Mindset plays a big role when it comes to managing finances. How you think about your financial condition plays a significant role in leading you to take care of your money. Believe it or not, your mindset can determine how sooner you will achieve your financial goals.
There are generally two mindsets – scarcity mindset and an abundance mindset. You can think that having a scarcity mindset can encourage you to save more and more, and hence it is far better than the other, but it leads to various harmful effects. In fact, it can throw you into a vicious circle of debt.
A scarcity mindset can be a pessimist approach that always focuses on the half-empty glass.
- You emphasize not having enough money to make ends meet.
- You feel that you do not have enough money and you will never have enough money.
As a result, you will be dissuaded to invest your money and achieve long-term financial goals. This will fill you with unhappiness and disappointment.
An abundance mindset is an approach to looking at the half-full glass.
- It makes you feel that you have enough money.
- You feel financial liberal and more encouraged to make most of your money.
When you have a scarcity mindset constantly, you will never be able to achieve your financial goals. You will always be depressed and not feel a high level of self-worth.
A scarcity mindset can stop you from achieving financial independence. This blog discusses how you switch your mindset from negative to positive when it comes to money, but before you get to know how to overcome it, you should know how it looks like.
Financial worries always chase you
Money is crucial, but if you cannot deal with financial shortcomings, you need to identify the flaws to improve your situation. However, sometimes it is just in your thoughts.
Since you want to buy a luxurious car like your friend or neighbor and do not have enough money, it does not mean that you are impecunious.
You can buy another relatively cheaper car model. Your negative thinking will not only take a toll on your health but on your finances too.
If you feel that you need more and more money to keep up with your acquaintances, it can definitely be a sign of a scarcity mindset.
You do not feel good for others
When you see your friends achieve something, you should be happy. If you find it hard to see them achieved something in their life like a good job, hike in their pay, it means you are envious of them.
This is one of the significant signs that you have a scarcity mindset. This happens because you start comparing your situation with the and you also want what they have got.
You get easily frustrated
Whether you set short term or long-term goals, it is crucial to be patient. There are always ups and downs. If you easily lose your rag when you cannot quickly achieve your goals, it could be a sign of a scarcity mindset.
Similarly, when you overindulge yourself in goals – for instance, you start saving more and more – you do not spend on essential things too. This keeps you from enjoying your life, and as a result, you are constantly hacked off.
Ways to overcome the scarcity mindset
If you have any of the symptoms mentioned above, you have a scarcity mindset. Here is how you can do it.
· Think that the glass is half full
It is effortless to think that you do not have enough money to live off. No matter how much you earn, your endless desire of having more and more will never let you be satisfied.
Instead of focusing on what you do not have, you should compare your current situation with where you were in the past.
It will evoke a sense of motivation in you. You will feel that you kept growing. Celebrate little achievements because that will help you prevent from dwelling on what you do not have.
·Learn to accept the harsh realities of life
People with a scarcity mindset often struggle to be open about negatives outcomes.
For instance, if you have invested your money somewhere and have lost it or invested in the stock market but it is working contrary to your expectations, you can start worrying about your money and conclude that you should not have invested your money.
You always fail in everything you try to do. A rule of thumb says that you should accept that you cannot win all the time. Even though you have carefully planned your money, you can lose it. Instead of thinking about that, you should move ahead.
·Get a lesson from your mistakes
The best way to build an abundance mindset is to learn from your past mistakes. For instance, if you have suffered the consequences of taking out a loan for everyday needs, you should never make that mistake.
Make sure that you build an emergency cushion so you do not need to borrow money in case of an emergency. However, it does not mean that you can take out a loan with loan agencies in Ireland. Having an emergency cushion can keep you from borrowing money for every other reason.
The final word
You cannot get rid of the scarcity mindset overnight. First off, you will have to identify if you have a negative mindset about your financial condition and if yes, you need to look at your money with a more open outlook.
Stop comparing yourself with others because your financial condition is different from theirs. Try to learn from your previous mistakes. Try to be patient when it comes to achieving your financial goals.
Having an abundance mindset can actually help you gain financial liberty sooner rather than later.
Description: A scarcity mindset can stop you from achieving your goals. This blog tells how you can build an abundance mindset.