I smiled because I remembered how I used to be afraid of being broke as well.
One specific incident I’ll always remember is sitting in my car and trying to talk myself into getting down from my car to buy some things I needed at the supermarket.
I was literally shaking in the car because I thought about what I had left in my bank account and honestly didn’t know when my next income was going to come.
You might wonder, ”Wasn’t I working? Didn’t I have anyone to ask for money?”
I had stopped working 9-5 at the time and I was working contracts with a couple of start-up companies but at that point, they had been owing me money for a few months.
I tried to make do with the cash I had but my account balance kept dwindling before my eyes and it was scary.
Did I have anyone to ask? Oh yes, I did but this was for me personally. My home was fine, we had more than enough to get by but I just had this strong anxiety because I wanted my debtors to pay me what they owed.
The anxiety was crippling. It took a lot of effort to get down from the car and buy what I needed.
I hated that feeling, but now I know I was ignorant of simple principles on how to create wealth.
One simple principle is I needed to get rid of ”Scarcity thinking”.
Scarcity thinking is when you believe you may never have enough money to do what you really want or enjoy in life.
A person with a scarcity mentality lives in fear that they are going to lose their time or money.
And because they believe that there will never be enough, they are in constant competition to ‘stay on top of things’.
Alternatively, someone with an abundance mindset believes that there is always more of everything in life, whether that’s money, relationships, resources, opportunities, etc. They focus on the limitless possibilities that exist in life. They choose to think in positive terms about everything that happens in life, good or bad.
As a result of this way of thinking, they attract amazing experiences and opportunities into their lives.
‘With a scarcity mindset, you believe that everything is limited. Time is limited. Money is limited. Love is limited. This causes you to worry about the future. You’re consciously or unconsciously more concerned with what might go wrong than with what could go right. You make fear-based decisions. You’re afraid of missing out. You’re afraid of not having enough. You have trouble with moderation and often exhibit “all or nothing” behavior.
With an abundance mindset, you believe there’s plenty for everyone. There’s plenty of wealth, prestige, and happiness to go around. You’re optimistic about the future. You think things will work out even if there are bumps along the way. You make decisions based on the Big Picture rather than a single snapshot in time. It’s easy for you to balance tomorrow and today.’1
In his book, The 7 Habits of Highly Effective People: Powerful Lessons in Personal Change, Stephen Covey explains that when you live in a world of scarcity, you compete for available resources, even when there is an abundance of resources.
It keeps you blind literally and it is a horrible…horrible way to live.
It has taken me a while but I set out to correct this thinking and over time I continue to see the results of changing my thoughts everyday. Now, I know how to change my thinking immediately I get anxious about money and focus on the limitless possibility of abundance instead.
Here’s the thing: In so many ways, financial freedom depends on casting aside a scarcity mentality and embracing an abundance mindset instead. Financial well-being is fundamentally tied to positive expectations of the future.
As the famous quote suggests: “The secret to having it all is believing you already do”.
I hope you set out to build an abundance mindset this year
So this week my question to you is, What type of mindset do you have? One mindset will imprison you, while the other will set you free.
Leave a comment below.
Next week, I’ll share the steps I took to bring my journey to abundance to reality.