10 Traits of a Scarcity Mindset
You cannot build wealth with this mentality
1 — Don’t save or invest
Living in the moment is not a valid excuse not to invest, save, and build wealth. When you don’t prioritize building wealth, you function at a scarcity level. To not invest means you don’t believe there is enough to invest. Furthermore, you don’t value your resources. If you value your resources, you put them to work for you via investing.
2 — Don’t prioritize giving
It’s funny. When you have less, it seems contradictory to give to others, but this is the precise time you should start cultivating the habit of giving. The more resources you have, the less enticed you are to give because thoughts and feelings of greed start creeping in. It’s more natural to hold on and keep than let go and give.
Cultivate the habit of giving early, and when you have less so, you will easily maintain the habit of giving when you have more.
3 — Hyperfocus on pricing
Some things will obviously cost more than others, but if you can safely afford something, great. If you need to wait a bit before something fits into your budget without financially hurting yourself, also great.
Don’t get so caught up with the price of something; pricing is all relative. It’s only “expensive” if you label it as expensive. And always consider the question: “Compared to what?” If your mindset is used to a certain price based on your current mindset, it doesn’t mean it’s right, but it could mean it’s limiting you.
4 — Focus on accumulation (materialism)
People who maintain a scarce mindset focus on acquiring more things.
But the more things a person has does not equate to more wealth. More things will not fulfill any purpose and emotional gaps you might be experiencing and trying to mend.
Accumulation (materialism) is an empty road, so I’ve consistently focused on owning fewer things to mitigate my attachments and focus on the things and experiences that contrast with a scarcity mindset.
5 — Complain about money
A negative mindset about finances limits the growth you can experience with your money. People who complain about money frequently experience feelings of never having enough, anxiety, living paycheck to paycheck, and hyper-focusing on accumulation—even if they have more than enough to supply their wants and needs.
To eliminate a scarcity mindset, stop complaining about money and think and speak positively about it.
6— Live above or right at their means
You cannot build wealth if you live above or right at your means. To build wealth requires an excess of resources. How do you maintain an excess of resources? Live below your means; spend less than you earn. A good steward does not frivolously manage their money. They keep track of their finances and ensure they are not falling prey to lifestyle creep. People with a scarcity mindset often don’t live below their means.
7 — Waste their resources on liabilities
Liabilities are classified as anything that doesn’t produce income or add wealth to your pockets. Most prioritize obtaining liabilities instead of assets. Examples include cars, tech gadgets (phones, tablets, smartwatches, and computers), clothing, and a primary residence that doesn’t earn money.
What are assets? Assets produce income and don’t detract from your wealth. Examples include stocks, REITs, private equity, real estate, intellectual property, businesses, etc.
8 — Are uncomfortable with the topic of money
Like sex, money is a taboo subject. People get uncomfortable about money. They don’t want to discuss it, go into its details, or get help to improve their financial outcomes because of pride.
People with scarcity mindsets are frequently uncomfortable with the topic of money because they don’t have any or have enough. The more comfortable you are with the topic of money, the more likely you are to increase your success by having more of it.
9 — Believe there are not enough resources to go around
If one person has a lot, this does not take away the opportunity for you to have a lot as well. There are more than enough resources to go around for everyone. If you don’t believe this, you will never have enough.
Around the world, the number of millionaires is on the rise — and the boom is only expected to continue (money.com).
The number of millionaires is consistently increasing, as is the number of billionaires. There are plenty of resources for you and everyone else.
10 — Don’t believe they can significantly increase their income
The only barrier between your income level today and the income level you could be at is you. There are no limits to a person’s income outside of the ones they set for themselves and believe to be true for them.
There are infinite ways to increase your income if you have a strong desire and purpose.
Disclaimer
This article is intended for informational purposes only, and should not be considered financial, investment, business, tax, or legal advice. You should consult a relevant professional before making any major decisions.
Thank you for reading | destinyh.com