I LOVE to talk about money. I love that it’s not just about numbers and systems and financial investment options (blah, blah, etc.), but it’s also about our FEELINGS too! Our feelings, or what we call our money mindset, are the foundation for all things money. Your mindset around money either holds you back or propels you forward. There’s no in between.
I heard someone say once that you don’t get out of your childhood without deeply ingrained perspectives around three topics: love, health and MONEY. If any of those perspectives are unhealthy, it can take SO MUCH intentional work to dismantle them. Stick with me here, friends.
Your money mindset
How do you FEEL about money? Most of those feelings are learned. We didn’t hop out of the womb feeling any particular way about money. Feelings like shame and pride and hopelessness and fear are tangled up around this topic. And a lot of those emotions are shaped by our early influences and early experiences with money.
Our job now is to reframe and relearn some of the basics. AND GUESS WHAT?! You’re doing it. Just by showing up here, you’re putting in the work. Let’s build that foundation and JUST GET STARTED.
One thing that is already ingrained in you (yes, you!) from your early experiences is the type of money mindset you have. There are two very distinct mindsets people fit into, according to most financial gurus. Do you have an ABUNDANCE mindset or a SCARCITY mindset when you think about money?
Scarcity Mindset
Stephen Covey defined both scarcity and abundance mindsets in his book, The 7 Habits of Highly Effective People. Here’s what he said: People with a scarcity mindset “see life as having only so much, as though there were only one pie out there. And if someone else were to get a big piece of the pie, it would mean less for everybody else.”
Well, that’s depressing. People with a scarcity mindset believe there just isn’t enough to go around. That extends to things like promotions, raises, credit, profit. Anytime they see someone being promoted, they can’t be authentically happy for that person, because they believe that promotion is now not available to them.
People with a scarcity mindset worry their money will run out. Instead of seeing money as infinite, they see it as limited. Rather than looking for hope and possibility in their lives, people with this mindset tend to clamp down and live for today only. It’s a mindset rooted in fear and anxiety, focused on the here and now, rather than planning for the future.
Scarcity in itself is not always a bad thing. Scarcity of resources prompts us to get creative with ways to save money or stop wasting resources. Not having enough time makes us prioritize the things we value most in our lives. And, in our work lives, time scarcity means our time can be valued at a higher rate.
But having a mindset centered on scarcity creates limiting beliefs that stifle your potential.
Abundance Mindset
Let’s go back to Stephen Covey’s definitions. He says an abundance mentality “flows out of a deep inner sense of personal worth and security. It is the paradigm that there is plenty out there and enough to spare for everybody. It results in sharing of prestige, of recognition, of profits, of decision making and opens possibilities, options, alternatives and creativity.”
Sounds pretty nice, huh? As an antithesis to scarcity, abundance is positive and hopeful. It’s a belief that there’s enough to go around. If a coworker receives a promotion, people with an abundance mentality can be genuinely happy for them, because they know their own possibilities are not limited by someone’s success. What you have now is ENOUGH – whether that’s money, resources or ability.
Money becomes infinite through the abundance mentality. We are not locked into our same jobs or our same path. We can try new things, and explore new careers or side hustles. There will always be ways to make money. This means people with an abundance mindset can make decisions based on value. An item may cost more now, but it will last longer or provide more utility or convenience over its lifespan.
People with an abundance mindset understand that time is on their side. Focusing on the here and now limits our savings and earning potential down the road. Rather than pulling back on investments during a market downtown, they see the long-term opportunity of putting in more money for a greater return.
Thoughts Become Actions
The mindset we have dictates how we will behave with our money because our thoughts become actions. Our mindset essentially sets our potential threshold: if we see money as finite, we’ll act as though it’s limited. We’ll hold tight to our money, avoid risks and believe our lives will never improve. But alternatively, if we believe in abundance, we stop living in fear and trying to keep up with the Jones’. Instead, we embrace positivity and possibility.
After diving into these two conflicting mindsets, it’s pretty clear one of these money mindsets will serve our future success more than the other. How do we begin to make that money mindset switch from Scarcity to Abundance?
Ways to Build a Healthy Money Mindset
Gratitude
Gratitude as a daily habit can be transformative. It’s a daily reminder of how MUCH you have, which aligns so closely with the abundance mindset. Write down a few things each day that bring you joy or have you feeling thankful. It can be an experience, a person, a pet, an environment, a skill, or any number of things. No matter how long or short your list is each day, a journal filled with things that bring you happiness is such a powerful reminder of abundance. There’s a reason a gratitude journal is on every self care list ever!
Here are a few of my Thankful Thursday posts where I share what I’m most thankful for:
Another addition you can make to this daily journaling practice is to jot down recent accomplishments on a regular basis. You ARE making progress, and jotting down reminders along the journey can increase your confidence you’re headed in the right direction.
Watch your social media intake
Comparison TRULY is the thief of joy. Spend a few minutes looking at influencer pages on Instagram and it’s easy to spiral down a hole of “I’ll never be as clever/pretty/smart/outgoing/etc. as them”. Watching other people live (what looks like) their “perfect” lives is a great way to stir up some major feelings of jealousy.
Social media also makes it SO EASY to succumb to advertising and influencer lists of “must haves”. From pretty day planners to the “perfect summer dress with pockets”, social media is designed to make you think you HAVE TO HAVE whatever they’re selling. So an added benefit of minimizing social media intake is avoiding unnecessary purchases. Never a terrible idea while you’re working toward your financial goals.
Instead of scrolling (or, a new term I learned, “doom scrolling”), intentionally spend time with your IRL friends and family. Invest in THOSE connections because they will pay dividends.
Do something nice for someone else
Any time I’m feeling down, I know the best way to pull myself out of a funk is to help someone else. Drop off some surprise flowers on a friend’s porch, or write a letter to a family member you know needs some sunshine. Volunteer to walk a shelter pup, or text a funny meme to your pals to brighten their day.
There’s NO better way to remind yourself of life’s abundance than by contributing something good to the world. If you need some ideas, the Random Acts of Kindness Foundation has a whole website full of inspirational ideas to equip you on your kindness journey.
If you need further convincing to do something nice for someone, remember this wisdom:
“People will forget what you said. People will forget what you did. But people will never forget how you made them feel.”
– Maya Angelou
Surround yourself with positive people
Think about your squad right now. How many of the people you spend time with would you categorize as positive or happy? Typically, “like attracts like”, meaning you’re naturally attracted to friendships with people similar to you. So if your squad isn’t happy or positive on average, that’s ok! You don’t have to abandon anyone. Just supplement your friend roster with one or two people who happen to skew to the more positive side of the spectrum.
We all know the quote, “you’re the average of the 5 people you spend the most time with”. An abundance mentality is easier to implement when you are exposed to people who also have an abundance mentality.
Create a vision board
OK, I know, it’s a little hokey. But I’ve benefited from having a vision board and I’m betting you would too. At the very least, we’re always looking for home-based entertainment during COVIDTIMES and this will give you something to do instead of Netflix scrolling for an evening or so.
Even if it’s not a board, sitting and drafting out a vision of what you want your life to look like can be inspiring and motivating. Think about how you want to feel, what you want your life to look like, who will be in the future vision with you. Think in terms of possibility and abundance! Don’t limit yourself in any way. Skills can be learned, money can be earned and your future is bright, my friend!
Chase all the waterfalls
Alright, this may or may not have anything to do with waterfalls. What I mean here is, pursue adventure in your life. Shake things up a bit and try something new. Whether it’s a heart-pounding trek to a waterfall or just a local cooking class you try out. Getting outside of ourselves and our comfort zone is critical to personal growth.
Adventures and new experiences can also serve as a reminder of ALL that is available to us on this Earth. We aren’t limited to our present circumstances only. Sometimes a little adventure is all it takes to be reminded there is hope and possibility in this world.
In summary
If you’re like me, you come to blogs like this to be inspired and to learn new things. Possibly to improve yourself or get a different perspective. Through the “Start Here” series, we’re going to tackle some concrete, simple steps so you can begin to realize some of the stability and possibility you crave. Stay tuned for this series over the next month for some concrete, actionable ideas for how to take control of your finances.
In the meantime, what actions are you going to take in the next week to begin to craft your abundance mentality?