Do you have a Scarcity Mindset? Take this short quiz to find out.
In the simplest terms, the scarcity mindset is the belief that there will never be enough — whether it’s money, food, emotions or something else entirely — and as a result, your actions and thought stem from a place of lack. Instead of believing that you have enough, and there is plenty to go around, you cling to everything you have out of fear of coming up short. This often presents itself in small ways that are often missed by ourselves whether it's under-tipping a server to keep the bill small or denying yourself something because you can't afford it. I am guilty of this.
For me this word was taboo, we never really talked about money when I was growing up. My dad was the sole earner supporting 7 children whilst my step-mum looked after the house so there was a sense of money doesn't grow on trees. As for my mum she owned a pub and was always working... it's from this side that I saw the concept of money but I never really got the chance to sit down and talk to her about it. I just formed the idea that if I worked hard i'd have money. Now I know this isn't the case. There are so many people who work hard all of their life yet have nothing to show for it.
I had a scarcity mindset when it came to money I just didn't realise it. I'd gone to university got a degree but didn't do anything with it. I went in to it without any idea of what I wanted to do career wise and never figured it out, so I ended up working at dead-end jobs.
Fast-forward to when I was 27 and had saved up £10'000 yet I was still reluctant to spend or invest any of the money (this is the scarcity mindset) because I had had the importance of savings drilled in to me and would feel guilty if I treated myself. Then early on in 2017 I went through a traumatic event which meant I had to take a year out from work and I used up 90% of my savings.
At 30 I'm a stay-at-home mum and i'm lucky enough that my partner is able to provide for us. I still have regrets about that money even though I needed it in the end, but I wish I would have educated myself sooner and taken small calculated risks to try and grow that money. Now despite not having a job I actually feel positive about money. I have realised the true abundance of money and I'd like to share with you how I have done that:
Changing Your Mindset.
So how do you overcome the scarcity mentality, especially when it’s been your prevailing way of thinking for most of your life?
Realise that money is everywhere.
Money makes the world go round. Another cliche but it's true. Just look at the effects of Covid-19 a lot of businesses have had to close yet the wealthiest of people have increased there wealth dramatically as of May 2020:
Jeff Bezos (Amazon) wealth increased by approximently $36.2 billion
Mark Zuckerberg (Facebook) wealth increased by approximently $30.1 billion
Elon Musk (Telsa) wealth increased by approximently $14.1 billion
That increase has been made within 11 weeks. A combined $80.4 billion in that short space of time. Doesn't it just 'blow your mind' I like to see those figures because it reminds me that money is constantly flowing. It flows to the people who are being most of use.
If that still hasn't convinced you then here is another impressive money machine:
Forex The foreign exchange market trades around $5 trillion a day. Yes in a single day! Now i'm not saying to go and trade in forex in fact a huge percentage of people who do lose their money. But I wanted you to see that number. Here it is again $5 trillion of money is traded and exchanged daily within this market.
This should now be showing you the true abundance of money. You need to start letting go of any scarcity mindset you have and not be fearful or feel guilty when spending money. This isn't to say go on a spending spree and buy things you don't need. But if you've been wanting something for a long time and have the ability to buy it without putting yourself at risk then go ahead and buy it and be grateful that you have the funds to be able to do that.
Then try to stop spending money on material possessions that only bring instant gratification and instead invest little and often in to yourself. Learn a new skill, take up a new hobby you never know what opportunities might come your way through these experiences.
Use the language of prosperity.
Instead of saying “I can’t afford it,” say “I have other priorities right now.” Shift your thinking, and focus on the abundance that you do have.
Let go of “stuff.”
The scarcity mindset can often manifest as hoarding, as people often hold on to things long past their usefulness for fear they will have to go without. Let go. Donate unused or unwanted items to a worthy cause, and you’ll instantly feel wealthier.
Scarcity thinking often causes overspending, usually because you want to keep up with others. You let envy guide your decisions, causing huge bills. Don’t compare yourself to others; they may be overspending as well.
Acknowledge others’ success. The scarcity mindset leads to jealousy not only in the material sense, but also in feelings of inadequacy or competition when others have success. To improve your own outlook, acknowledge the success of others and applaud their achievements. They may just inspire you to improve your own situation.
Make small steps toward growing your wealth. Open a savings account. Invest a small amount of money in the stock market. Increase your 401(k) contributions. Build your safety net, realizing that you won’t miss a few hundred dollars here or there in the overall scheme of things. When you change your mindset from scarcity to abundance, you become more tolerant of risk and understand that you need to spend money to make money — and that when you focus on abundance, it will come your way.
Have a fantastic day.
I hope to see you again soon.
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