Money Mindset, How To Go From Scarcity To Abundance

What is money mindset? Why does it matter? Well, it is simply how you feel about money, sometimes without even realising. It matters because the way you feel about money may affect your decisions when it comes to finances.

Why do we have a money mindset?

Well, money is actually so much more than the means to buy things.

There are a lot of emotions attached to money, and they can be deeply ingrained all the way from childhood.

And that is really not a surprise, considering how integral part of life money is. You need money for the basic necessities in life, like shelter and food.

No wonder it can be such a huge cause of stress in life.

Depending on your life experiences and childhood, you may view money positively (abundance) or negatively (scarcity).

Why does childhood matter?

The way you feel and think about money is shaped in childhood, by the way your parents manage and talk about money.

Children can easily pick up the overall mood in the household and how their parents feel about their financial situation.

This can turn into an unconscious money attitude.

For example, if at home you feel like there isn’t enough money to go around, it can lead to a belief that money is scarce.

The opposite would be true in a home where money was spoken about openly and in a positive manner.

Scarcity mindset

Scarcity mindset is the idea that there is limited amount of money available, and that what someone else has, is away from others.

This creates jealousy and greed, and an us vs. them attitude.

If you believe that money is scarce, it can make financial setbacks feel worse.

You might not see a way out if you don’t believe there is one.

Money actually isn’t a finite resource (although it might sometimes feel like that!), the potential to earning is only limited by your imagination.

From early on we’re sold this idea that we need to get a job and that’s the only way to earn money.

While it’s definitely true to an extent, your earning potential doesn’t end there.

Abundance mindset

The opposite of scarcity is the abundance mindset.

It is the belief that there is more than enough for everybody.

That what I have isn’t away from what you could have.

That there are endless possibilities of making more money, you just need to be willing to work for it, and/or get creative.

When you believe in the abundance of money, you’ll often have a more positive mindset around your finances in general.

If you believe you are always able to make more money, having less at times won’t feel so bad and stressful.

You also won’t feel so jealous of other’s possessions or the amount of money they have, you know that you can do it too if you really put your mind to it.

What made me aware of the concept of money mindset

One of the first personal finance books I read was Happy Money by Ken Honda.

I was excited to read a personal finance book and to take control over my finances.

But the book turned out to be not what I expected.

Happy Money is about your money attitude, teaching how to think of your money in a positive way, with gratitude, rather than giving you tips and advice on how to make the best of your money.

While at first I was a bit weirded out by this idea, it ended up being a very important money book to read, as it helped me change my attitude towards money.

I’m still a work in progress but for the most part I have this faith that money always comes and that I have enough.

One of the most profound things I read, (it was probably Happy Money, but could have been some other book as well) was about giving.

That if you tried to give, even a little bit, even if you thought you couldn’t afford it, it would help you feel like you have enough for yourself.

Logically after all, you wouldn’t give away something you really needed for yourself, right?

How I am moving from scarcity towards abundance mindset

For me, regular donations and generosity has really worked.

I started by making sure I would always pop coins into collection tins when I saw them.

It has now increased to regular monthly donations and I also make sure I’m generous with my friends, treating them for coffees etc. or gifts occasionally.

I feel like the giving has really helped me feel that I have enough, which has really changed the way I view money and my finances.

Now, especially in the face of financial difficulties (and yes, we have gone through hard times a few times, including being pretty much homeless), I have this underlying faith that somehow the money will come and we will get through.

So far, things have always worked out for us. And in the process, I feel less stressed.

While I understand that abundance mindset, gratitude, manifesting and the like won’t fix real money problems, I think for most of us the attitude change will help us feel more content in life, less stressed and less jealous of what others have.

It did that for me, so why not for you as well!

Knowledge is the first step when it comes to changing anything, here is a list of books that I have found helpful on my personal money journey.

Have you heard of the abundance mindset concept before? What are your thoughts?