What is the difference between a rich person and a poor person? It may not be what you think. There are many people who have lots of money, but they still feel like they don't have enough. On the other hand, there are those who seem to always struggle financially, yet they never give up hope that their luck will change.
So what's the difference? The answer is simple: how each person sees money as an obstacle (scarcity) or as opportunity (abundant). This blog post explores how to transform your mindset about money so that it becomes something positive in your life instead of something negative!
Scarcity Mindset vs. Abundant Mindset
Two basic mindsets are prevalent when it comes to money. Most people have developed one mindset or the other without even realizing it. Those with an abundant mindset believe that they can make more money. Those with a scarce mindset believe that there is not enough money to go around.
Mindset of Scarcity – this mindset believes there is a lack of money and success
It's important that you understand which mindset type you fall under because it will impact how you view money and things related to money.
Let's start with mindset of scarcity, because this mindset is the most common mindset type.
According to mindset coach Christy Whitman, people with a scarcity mindset have been raised in families that have taught them not to talk about money. They don't know how much other family members earn or how much they spend.
These folks assume everyone in the family gets an equal amount of money, which means they assume there's a lack of money in their families. Since mindset of scarcity is based on lack, it can cause people to panic when faced with financial challenges because this mindset believes that if you don't have enough money to pay for something, then you can't have it.
It's a mindset that believes there isn't enough money to go around and we all need to feel like we're struggling on the same level as everyone else.
If your mindset is scarcity, I want you to know it's possible to change this mindset!
Mindset of Abundance – this mindset believes there is an abundance of money and success.
For example, when I started my digital content business, I knew there were a bunch of people offering digital content who were already successful and had an overflow of clients. Having a scarcity mindset would have deterred me from offering my services by thinking there wasn't enough customers for me.
However, having a mindset of abundance, I saw the opportunity to focus on offering the services to business partners, who then referred me to their family and friends.
What Does Your Money Mindset Look Like?
Do you live paycheck to paycheck, with no savings and nothing set aside for the future?
Do you have a mindset that money is scarce, so saving up is impossible?
Do you allow yourself to dream about what your life could look like if you had more money or saved more, or do you feel that financial freedom is a myth? Do you think about how money could change your life “if only”…?
When you look at your mindset, what does it look like? What's your relationship with money? How do you feel when you think about money or finances in general? Are there any thoughts or emotions that come up around money?
Unfortunately, because most people develop their mindset without even realizing it, they are often stuck in a mindset that keeps them from achieving the financial results they desire.
If you would like to transform your mindset so you can make more money while spending less here are some things you can do:
How to Transform Your Money Mindset
- Find a mindset mentor, coach, or books.
In order to truly change your mindset, it helps to have someone who has been where you are who can model the mindset for you and support as as you go through the transformation. A less expensive method is finding some mindset books, such as Think and Grow Rich, By Napoleon Hill.
Here's a whole list of FIRE book recommendations. FIRE stands for Financial Independence, Retire Early.
2 . Examine the mindset you have – be honest!
If you are not sure what mindset you have, ask yourself these questions: Do I believe that making money is difficult or do I believe it's easy? Do I believe that there isn't enough money to go around for everyone or do I know that money can come to me in multiple ways?
3. Work with your mindset.
Working with your mindset is the key to making it what you want it to be. It might not transform overnight but it will. You can begin today by choosing one mindset technique that you would like to work on and do it for 30 days!
Speak affirmations, read success stories, and surrounding yourself with supportive people – online and offline.
4. If you need to, transform your mindset gradually.
It's ok if you need to go at a slower pace than someone else. It is important that you give yourself time and space so that as you change your mindset it can become yours and not someone else's. This will help eliminate the fear of failure that might come with trying something new.
5. Track your mindset successes.
Studies have shown that tracking your mindset successes helps keep you motivated towards success. The more successes you have, the faster your mindset will transform! Try keeping a daily mindset journal or even just looking back through business cards to see how far you've come.
6. Give it time – change doesn't happen overnight.
Your mindset is a mindset for a reason. It has been with you since your childhood and might take some time to transform into what you want it to be. Be patient and don't give up. You can do this and I know that if you choose mindset transformation, your life will change forever.
Your mindset about money is a mindset that can be transformed. This mindset will have a huge impact on your financial success. It's so important to understand this mindset and how it impacts you as an individual as well as your family as a whole. You'll need patience and persistence, but the results are totally worth it.
It's time to transform your money mindset. You deserve a life of abundance and can achieve financial freedom through the power of this new, positive mindset towards money.