There is a lot of emphasis on the mechanics of money management by most professionals. No doubt about it, the mechanics are critical. But what about this? Using a debit card or a credit card is second nature to most of us. This isn’t a difficult task at all. How to master the psychology of earning, spending, and investing is a challenge. Let’s call it Millionaire Mindset.
When you’re in your forties or fifties like me. With y ears of habitual behavior to govern your actions and decisions, even if you realize that your choices are not always in the best interest of yourself or your loved ones. Changing our mental blueprints, such as our money blueprints, is difficult.
There is no need to be alarmed. I haven’t become a squanderer or anything. There are pieces of my past that continue to influence me, and I’ve been thinking about this a lot recently. For example, I’m constantly fighting a scarcity mentality. It has been difficult for me to cultivate a positive attitude of abundance.
Scarcity and abundance have been co-opted by “Law of Attraction” people who use them to promote magical thinking. Consequently, I’ve been reluctant to discuss them. Using these concepts in a Post Modern manner irritates me to no end. I’m interested in looking at them from a psychological standpoint.
You have a scarcity mindset if you assume that everything is limited. The clock is ticking. Expenses are capped. Love is finite. You start to worry about the future because of this. You’re more anxious about what could go wrong than what could go well, whether you’re aware of it or not. You make decisions based on your fears. You’re worried about missing out on something. You worry that you won’t have enough to eat. You’re prone to “all or nothing” conduct, and you’re unable to control your impulses.
An abundant mindset implies that there is plenty for everyone. There’s no shortage of money, power, or happiness. You have high hopes for the future. Even if there are hiccups on the road, you remain optimistic. Rather than making decisions solely on a particular moment in time, you look at the big picture. You have no problem juggling the demands of now with the demands of tomorrow.
When I was younger, I suffered from a variety of behavioral issues, including excessive spending, overeating, video game addiction, alcohol abuse, and near-hoarding behavior. I’m an obsessive-compulsive hoarder of things.
A scarcity mentality is at the root of all of this: the collecting, the addictions, the lack of self-control. Even though it wasn’t until a few years back that I was able to see the source.
Delaying pleasure is difficult for me because my family was poor when I was growing up. If I want something and it’s available, I’ll go out and get it as soon as possible, even if life is good. I have a nagging feeling that this is the only chance I’ll ever get.
Financial freedom, in many ways, is a direct result of abandoning the scarcity attitude and adopting an abundance mindset. Having a positive outlook on the future is essential to financial well-being.
Let’s take a look at some ways in which the scarcity attitude manifests itself, and how to embrace abundance in its place instead.
Fear of the future is a symptom of the scarcity mindset for some people. It’s like if they’ve grown up through the Great Depression. Even when they have a lot, they’re unable to appreciate and enjoy what they currently have because they’re so concerned about how horrible things could get.
Some associates of mine, have this problem. Despite having millions in the bank, I’ve come across these associates who are so afraid of the future inflation, peak oil, etc. That they won’t spend the money to fix their homes or take care of their health. If you die or your house falls down around you, what good is all that money?
Because they’re self-inflicting so much damage on themselves, these people don’t injure anyone else. However, they never get to enjoy the present moment because they are always thinking about the future.
There is never enough for those who have a scarcity mentality. They will not be able to sleep at night, no matter how much money they have.
Some people, like me, have a hard time putting up with the inconvenience of waiting for what they want. We’re a family of “shopaholics” who can’t stop buying things. We’re so pessimistic about the future because we’re stuck in the scarcity mindset. We need everything immediately, and we need everything now.
Having a fear of losing out was the driving force behind my financial strategy. When I went from a spendthrift to a money manager, I learnt to postpone future purchases. To get what I wanted, I had to learn to be patient.
People with a scarcity mentality, believe they will never have enough. Rather, the absence shows up in a different form. We don’t need more money; rather, we require more stuff. We purchase and buy and buy and never get tired of it. There is no amount of material wealth that will bring us happiness..
The modern world can put a lot of strain on us. We’re pressed for time, as if we’ll never get to do all we want. We experience a deficiency, a scarcity, of time and space. As a result, we tend to withdraw. We watch television. We spend a lot of time playing video games. Relaxation time. However, studies have shown that “spending time” in this manner is a waste of time. We feel cheated when we take time for ourselves.
As an alternative, we feel rejuvenated, when we devote our time to others, such as assisting a friend or volunteering in the community. In addition, our days feel busier than they used to. We have a higher sense of self-worth and accomplishment. That, is abundance in action.
The abundant mindset is based on the belief that there is plenty of everything in the world: money, love, and time. There’s enough food for everyone, even you. Right now and tomorrow, there’s more than enough. So get out there and make the most out of it!