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There are two basic mindsets: an abundance mindset and a scarcity mindset. Which variant you choose determines your chances of success – especially on your way to financial independence.
While those with a mindset of abundance envision limitless possibilities, those with a mindset of scarcity think of the world in terms of limited possibilities. It is obvious what mindset can help you get ahead in life, business, and money.
This article will teach you how to adopt a mindset of abundance and find the skills you need to avoid falling into the trap of negative thinking.
But first, let’s break down some of the key differences between these two mindsets.
What is an abundance mindset?
An abundance mindset is a mindset about the world that keeps you open to possibilities. Someone with an abundance mindset believes that there is enough to get around – enough time, enough money, enough energy. And they spend their lives looking for the next big thing.
This means that people with an abundance mentality give a lot. They are ready to devote their time, energy and money to projects and causes that are important to them. And they know that the resources are infinite and that more is to come.
What is a scarcity mindset?
In contrast, someone with a scarcity mentality believes that there will never be enough of anything. This mindset has an uncomfortable habit of reproducing. Rather than looking to the future and seeing the possibility of growth, someone with a scarcity mindset tends to hoard their resources and get stressed about the current issues in their life.
This mindset can severely affect your ability to reach for new opportunities.
Long ago, scarcity thinking was evolutionarily beneficial because it helped us survive when resources were scarce. However, they have served their purpose. It’s time to move on.
Abundance mindset vs. scarcity mindset
A mindset of abundance allows you to open yourself to new opportunities and possibilities, while a mindset of scarcity keeps you trapped in your current position.
For example, if someone with an attitude towards abundance sees that they want a promotion at work, they will do everything in their power to prepare for success. And they won’t be afraid to walk into their boss’s office and ask what they want. Chances are they’ll get it too.
But someone with a scarcity mindset won’t even see the benefit of trying to get into that better position. They will talk yourself out of it by asking, «What if I’m not good at this role and I get fired?»
They will be so focused on getting what they already have that they are not ready to look ahead and see the possibilities.
Why is a scarcity mentality bad?
Too many people fail at work, wealth accumulation, and relationships because they assume a scarcity attitude. This mindset focuses on what you lack and what you cannot achieve. It uses self-talk like «I could never do this» or «I don’t deserve it».
This mindset is harmful in the long run, especially in the workplace. If you have a scarcity mindset, you cannot celebrate the success of others. Instead, their success is perceived as a threat to your workplace. You don’t see colleagues as a team because you see them as competition.
In addition, you will not be able to think ahead to find innovative solutions to problems. Instead, you spend your time doing things by the rules and grumbling when the status quo is disrupted. Your scarcity mindset will actually prevent you from earning the promotions you desperately want.
And from a financial perspective, when you have a scarcity mindset you can get obsessed with the idea that your money is getting tight. You will not be able to enjoy your life and plan for the future. This inhibits your potential for making money.
Having a scarcity mindset can make you unhappy. But a lot of people don’t get out of this way of thinking because it’s easy to have a scarcity mentality. Developing an abundance or growth mentality takes hard work and changing your values. Not everyone wants that.
How to Develop an Abundance Mindset
To take on the excess thinking, you need to work on developing a forward-thinking mindset that shoots for the best scenario.
Stephen Covey, author of the 7 Habits of Highly Effective People, calls it a «win / win attitude». The goal is to find a solution that works for everyone.
With an abundance mindset, you choose to believe that there is enough for everyone and that everyone can share a piece of the pie. Simple things like celebrating your coworkers’ successes at work or passing on freelance leads when they come to you are ways you can work on an affluence mentality.
Challenge your scarcity mentality
The first thing you need to do in order to develop a growth mentality is to interact with your scarcity mentality. Ask yourself what resources you think are scarce or what areas of your life are in competition.
When you find these trigger points you may wonder why you are thinking this way. You will be able to resolve a negative thought and replace it with one that corresponds to a rich mindset. This will allow you to bring more joy and gratitude into your life.
Say you are jealous of Susan for just getting a job promotion. Susan is a good worker and she deserves a promotion. But you just can’t find it in your heart to be happy for her.
Ask yourself why. Maybe you are jealous and thought you should have been promoted. You might think that Susan’s promotion affects your boss’s response when you ask for a raise.
Whatever the reason, offer a counterpoint that is anchored in an abundance mindset. Remind yourself that you are good enough for a promotion and ask yourself what you can do to show this to your boss.
With this new, more positive mindset, you’ll have the confidence to go to the boss’s office and negotiate a better role and higher salary. You’re worth it!
How To Grow Your Business With An Abundance Mindset
When you work for yourself, an abundance mindset is a great way to increase your income. You can use it as a tool to improve your business results or achieve a long term financial goal.
Building a side business or business is one of the best ways to capitalize on this growth mentality. Instead of focusing on what you don’t have, focus on how to grow your business. Sit down and write down goals for your business. Place your goals in a place where you can see them regularly and, on difficult days, remind yourself that more is possible and you will achieve your goals.
While affluence mentalities are not a substitute for the hard work of running a business, they can help drive out negative thoughts and keep you focused on what you want to achieve.
Achieve financial independence with an abundance mindset
Using an abundance mindset is especially helpful when you have a goal like achieving financial independence.
If you think there is enough money, you can go for more. Instead of focusing on what you have like your W-2 income, with an abundance mindset you will see that you are good enough for more money and that more money is available. This is in stark contrast to the scarcity mentality which focuses on hoarding money but doesn’t allow you to enjoy the process of wealth building.
If you are interested in learning more about achieving financial independence, check out our new course, Financial Freedom in Uncertain Times. This video course gives you an in-depth look at every aspect of achieving financial independence through detailed lessons, exercises, and interviews.
The bottom line
Having an abundance mindset is a great way to increase your earning potential and meet your financial and lifestyle goals. It takes energy to achieve an abundance mentality, but the benefits far outweigh the costs.
With an abundance mindset, you will be able to get what you want in life with the belief that there is more than enough to get around. You will be a more generous, thoughtful person. And you’ll be better placed to achieve your financial independence – and get the most of it.