Do you find you struggle to make ends meet, and never seem to have enough money? Having a scarcity mindset can have a detrimental effect on your day-to-day life and more importantly, your financial future.
But what exactly is a scarcity mindset, and how can you switch that and adopt an abundance mentality instead?
Read on to discover the difference between scarcity and abundance mindsets, and how to shift if you need to.
Scarcity Mindset vs. Abundance Mindset
Having a scarcity mindset pretty much speaks for itself; you believe everything is in short supply. There’s a niggling fear that by the time it comes to your turn to receive, you’ll draw the short straw.
Like the kid at the party who ended up with the thinnest slice of birthday cake as all the thick slabs had been snatched already. Unfortunately, this fear of scarcity can filter into your finances, too.
Conversely, having an abundance mindset means you believe everything is in abundance. Money. Food. Clothes. Luxuries. That there is an infinite amount of resources out there, enabling you to live your life exactly as you want to.
But if you’re already suffering from a scarcity mindset, the mere prospect of turning your life around and switching to an abundance mindset just isn’t possible, is it?
What is Scarcity Mindset?
As Stephen R. Covey discusses in his book, “The 7 Habits of Highly Effective People”, a person with a scarcity mindset/mentality “…see[s] life as having only so much, as though there were only one pie out there. And if someone were to get a big piece of the pie, it would mean less for everybody else. The Scarcity Mentality is the zero-sum paradigm of life.’
To make things worse, jealousy sets in when someone close to you, or someone in your circle, appears to be doing better than you. Whether that be a pay-rise, a new job, or obvious financial success. (Or more cake).
Everything becomes a competition.
Your self-worth plummets as you compare your lack of all good things to their success.
Scarcity Mindset and Money
The problem is, a scarcity mindset can adversely affect your financial wellbeing.
You might become fiercely competitive in your desire to have what they have and risk getting into debt in the process. Or, you’ll give up and wonder what’s the point, doomed to remain poor and unlucky for eternity.
With a scarcity mentality, you believe your income simply can’t stretch to cover everything. In your world, there’s never enough money to pay all the bills, put food on the table, AND buy yourself nice things.
There’s that nagging worry that if you pay your mammoth credit card bill or buy the tyres you desperately need for your car, you’ll be left lacking in other areas.
Overcoming a Scarcity Mindset
Your scarcity mindset comes from the limiting beliefs you tell yourself daily. Beliefs you’ve grown up with, like ‘there’s never enough to go around,’ when dining at nan’s for dinner because she’s used to cooking with rations from wartimes.
Or, believing that money is always tight when your dad tells you ‘I can’t afford it,’ in response to you asking for a small gift. Or, remembering the fact you had holes in your socks when you were a kid because your parents couldn’t afford to buy you new clothes.
Once you begin to challenge your limiting beliefs and change them into empowering beliefs, you’ll begin to understand that money and abundance is available to everyone. It’s simply a case of changing your thinking, and that’s where daily affirmations come in.
- ‘I can make money!’
- ‘I CAN afford it.’ (what this means is, you’ll find a way)
- I deserve and accept money and success.’
- Money and success flow easily to me.’
Your thoughts become your words, and your words become your actions. Your actions become your life. So, start believing that you are worthy of financial abundance and do your research into how money works.
Then, feel that abundance and watch as it grows.
Because ultimately, you have the power to rewrite your financial future.
What is an Abundance Mindset?
So, could you imagine how it would feel to spend money without fear of it running out?
Not because you spend recklessly with money you don’t have. (That would be foolish and is what causes debt problems.) But because you live with conviction and certainty that there is enough money to go around for everyone.
That’s what life is like when you have an abundance mindset or mentality.
There’s no fear of anything running out, because you accept that there will always be enough for everybody. If the money runs out, you can always make more.
You can ask for a pay-rise. Get a new job. Start a new business venture one of 67 side hustles.
It’s believing that anything is possible, and it’s yours for the taking. This way of thinking drives the action you need to make it happen. And that’s the key.
There are infinite possibilities when it comes to abundance, and it all boils down to belief, your actions, and changing your perception. If you’ve ever heard the phrase “what you think, you become,” you’ll know how true this is.
Simply put, your thoughts control your actions, and your actions become your life.
Once you understand this concept, you can begin to create financial abundance.
How to Adopt an Abundance Mindset
As Rob Moore, entrepreneur and author of the book “Money: Know More, Make More, Give More,” says, it’s essential to understand that money is always in a state of flow. The only reason the rich get richer and the poor get poorer is because ‘money moves from those who value it least … to those who value it most by saving, investing [and] compounding…’
To change your views and mindset around money, you need to change your self-limiting beliefs.
You need to start believing that you’re worthy and understanding how money works.
You also need to learn how to get money to work for you. Develop a money-making mentality.
I’ve covered multiple ways we can all use to make money from home in the UK. However, it’s not just about getting started. Some methods cost money to start or keep going but will make you more money in doing so.
Those afraid to payout even relatively small sums, just won’t benefit at all.
“The only thing that’s keeping you from getting what you want is the story you keep telling yourself.” ~ Tony Robbins
The problem is, if you spent your childhood in poverty, you’ll have inherited beliefs from your parents that money is scarce. This kind of thinking can set the precedence for your life story.
It translates into a belief that you’re unworthy. That you’re destined to live a life of poverty yourself. But you’re not.
Every single one of us is worthy of money and abundance.
 Covey, Stephen R.. The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change (p. 230). RosettaBooks. Kindle Edition.
Hopefully, this post has helped you identify which mindset you fall into.
Do you recognise how your mindset can help or hinder you?
Are you going to attempt to make a shift?
Let me know your thoughts, I’d love to hear.