Coined by Stephen Covey, the author of the “7 Habits of Highly Effective People,” the term scarcity mindset is the belief that wealth and opportunities are limited and based on the fear that one will never have enough. People with this mindset often focus on lack and are typically so focused on what they don’t have that they cannot see the abundant possibilities around them. This thinking is a self-sabotaging mindset that impedes one’s ability to move beyond deficiency.
There are several fantastic resources on the internet about how to identify and move beyond scarcity thinking. I have cultivated five resources here about overcoming the scarcity mindset as it relates to finances. The resources on this list are accessible via multiple platforms. There are two articles, two videos, and one podcast. They all provide detailed descriptions of scarcity, how it shows up in the most unexpected ways, and strategies to move beyond these limiting beliefs.
Articles:
In this article, Business Insider discusses the interesting tendency for women to have greater scarcity thinking than men. The author, Aly Yale, discusses how pandemic and other macro-economic concerns have further entrenched the scarcity beliefs of the people already prone to them. In addition to the six strategies that Yale outlines, the big takeaway from this article is captured in the following quote:
“The scarcity mindset is common, particularly in today’s challenging economic climate. But it is not permanent, and there are many ways to shift your mindset and feel more empowered in your financial planning and decision-making.”
— Aly J. Yale in Business Insider
In this Medium article, science writer Emily Underwood uses research to talk about how to reverse a scarcity mindset. Emily illustrates how scarcity thinking reinforces a downward cycle that can be harmful to multiple parts of one’s life. In addition to the three excellent strategies, she provides to help readers move beyond scarcity thinking, the big takeaway from this article is:
“A scarcity mindset, in contrast, rarely enhances our performance. Preoccupation with scarcity often prevents us from seeing our way out of a predicament, a phenomenon called “tunneling” …Internalizing those negative feelings is a fast track to failure — because it prods you toward unhelpful self-soothing behaviors such as impulse shopping, which may only sink you further into debt”.
— Emily Underwood in Forge
Videos:
In this video, famed Medium author Ayodeji Awosika talks about moving beyond a scarcity mindset to an abundance mindset. Interestingly, Awosika talks about how scarcity is a natural protective mental function that helps to protect us from feelings of loss. Despite the survival benefit of scarcity thinking, he talks about the critical importance of bridging the gap between scarcity thinking and abundance thinking in order to move from survival to thrival. The big takeaway from this video:
“You don’t get any value in being scarce…you want to save money but who is the classic example of the most unhappy person in the world? Ebenezer Scrooge! Total scarcity, always hoarding money, hoarding every little thing…that means you’re going to cherish things that aren’t valuable, and you’re going to be in situations that deteriorate over time.”
— Ayodeji Awosika on his YouTube Channel
In this video, music icon Alicia Keys talks about how she struggled with a scarcity mindset, even after her first big album hit. She shares personal stories of grappling with feelings of worthiness as she began recognizing and overcoming her scarcity thinking.
“I’d grown up in a survival mode, clutching tightly to every dollar that came my way. And when you spend from a belief that every cent you earn will be your last, you operate from a place of scarcity, context that runs counter to the energy of abundance. Money, like all life, is an energy exchange…you attract more or less of what you want by how you choose to interact with it…”
— Alicia Keys in her book More Myself
Shifting From Scarcity to Abundance — Alicia Keys
Podcast:
In this episode, mindset and business coach Kerry Lyons talks about how a scarcity mindset can be a subconscious saboteur in business. Her podcast is called the Imperfect Life, and in episode 88, she provides interesting musings on how scarcity thinking is rooted in corporate culture, comparison, envy, and feelings of danger. In the episode, she gives three excellent strategies business owners can use to help get over their scarcity thinking.
Here are two takeaway quotes from the episode:
“Ultimately, in the scarcity mindset, all of your energy is on the things you don’t want… scarcity thinking is a way to ensure you get what you don’t want.”
“…Would I be a disaster-mongering, tabloid journalist energy…Rat?…If I radically loved myself? Probs not. Probs not! Or would I grant myself permission to feel my feelings for a short while…. and then bolster myself back up to self-belief?… Which is it to be? Radical self-love or beating myself over the head and bringing myself further away from what I want …because ultimately those are our two choices.”
— Kerry Lyons on an Imperfect Life Podcast
I hope that some of the resources provided in this article help you the next time you fall into scarcity thinking. If you enjoy reading content like this, consider checking out my writings on Medium you can sign up using my referral link right here. It’s $5 a month, and you get unlimited access to my articles and many others like mine. Thanks. Until next time.
To your Prosperity,
-Genietha
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