I grew up in a middling family, I always heard the saying “Money doesn’t grow on trees” and it must have affected me deeply because I always chased money. I never imagined that over time this would have such a profound effect on the way I thought about money. When I hit rock bottom in my mid-20s, with limited resources and scarcity at the time, I realized 2 things; not only was I mismanaging my money, but I realized that I was thinking about money in a way that was boring me.
If you think that even though you earn well, it is never enough and that wealth is only for “other people”. You may be facing a scarcity mentality. Here, with my years of experience, I will tell you step by step how to turn this scarcity mentality into abundance. Of course, it has never been easy for me and it will not be easy for you. But you are lucky you have Sophia with you.
What is the Scarcity Mentality about Money?
Scarcity mentality is the belief that one’s constant basic resource is not enough. It is based on the belief that money is hard-earned and easy to lose. If you focus your mind on scarcity, you get stuck in this mindset and cannot see what is going wrong. Before this scarcity malaise takes hold of you like an insidious disease, see if you have the following 4 symptoms. Take a look.
- Feeling guilty when you spend even on basic needs
- Constantly comparing your finances with others.
- Avoiding money talk due to fear or embarrassment
- The belief that “I will never be able to save/invest/earn more”
In contrast, an abundance mindset is not about magical thinking or pretending to be rich. It is about believing that you can increase your income, manage your finances wisely, and create opportunities for yourself.
Where does scarcity come from?
Our ideas about money come from the family we were born and raised in. If you grew up in a family where money was scarce, and bills at the end of each month created chaos, and unforeseen expenses brought financial stress. These patterns shape the way you think about money.
What is your character, growth or fixed mindset? This concept is important for how you think about money. If you believe that you can change and grow financially, you are on the fast track to abundance.
How I Started the Change for Money Mindset
I’m sharing with you a list of what worked for me and I’m sure it will work for you too.
1. Identify the beliefs that are limiting for you
I started by writing down all the negative thoughts I had about money. “I’m no good with money, I’ll never make more than this, and investing is for rich people.”
Putting these meaningless beliefs on paper made me realize how powerless I am. More importantly, I can challenge these unwarranted beliefs. I asked myself:
“Where did this belief come from? Is it actually true? Is it helping me?”
The answer to this question is 95% no
2. Be Grateful for What You Have
You don’t have to think too hard. Life is very short and appreciate every day. For example, don’t obsess about something you can’t have, instead write down 3 things you are grateful for. Mine are just below:
- I pay my rent on time.
- I cook at home and now I can save money.
- I have the ability to work and earn money.
Gratitude doesn’t ignore problems; it changes how you react to them.
3. I learned to talk about money without shame
Like a shy child, I used to walk away whenever money was talked about. When I researched this topic thoroughly and carefully, I realized that most people have the same doubts and fears when it comes to money.
Do yourself a favor today and follow the example of Ramit Sethi, an expert on money mindset.
4. I Set My Goals Based on Values, Not Fear
Scarcity makes you reactive: “I need to save because I am afraid.”
Abundance is proactive: “I want to save so I can travel, invest or have peace of mind.”
It is important to understand that you should avoid impulsive decisions and instead motivate yourself by setting short and long-term goals.
Real Changes I’ve Noticed
After implementing these changes in my life, I have tangibly realized that I have improved a lot in these 4 areas:
- I managed to save consistently, even if my income did not increase
- I finally negotiated a hike (twice) because I believed it was worth it
- I created a basic investment portfolio that I had never thought of until this age
- Most importantly: I stopped panicking about money
I still have financial goals to achieve. But now I see money as a tool, not a threat.
Final Thoughts
Money Mentality Talking about it is not about being ashamed or naive. It is only about ignoring financial realities. If you feel financially ready for change and development. Read or listen to Mindset-oriented Financial Voices: The Psychology of Money by Morgan Housel.
If I could go back and tell my younger self one thing, it would be this:
“Money isn’t your enemy. It’s a mirror. Change the story you tell yourself—and everything else starts to shift.”
