By Dr. Nicole Garner Scott
If you find yourself living the constant cycles of money highs and money lows, then it's possible that you've cultivated a scarcity mindset in relationship to money. At some point in your life you may have experienced a money trauma which now dictates your mindset concerning your finances. Consequently, you now operate from that mental space leaving you with less than desirable results. With a scarcity mindset, you'll find yourself always focusing on never having enough.
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, and the emotional connection you have with what money represents.
How do you shift from a scarcity mindset to an abundance mindset?
Having an abundance mindset is the complete opposite of having a scarcity mindset. An abundance mindset keeps in mind every possible favorable outcome for your financial situation while allowing you to be open to each one. When you have an abundance mindset, the choice to spend less doesn’t feel like much of a sacrifice because your life is already full of good things. When you have an abundance mindset, investing just seems like you’re giving a gift to your future self — and that feels good.
If you start a new business, then you work with the certainty that you will have more than enough business activity 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 nor is it something you ponder over endlessly.
This is because an abundance mindset asserts that regardless of your financial pursuits, you will always have more than you need to meet your goals. Once you start embodying this mindset, then your financial life flows towards the energy you give it. If you focus on making and having more than enough money then that will be your outcome.
However, if you focus on lack and scarcity, then that will be your sole experience as it relates to money.
Here are five ways you can start changing your money mindset from scarcity to abundance:
1. Organize Your Home, Finances and Life
The simple process of getting your possessions, your time, and your information better organized does a lot to cultivate an abundance mindset. By doing this, you begin to see how many things and how much time you actually already have in your life.
2. 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.
3. 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.
4. 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 doubt, envy and despair concerning the state of your finances. Consider your personal financial goals for yourself, not as they should be in relation to what you see in others.
You may see someone driving the latest car and feel jealous, however, you may not see 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 have.
Money is personal and best kept that way to avoid a negative shift that will inevitably affect your financial situation.
5. 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.
As you consider changes to your finances, start with examining your mindset to see how you may be sabotaging yourself even while planning fervently for your financial future.
For more personal finance information, join Dr. Nicole Garner Scott at the Coin-fidence Conference powered by Amount Financial in Atlanta, Georgia on April 12-13, 2019 at the Vault on Peachtree, with presenting sponsor Northwestern Mutual Financial Advisor Chris Campbell.
For more information about Dr. Nicole Garner Scott:
I am a certified money coach and founder of Amount Financial Services Firm. I specialize in creating breathing room in households, and realistic wealth plans to truly fit budgets while focusing on the future. I not only survived life's financial setbacks, but I also dominated them by paying off student loans, eliminating family debt and being the generation to restore wealth back to my family’s name. My work is my contribution to combat the societal constraints that financially limit multi-cultural communities. Follow me on Twitter/Instagram/Facebook at @AmountFinancial.
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