A person’s mentality has a lot to do with how successful they are or will be in many facets in life. When it comes to money this is no different. For those of us who have a negative outlook on money, you may have developed a “scarcity mindset”, and you’ll find yourself always focusing on never having enough. “A person with a scarcity mindset believes there is a finite amount of money to go around. A person with an abundance mindset believes there is plenty for everyone,” as explained by financial therapist Lindsay Bryan-Podvin. You may have experienced some tough financial periods in life that have caused this unfortunate outlook. Those with this mindset likely find themselves living “paycheck-to-paycheck”, as well as being afraid to spend money or spending most of your money the minute it hits your checking account.
Below are some tips on how those with this “scarcity mindset” can begin to shift toward an “abundance mindset”.
- Accept Your Starting Point– Consider how the past may have shaped your current mindset, then release yourself from blame and accept that the only thing you can control now is the present.
- Educate Yourself- Learn about common topics like budgeting, money management, and financial planning. Also, if you’re struggling or lack knowledge in a certain financial area, be specific and research that particular topic.
- Give your Money Direction– Your money needs direction and a plan in order to meet your financial goals. If you don’t already have one, develop a budget or a financial plan.
- Remember You’re not in a Competition- Money is personal not relative. Consider your personal financial goals for yourself, not as they should be in relationship to what you see in others.
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-Written by James Fleet