Divorce can be emotionally and financially overwhelming. That's why I'm teaming up with Sunny Wishart, president and founder of A la Carte Financial and a certified financial planner. We will show you how to understand all things money without feeling ashamed, overwhelmed, or embarrassed. You will learn. Learn more. Ask questions. No question is a dumb question.
We're going to discuss the mindset of scarcity versus the mindset of enough. We will discuss seven areas in your life that may be why you're living in scarcity and three areas in your life where you can begin to create an abundance mindset.
What is a mindset of scarcity versus a mindset of abundance? And how does this affect a person who is striving for financial freedom?
The scarcity and abundance concept is something we're all still unpacking and figuring out. We all know what the words mean, but it's a whole other can of worms to figure out what the words mean to each of us and to figure out if we have a scarcity mindset. You might think you don't. You have to listen to those little voices and the way you speak and how you come across. Something I was thinking about is that we know what scarcity means. We know what the word is. But do we have any idea what to do about it?
Going from a scarcity mindset to an abundance mindset is not as easy as flipping a switch. It's a constant practice. You have to reframe it to shift your mind. Every minute of every day, every thought has to be changed. When I started looking at what scarcity means, it's this deep-rooted, ingrained belief that has been in us since we can remember. We may not be able to recognize it, but it could be something like the way your parents talked about money and all those little things that you've taken and you've created a belief system around money and what you've heard. We need to unlearn the scarcity mindset and relearn the abundance mindset.
The six areas that we've come up with that put us in a scarcity mindset are:
A Limited Perspective:
If you're in a scarcity mindset, you often perceive resources as scarce, leading to a sense of a lack or insufficiency. This results in feelings of anxiety, fear, and a constant need to acquire more. So the first area of living in scarcity is a limited perspective. And this can lead to poor decision-making. It contributes to our stress and anxiety and our health. Fear and anxiety are blocking us from the abundance mindset that will free us and allow us to be financially independent. For this transformation to happen, we need to start slowly. Start with baby steps, and start noticing the shift. It's the little wins that make you feel confident and give you the courage to move to the next step and it kind of starts to roll.
Comparison and Competition:
We often feel the need to outperform or accumulate more than people around us. Social media has really made us constantly compare ourselves with what we see about others' lives online. This comparison and competition really keep us in the scarcity mindset. For example, we see holiday ads for home decor that costs thousands of dollars. We probably see someone in our network changing their home decor every season and it makes us feel like spending that money as well. Instead of giving in to this temporary moment of satisfaction, it is important to understand your cash flow and decide your priorities. Or if taking a trip every year is important to you, that's great. Include it in your financial planning right from the start. It's not going to be something you go and stick on a credit card and hope it works out. It’s something that's going to be included because it's how you want to live your lifestyle. But if you want to do all the things, like have a super decorated bedroom, take the trip and like all the things, we have to prioritize them.
Scarcity Mindset and its Impact on Our Well-Being:
When you have a scarcity mindset, you're stressed, you're discontent. It can contribute to chronic health issues and you find it challenging to appreciate what you have because you're always yearning for more. The impact of a scarcity mindset can be devastating to our physical health and well-being and harmful because you're not appreciating what you have in your life right now. Always understand your situation, gain clarity around what is happening, and see the positive side of things.
The Impact of a Scarcity Mindset on Our Financial Situation:
When you're in a scarcity mindset, you're often, over-consuming, overspending, in an attempt to fill a perceived void. And this can lead to financial challenges. It is important to get a reality check and go down to the nitty-gritty of your day to day spending habits. People will have that one place where all the money is going that makes them feel good. These expenses need to be included in their lifestyles so that they don’t pile up and come as a surprise later. Feeling bad about these types of spending is what keeps the scarcity mindset going because you feel like you’re overdoing something and need to cut back.
Looking at the Relationships you have with Important People in Your Life:
Are they strained? A scarcity mindset can create strain on these relationships because you have feelings of jealousy, rivalry, and an inability to celebrate other people's successes.
Your Impact on Decision-Making:
A scarcity mindset promotes short-term thinking as opposed to long-term planning. This can affect decision-making in your financial world. If you have a bigger picture painted, it's so much easier to keep focused on that big picture and to keep an eye on the prize. But it's so hard to paint a big picture because of all the clutter. A great way to start would be with short-, medium-, and long-term goals. Plan what you're going to do for the next 1 to 3 years, and 3 to 5 years and so on. You divide up the bigger picture into smaller achievable goals.
There are three ways you can create financial abundance in your life:
Gratitude and Contentment:
It's about recognizing and appreciating what you have right now.
Embracing Enough:
The concept of having enough involves finding contentment and satisfaction with your current situation. It's a mindset that focuses on the sufficiency of resources and embracing the present moment.
Cultivating Abundance:
Focusing on possibilities, creating a plan, setting goals, recognizing the resources that you have can be expanded, and figuring out how to do that.
If you are struggling with getting the clarity you need to paint the bigger picture and work towards it, I've created a free mini-course and I think it might be helpful for you.
So remember, you are worthy, you are loved, and you belong.
Wendy
xoxo
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