Your relationship with money can affect the way you spend, invest and save. However, many people only discover their relationship with money late in life.
A scarcity mindset—the fear of not having enough money—can have negative consequences. This state of mind can be attributed to various factors. For example, growing up in a low-income household, the influence of social and cultural pressures, or past financial difficulties.
However, the relationship to money is not necessarily a reflection of reality, but rather a mentality that can be changed. The first step in examining your relationship with money is often getting to know the reality of your situation.
Understanding the difference between a scarcity mindset and an abundance mindset—and knowing practical ways to help change your mindset—can help you align your perceptions, financial goals, and values.
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Scarcity mindset versus abundance mindset
AND lack of thinking it is characterized by the belief that one’s resources are limited and insufficient. People who have a deficiency mind tend to focus on what they lack rather than what they have, which often leads to anxiety, stress and a constant feeling of not having enough. When it comes to money, this mindset can lead someone to work too much, deny themselves what they need, or feel like they can’t save for their future.
On the other hand, people who have a abundance thinking they believe they have many resources and opportunities available to them, and often emphasize possibilities, growth, and gratitude. This mindset can build resilience, the ability to work collaboratively, and the willingness to make informed decisions and calculated risks, especially when it comes to finances.
Many people have traits of both states of mind. However, moving from a deep-rooted scarcity mindset to an abundance mindset requires changing your mindset and adopting a more positive and open perspective. This can greatly affect your financial well-being.
Tips for Overcoming Lack of Mind
Track your finances: As with most financial matters, tracking your finances and creating a budget that takes into account your income, expenses and savings goals is a great way to get a realistic picture of your situation.
Be thankful for what you have :According to the experts, it’s a good idea to take a moment every day to think about what you already have: a supportive family, good health, a stable job or, for example, stimulating projects. Being grateful for the value of these things can help you change your mindset and see “abundance rather than scarcity.”
Determine root causes :To determine the root causes of a lack of thinking, you need to take inventory of the experiences that led you to that thinking. These could be factors related to your childhood and upbringing, social and cultural influences, perceived limitations in yourself and your abilities, or a negative view of your financial situation. Uncovering the root causes of this mindset is a gradual process that requires patience, and addressing some of these root causes requires self-kindness.
Enrich your knowledge: Knowledge is power. Take the time to learn about personal finance, investing and managing your money.
Of course, life is full of twists and turns that can create moments where we fall back into a scarcity mindset. Achieving a sustainable abundance mindset is not possible for everyone; However, it is important to move towards this ideal. This is not to erase moments of doubt or fear, but rather to recognize them as opportunities for growth and transformation.
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Maxine is a Canadian journalist and podcast producer on human rights and global development. She has contributed to Al Jazeera, UN Habitat and the SOAS blog.
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