According to Dictionary.com, scarcity means, “insufficiency or shortness of supply.” When I refer to money scarcity, I’m referring to the lack of money—more specifically, a person’s thoughts around their lack of money. Understanding money scarcity is key.
In this post, I get specific about how a person thinks because we’re often biased. We may think we have a lack of money when we actually don’t. I want to make sure you understand money scarcity and how it impacts you, so you can start shifting your frame of mind and putting yourself in a position to receive more blessings.
Understanding money scarcity
First, what is money scarcity?
As I touched on earlier, money scarcity is a lack of money, or a person’s thinking that they have a lack of money. We’ll distinguish between these two ideas further on in this article. All I want you to understand for now is that a person truly can have money scarcity (a lack of money) or they could just think they have money scarcity (they do have enough; they just don’t think so).
Unfortunately, the more you think something is true, the truer it becomes for you. For example, if you’re constantly telling yourself you don’t have enough—whether it’s true or not—you’ll never believe you have enough.
This is why the mindset is critical. How you think often dictates how you behave and those behaviors drive you to actions that align with how you think. If you think you’re broke, you’re going to act broke.
What actually constitutes true money scarcity?
Since scarcity means “shortness of supply,” money scarcity can be seen as a shortness of money supply. Basically, money scarcity is a lack of money.
What constitutes true money scarcity is a person not having enough to survive on. Survival doesn’t mean shopping, dining out, or traveling. Survival means having a roof over your head and any kind of food on the table.
The best way to determine if money scarcity applies to your situation is to get clear on your numbers. What amount do you have coming in? What amount is going out for your basic bills and necessities? What is left over?
If you have a left-over amount, then you’re not money scarce. You’re just not doing the right things with your money. On the other hand, if your income doesn’t cover your basic living necessities, then the money is scarce for you. That has to change ASAP.
The longer you’re in a money deficit (i.e. more going out than coming in), the further behind you will get. Start looking into adding additional income streams. Your only focus should be on bringing in more money.
Why changing your views around how much you have is critical
After completing the exercise above, regardless of what the results show, you need to start changing your views about your money situation. You should no longer think from a place of lack or scarcity. Instead, focus on finding a solution to the problem.
If you have a profit each month, the solution is to make sure that profit stays in your account. If you have a deficit, the solution is to make more money.
At this point, you should understand whether your problem is one of mindset or of true scarcity. Now: How are you going to fix it?
Shifting your view from “lack” to “solution” will change the trajectory of your actions. Like I stated above, how you think dictates how you act. If you think in a solution-based way, you’ll act like a person who solves problems. That’s what you want—especially with your money.
Negative thoughts lead to negative situations
Continuing the thought process above, if you’re constantly thinking negatively about your money (or life in general), negative things will constantly happen, whether your actions create the negativity or not. You won’t even be able to see good things happening, because you’re only focused on the negative.
Negative thoughts lead to negative situations.
As you start shifting to a solution-based mindset, start practicing gratitude for the problems you do solve.
More importantly, start recognizing the good things in your life (I promise they exist). Focus on what you can control. Choose to see the good and solve the bad. Money scarcity can get the best of you, but only if you let it!
I cover money mindset in detail in the Money Management Mastery for Working Women program. If you’re ready to start mastering the money you make, you don’t want to miss the self-paced online course!
Related: The One Thing You Need to Change Your Finances for the Better
When you think in terms of “lack”, you’ll never have enough—in any area of life. Start appreciating what you have by expressing gratitude for your money. If you have a job, you have something to be grateful for.
You can change your mindset around money scarcity by simply shifting your thoughts. Do you tend to come from a place of scarcity or abundance? What keeps you focused on the positive with your money? I’d love to hear from you, so post a comment below.