If you find yourself living “paycheck to paycheck” then it’s possible that you’ve cultivated a scarcity mindset in relation to money.
You may find yourself afraid to spend money or spending most of your money the minute it hits your checking account.
While there are certainly emotional components associated with this, most important of all is the mindset you maintain around how you make and spend money. With a scarcity mindset, you’ll find yourself always focusing on never having enough.
How then do we shift from scarcity to abundance?
First, let’s discuss what an abundance mindset looks like. As you may have guessed, an abundance mindset is very much the opposite of a scarcity mindset.
An abundance mindset keeps in mind every possible favourable outcome for your financial situation while allowing you to be open to each one.
If you start a new business, then you work with the certainty that you will have more than enough customers to support your financial goals. The fear of spending money or never making enough of it doesn’t exist for you because it is not an option not is it something you ruminate about endlessly.
Let’s take a look at a few ways that you can start shifting your mindset from scarcity to abundance.
Money needs direction
Most people know this as having a budget or a financial plan. From a practical standpoint, this makes complete sense. If you don’t have a plan for your money then you’ll never really shift your financial situation. However, the structure of this plan stems from the mindset that your money needs direction and a plan in order to meet your financial goals.
Cut emotional spending
Emotional spending is a huge issue for many people because we are often driven by our emotions depending on what’s happening in our lives. If life isn’t moving according to our plan then we can feel powerless amidst chaos and turn to money in order to make things right. Money represents power, so it’s no surprise that many use it to ease their pain and regain a sense of control when life throws a few curveballs.
Money is personal, not relative
It’s easy to compare your financial situation to those in your family, friends or coworkers. This can create feelings of lack, envy and despair concerning the state of your finances. Consider your personal financial goals for yourself, not as they should be in relationship to what you see in others.
You may see someone driving the latest car and feel jealousy, however, you may not see that they are just barely scraping together the money to make the payments every month. Yet, as you compare your situation, it shifts your mindset from being appreciative for what you have to now being insecure about what you don’t.
Change your money script
If you’ve ever said to yourself “I’ll never be able to afford that!” or maintain the perspective that you will never be as successful as your wealthy friends then you’ve encountered a negative money script. Money scripts shape the mental tape we have about money.
They are commonly referred to as money blocks.
Negative money scripts can have disastrous effects on your financial situation because what you think affects how you feel which then shapes the actions you take and eventually, the results you get.
You can see why it’s important to identify any negative money scripts so that you can shift them into positive scripts that will eventually shape your financial life in a positive way.