What is the meaning of A Scarcity mindset? Scarcity Mentality Causes, Definition & Examples

Do you ever feel like there's never enough money, time or resources?

That you're always playing catch-up, and there's never enough to go around?

If so, you may have a scarcity mindset.

It's a mentality of fear and limitation, and it can hold you back from achieving your goals.

Fortunately, there are steps you can take to escape this thinking pattern and achieve greater success.

Keep reading to learn more.

What Is a Scarcity Mindset?

It is the belief that there is not enough of something to go around. This can include time, money, resources, or even love. People with this mindset believe that others are their competition. They may also believe that there are limited opportunities available to them.

This can lead to feelings of envy, insecurity, and anxiety. It can also result in destructive behaviours like hoarding and greed.

Causes of Scarcity Mentality

There are many different causes of scarcity mentality.

One cause is childhood experiences.

The causes of scarcity mentality are complex and multi-faceted. They may be rooted in childhood experiences, past traumas, or cultural messages.

For example, if you grew up in a family where money was tight, you may have developed a scarce worldview about money.

I grew up really poor. I still remember hearing my parents worry about how to pay a bill, and reduce and manage our expenses.

Every penny counted and a disaster was always right around the corner. This programmed me to adopt a pessimistic view of life. There was always a lack of something and something to lose.

Even during my early adulthood, I was obsessed with a lack of money every day, and I made most of my decision-making based on that factor alone.

Lack of financial education

For many of us, no matter how we were raised or what we’ve experienced, a lack of understanding about how money works can cause us to believe there’s a limited amount.

You might believe some people are just born rich, and others aren’t.  You may think that if you’re one of those who aren’t, you’re out of luck.

Some people believe that if they weren’t born into a wealthy family, they are doomed to a life of poverty. This is simply not true. My younger self falls into that category!

When it comes to our finances, this way of thinking is what holds us back from achieving our goals.

One of the most common beliefs is that there is a limited amount of money in the world. That there is only one pie that only a selected few can have a piece of it.

The truth is that anyone can achieve financial success if they are willing to learn and take action.

In fact, most millionaires are actually self-made!

If you don’t understand how money works, it’s easy to believe there isn’t enough.

But with a little bit of knowledge, you can start to change the way you think about money. Once you understand that money is simply a tool we use to exchange value, you will start to see that there is no limit to how much you can earn.

So don’t let a lack of knowledge keep you from reaching your financial goals. Educate yourself on the basics of personal finance, and start taking steps toward financial success!

Just knowing basics such as budgeting, saving and credit card use already goes a long way.

If you'd like to learn more, check out this Personal Finance 101 guide that will cover most of the basics to get you started.

Signs of a Scarcity Mindset

If you have a scarcity mindset, you may feel like you are constantly competing with others for limited resources.

A scarcity mindset can be stressful and leave you feeling unfulfilled, so it is important to be aware of the signs.

Here are 7 signs that suggest you may have a scarcity mindset:

You are always comparing yourself to others.

Do you find yourself constantly comparing your accomplishments to those of others?

If you have a scarcity mindset, you may believe there is only a certain amount of success. As a result, you may feel like you need to put others down to feel better about yourself.

Alternatively, you may find yourself feeling envious of others' successes.

Let their successes be an inspiration rather than competition and everything will change.

You have trouble sharing.

If you have a scarcity mindset, you may have trouble sharing resources with others. For example, if you are working on a project at work, you may be reluctant to share your ideas with others for fear that they will take credit for your work or help others with a task.

Similarly, you may be hesitant to share your possessions with others for fear that they will not give them back.

You feel like a victim.

Do you believe that things happen to you or for you?

You may feel like the world is against you and that you are constantly being put upon by others.

This means that you think there isn't enough for everyone, so you have to compete and fight for what you want.

As a result, you become defensive and protective of what you have, and you're always worried about losing it.

You have trouble trusting others.

If you have a scarcity mindset, then chances are good that you have trouble trusting others.

This is because if you believe that there is only a certain amount of love or success to go around, you will naturally be weary of anyone who seems to be taking too much away from what should be rightfully yours.

As a result, it can be difficult for you to form close relationships with others.

You are living in constant fear

You may be on the lookout for signs that your worst fears are about to come true.

For example, if you have a fear of being fired from your job, then you may be constantly looking for signs that this is about to happen. As a result, you may miss out on opportunities because you are too busy preparing for the worst.

You have trouble enjoying the moment

If you have a scarcity mindset, chances are good that you have trouble enjoying the present moment.

This is because if you believe that there is only a certain amount of happiness to go around, then you will be constantly searching for ways to increase your happiness.  This automatically makes you believe you aren't happy right now.

As a result, you may find yourself chasing after one thing after another and never truly enjoying anything.

You are always worried about the future

If you have a scarcity mindset, you may constantly be worried about the future. As a result, you may be putting off your dreams because you are too busy preparing for the worst.

If you find yourself exhibiting any of these signs, then it is important to take steps to change your mindset.

Don't worry—there are ways that you can change your thinking and combat this way of thinking.

With time and effort, it is possible to develop an abundance mindset and start living a more positive and fulfilling life!

I am still working on it daily, but I have shifted my mindset. If I can do it, so can you!

Overcoming the Scarcity Mentality

Let's take a look at how to overcome the scarcity mentality.

If you're struggling with the scarcity mentality, here are 6 ways to fight it.

Acknowledge that you have been operating from a scarcity mindset.

The first step to overcoming the scarcity mindset is, to be honest, and acknowledge that you have been operating from a place of scarcity. If you want to change your mindset, you have to be willing to change the way you think about yourself and your circumstances.

Challenge your beliefs.

Where did you learn that there is not enough? Why do you believe this? Once you identify the root of your beliefs, you can begin to challenge them.

Flip the script and think of how your beliefs have made you focus on scarcity.

For example, adopting a positive view of money can help you see that there is enough for everyone.

Instead of dwelling on your lack of pie, think about ways for you to grab a piece of the big pie that is the economy.

The latter is a waste of time.

Practice gratitude.

Once you have acknowledged that you have been operating from a place of scarcity, the next step is to be grateful for what you have.

Gratitude is a powerful emotion that can help to shift your mindset from one of scarcity to one of abundance.

When you are grateful for what you have, you acknowledge that there is enough in your life to meet your needs.

Take a moment to list all the things you're grateful for. This could be anything from your health to your family and friends.

By doing this gratitude activity, you will be placed in a state of abundance so quickly.

Whoever you are, there are things to be grateful for.

I do this every morning and when I feel like my life is lacking and I encourage you to do it too. It works!

Take inventory of your resources.

Take inventory of your resources.

Reviewing what you have can help to remind you that you are not as limited as you may think.

You likely have more resources than you realize, including time, money, skills, and talents.

Taking the time to do this will help to ease anxiety and stress, and give you a better sense of control.

Be generous.

When we give without expecting anything, we open ourselves to receiving even more.

It may sound counter-intuitive, but that's exactly what you must do to flip this scarcity script!

To receive, we must give. Whether it be time or money, you will always get back more by being generous with others.

Besides, this also makes you feel good! Altruistic behaviours are associated with greater levels of happiness and health.

Give yourself permission to succeed.

One of the reasons we may feel scarce is that we don't believe we deserve success or abundance.

Start by allowing yourself to succeed in one area of your life, and watch as it begins to spill over into other areas.

Focus on abundance instead of scarcity

Make a conscious effort throughout the day to focus on abundance instead of scarcity. When you think there's not enough, reframe it by thinking about how much there is.

For example, "I'll never find a partner because there are not enough good ones out there," becomes "There are so many amazing potential partners out there for me."

"I cannot find a job; there are not enough good ones," becomes "There are plenty of great jobs out there, and I will find the perfect one for me."

"I don't have enough money to get by," becomes "I have more than enough money to meet my needs and I can make more of it."

It may sound like a small change, but it can make a big difference in how you feel about yourself and your place in the world.

This will take some practice, but eventually, it will become second nature.

This way of thinking keeps your doors to finding solutions open.

On the other hand, if you remain focused on the scarcity of the problem, you are giving it control and are shutting down any chance of finding a solution.

Benefits of a Scarcity Mindset

As I write this article, I can't help but think of ways that the scarcity mindset benefitted me over the years.

You see, it's not all doom and gloom. There are good things that come from having a scarcity mindset too. It depends on where you are in your life.The scarcity mindset also comes with benefits which can help us.

But, like anything in life, too much of it becomes detrimental.

The thing is that this kind of thinking can motivate people to be more productive.

When resources are scarce, people are more likely to work hard to obtain and keep them.

Financially, having a scarcity mindset means that you are more likely to save your money - which is not a bad thing!

I barely spent any money until I had a "real paycheck" after graduating.

My first paycheck was GOLD. I was really careful about how to spend my money. I eventually went on a spending spree after loosening up a little (too much), but that's a story for another time.

When it comes to our careers, a scarcity mindset can often lead us to make choices that are safer and more secure. We may choose a profession that is less risky and offers a more stable income.

While some of my friends majored in liberal arts or continuously hopped between majors, I took the safer path of becoming a nurse where I never had to worry about not having a job and quickly graduated, entered the workforce and made my way into the corporate world in a Fortune 500 company where I am earning more than I ever thought I would. It's not that much but remember that I operated with a scarcity mindset.

Passion isn't always the answer, not for poor people at least, and the scarcity mindset helped me choose a career that would help me support my family as soon as possible.

Ultimately, a scarcity mindset can have both positive and negative effects.

I think that it is truly beneficial when you are poor; however, once you are part of the middle class, it's time to embrace an abundance mindset; otherwise, you are stuck in hoarding mode, and this will rob you of other opportunities life has for you.

What is an Abundance Mentality?

The abundance mindset is the mental belief that there is enough of something to go around. It is the opposite of a scarcity mindset.
The abundance mindset is often seen in people who are generous and giving.

People with an abundance mindset are more likely to be successful because they are not afraid to take risks. They believe that if they fail, they will still have another chance to succeed.

An abundance mindset is a powerful way of thinking that can help you achieve your goals and live a more fulfilling life. It helps you expand your perspective which opens up more opportunities personally and financially.

This is why you must start shifting your mindset towards abundance.

Examples of abundance thought patterns

• You see opportunities rather than obstacles.
• You believe that you are deserving of success, love, and happiness.
• You know there is enough for everyone, so you are generous with your time, energy, and resources.
• You are grateful for what you have and believe that good things will continue to come your way.
• You are open to new ideas and willing to take risks.
• You know that failure is a part of success and you learn from your mistakes.
• You are confident and optimistic about the future.
• You surround yourself with positive, like-minded people.
• You focus on what you want, rather than what you don’t want.
• You take action towards your goals.
• You live in the present moment and enjoy every moment of your life.
• You are happy for the successes of others
  

It was only after reading The 7 Habits of Highly Effective People by Stephen Covey that I learned about this term.

As someone with a scarcity mindset, at the time, understanding the painful tunnel vision I was stuck in created freedom in my life and helped me focus on the important things.

What if everyone could have a piece of this big pie? I thought.

I began to restructure my perspective on life and cut all negative distractions, and the effect was immediate.

I hope that this article helps you conquer this worldview and take the piece of infinite pie that is rightfully yours!