Money Mindset Hacks - Scarcity vs Abundance
With inflation hitting 7.3% and a recent study showing one in 4 New Zealanders struggle to make ends meet at least once a month, it’s no secret New Zealand is in the midst of a cost of living crisis.
When you think about your financial situation, does it give you a feeling of contentment, gratitude and balance or concerned that you have enough to make ends meet?
Don’t get me wrong, the numbers in your bank account definitely do matter. However your ‘Money Mindset’ and how you think about money will determine the role it plays in your life.
Scarcity Vs Abundance
Our Money Mindset and financial habits – good and bad – have been deeply ingrained from childhood. If you were raised in a household of scarcity and your parents said things like ‘Money doesn’t grow on trees’ or ‘We can’t afford that’ you may take that mentality through to adulthood.
However if you were raised in an environment where you heard things such as ‘We’re so lucky to have everything we need’, you may have more of an abundant mentality.
An abundant mindset is to believe there is enough to go around where as a scarcity mindset gives feelings of lack and stops us from achieving our goals.
Scarcity beliefs around money sound something like this:
I’m not good with money
I’m not_____(Smart/talented/privileged etc) enough
People with money are greedy
Money can’t buy happiness
If you’re sat there thinking ‘It’s not my mindset, I just don’t have any money’ That’s exactly what a scarcity mindset would say. Flipping it in to an abundant mindset may look something like this
Abundant beliefs around money
I can take charge of my finances
I enjoy learning about money
I can use my money to help others
Money is neutral (not good or bad. Money doesn’t make choices)
You appreciate what you have and have the confidence to make AND receive money.
6 Ways you can change your money mindset
How you think about money has been instilled from early experiences growing up and the habits of people around you. If you’re surrounded by people with a broke mentality, it’s easy for their habits to rub off on you.
Although your environment matters, it’s not really about them it’s about your mindset and that starts and ends with you.
1. Practice Gratitude
Be Grateful for everything you do have. It might not be as much as you want but it’s what you have right now. It’s estimated 1 billion people live in poverty on less than US$2.50 per day according to FINCA International. You’re not wrong for wanting more, but if you aren’t part of that population, we’ve got to get in to the habit of appreciating what we do have. Clothes on our back, clean water, a roof over our head and access to medical treatment. Spending more time appreciating what you have instead of focusing on what you don’t, will make you feel more abundant in no time.
2. Glam up your life
Make the extra effort to add special touches to your everyday life. You can live a life of luxury without the added expense by surrounding yourself with people you love. Add candles, music and dim the lights to a meal you’ve made at home, and it will immediately rival any fine dining restaurant. Great dressed up and make it a night to remember. Take time to appreciate the small moments rather than worrying about spending a lot of money.
3. Stop Comparing
This can be applied to all aspects of life. Comparisons are never accurate as no one starts at the same time, with the same resources or follows the same path. Comparing yourself to others will only bog you down into a feeling of more scarcity. You may start to focus on your flaws instead of how far you’ve come which can set you back and make your goals seem unreachable.
4. Educate yourself
A lot of people are scared of money. Develop your basic financial knowledge so you know how to budget, manage your finances, or set up an emergency fund. Check in with your finances every single week and don’t stick your head in the sand. Having a basic understanding sets you up for success regardless as to how much you are spending.
5. Decide to be successful
Now I know that just by making that decision today, money isn’t going to appear from nowhere. However, making a very simple decision will have a profound effect. Decide to be wealthy and commit to the process. If you don’t even believe it, you probably won’t be motivated to achieve it.
6. Use positive affirmations
If you’re having trouble maintain a positive attitude towards money, have a go at repeating positive affirmations each day. These can help you achieve your financial goals by changing your mindset around money. You are more likely to take actions that lead to financial success when you start to think positively about money and wealth. Try these:
Money Flows freely to me
I naturally attract good fortune
I am enough
I am worthy of having money
I will conquer my financial goals
I am wealthy beyond money
Following a few simple steps can change your Money Mindset from Scarcity to Abundance and transform your life in a way you know makes cents!
Remember, you don’t have to prove anything to anyone. Focus on the life that you want and getting those powerful feelings behind it.