attaining your long-term financial objectives.
What Does It Mean to Have a Money Mindset?
Your money mindset is a collection of personal beliefs and attitudes about money that influence how you earn, spend, invest, and manage your finances in general.
Your attitude toward money influences how much you believe you are worth, how much you believe you can make, what you can and cannot accomplish with money, whether you invest, take on debt, or give money away, as well as how you view the rich and poor.
Do you believe, for example, that “money is the foundation of all types of evils”?
Many people’s attitudes on money are shaped by their early experiences; we’re taught from a young age that money is a scarce resource, a rare commodity with which you can’t afford to make mistakes.
If the environment in which we continue to live promotes this attitude, this Scarcity mentality may be carried over into adulthood.
On the other side, if one grew up in a financially stable home, they are more likely to have a “abundance” mentality in adulthood.
Mindset of Scarcity
This is how a scarcity mindset looks, according to Stephen Covey, author of the 7 Habits of Highly Effective People, where he also invented the term “abundance.”
With this perspective, one believes that whatever is present is insufficient, prompting one to hoard everything in order to ‘save’ for the future.
Stress, fear, and anxiety are all symptoms of a scarcity mindset.
How To Tell If You’ve Got A Scarcity Mentality
If you’re the type who worries more about not having enough every day, despite doing everything you can to achieve financial security, you might be suffering from a Scarcity mentality. Here are a few indicators:
- You feel that situations are unchangeable and that there is nothing you can do about it.
- Fear of change – you’d take longer to accept and adjust to change and spend more time complaining about it if you were afraid of it.
- Envy for others – You are extremely competitive and dislike other people’s achievement. When you are envious of other people’s success and the nicer things they have, you forget to be grateful. It makes no difference to your existing situation.
- A know-it-all attitude – people with a scarcity mindset are less motivated to learn and improve. Your ability to improve your financial status is significantly hampered as a result of this.
- Using self-defeating scarcity words on a regular basis – you harbour beliefs and use words like “it is what it is,” “I’m not smart enough,” and “I can’t manage this” that discourage you from pursuing improvement.
Mindset of Abundance
An abundant mindset, on the other hand, is one that believes there is enough for everyone.
It is “a concept in which a person believes there are enough resources and triumphs to share with others,” according to Stephen Covey.
With an abundance attitude, you are in control of your personal, financial, and professional lives.
You feel invigorated and enthusiastic, as if you have greater influence over what happens in your life, and that you are striving towards something bigger than yourself.
Do you have a co-worker or someone else with whom you’ve dealt who energises and inspires others? They most likely think in terms of abundance.
The following are some features of an abundance mindset:
- Challenges, change, and progress excite you.
- Big picture thinking entails mental clarity and the ability to see things from several angles.
- Learners who are eager and non-judgmental, or who think like a beginning.
- “I always have a choice,” says the person with a can-do attitude.
- Gratitude exercises
- Affirmations of abundance should be practiced.
- Rather than thinking defeatist thoughts and using phrases like shortage,
- Having a positive attitude and honestly congratulating others on their achievements
- Instead of being reactive, take a proactive approach to life.
Abundant Money Mindset Helps You Grow Wealth?
When it comes to wealth generation, the reality is that you have to spend in order to attract what you want.
Those that have an abundant mindset will not be concerned about devoting time, money, or other resources to learning how to produce money.
They will take advantage of any chance if it appears to be promising.
Money is money, no matter where it comes from, is a popular phrase in Kenya. This is the mentality that comes with having an abundance mindset.
It makes no difference whether you generate money by picking up trash or working an 8-to-5 job for a Fortune 500 corporation.
The abundance mindset helps you to put off immediate gratification in order to save for the future and be okay with the fact that you don’t have a designer watch or the greatest house in town.
Changing From Scarcity Mentality
The best part is that anyone can change their thinking from scarcity to abundance if they so desire. The first step is to concentrate on what you already own.
This implies you must begin to perceive opportunities rather than limits. Instead of wistfully lamenting your lack of transferable skills, put your solid skills to good use.
You must also begin to unlearn much of what you have become accustomed to when it comes to money. It is necessary to be willing to learn new things and obtain new experiences in the area of money.
As a result, surround yourself with people who have an attitude of abundance.
Start creating win-win circumstances since a scarcity attitude makes one extremely competitive – that is, if one wins, the other loses.
Understand what this means to you both and how to get there, then brainstorm and collaborate. This is something you should accomplish both professionally and personally.
Incorporate appreciation into your daily routine. You may keep a thankfulness diary to help you recognize the good things in your life on a daily basis.
Gratitude will provide you the motivation to achieve your next goals, as well as assist you recognize possibilities that a Scarcity mentality blinds you to.