Money Scarcity and The Wealth Mindset

Money scarcity is a real thing. I would even venture to say that, in our country, money is the root of scarcity.

Scarcity is driven into all of us at the very beginning of understanding trade. We no longer are taught to understand trade through value but now, more than ever, we understand trade through money. And, because money is a limited resource based on how fast you can get it versus the rate at which to expend it, it is immediately viewed as a scarce resource. It drives greed and fear around the scarcity mindset it breeds.

But what is money scarcity?

Scarcity is the idea that there is not enough of a resource to provide for all of a society’s wants and needs. The problem is, while scarcity is great if you’re trying to sell something, it only produces greed and fear among a population.

Worth noting, scarcity isn’t tied to how essential a resource is. Instead, scarcity is tied to the demand for a particular resource or commodity and the availability of the resource or commodity. With that, scarcity is more likely to be manufactured than organic.

And it’s good for business.

“If a society coordinates economic plans on the basis of willingness to pay money, members of that society will strive to compete to make money.”

The Economic Way Of Thinking  (affiliate link to Amazon [costs nothing extra and helps me]).

You know why? Because they are competing for a resource or commodity that is viewed as being scarce. Money is the common medium of exchange in our culture and therefore is the most scarce resource of all.

So is scarcity real?

Sure. But, it may not be happening the way you think it is.

Scarcity can be, and most likely is, manufactured in three ways. The first, holding resources and commodities from the market. The second, creating desire or craving around something that is, or appears, difficult to produce. The third, panic.

In either of the first two examples, there aren’t enough of the resource or commodity in the marketplace and thus, scarcity ensues. In a capitalist culture like ours, money is still the most common trade and feeds a money scarcity even when it isn’t the focus. That happens simply because if a resource is viewed as scarce we all trade money for the resource and then money becomes scarce.

The third example is incredibly easy to see. All you have to do is remember the last time you had a severe weather warning and tried to buy milk and bread. People are cleaning the shelves on things they don’t even regularly consume. Panic is great for business.

The Wealth Mindset

If I told you that the tree in the center of our village would immediately produce a fully ripe fruit instantly every time one is taken from the tree and that it would never ever fail, would you ever feel the need to take more than what you immediately were going to consume?

Probably not.

We take more than we consume because we are afraid of the resource being no longer available.

And that scarcity drives consumer behavior.

Not just in the marketplace, but in the human mind.

Need an easier example? Just look around… no one is trying to get all the oxygen from the air because we don’t feel like we are going to run out…

Don’t fool yourself

It is so easy to think that if we just had a little more, then we would be comfortable. We lie to ourselves and believe that contentment is just around the corner.

It is… but it’s not found in money.

Money is just a magnifier. If you are unhappy now, you will be unhappy with more money. If you are stingy now, you will be stingy then too. Right now, if you aren’t viewed as being generous, you won’t magically become generous because of surplus.

Actually, if you’re lucky you will learn something about yourself.

We are all driven by our habits, and until we learn to embrace change and change who we are and the results we are producing by changing our habits, no amount of money is going to change who we are.

How to overcome the scarcity mindset

There are a few things you can do to overcome the scarcity mindset. Of all the things I’ve shared on this site, these things may be some of the most important.

Don’t take a seat, take a walk – Get outside and talk a walk in a park or go hiking on a trail. While you’re out there, realize how plentiful the resources are that you actually need to survive and thrive. Human beings have lived on this planet for millennia.

Determine what is actually important to you – We live in a free society that is bondaged by the ideas from someone else’s happiness. Take a step back and consider what makes you happy, then pursue it. Wouldn’t it be wild if everyone wanted a thing and the demand made it scarce but no one was looking at the thing you wanted that was in abundance?

Learn to trade on value instead of price – Price is tied very easily to money. Money is just a common exchange. Take money out of the equation and you can start to see how you actually value the resource or commodity that interests you. I recall reading that Value equals Benefit minus Cost. If the cost is higher than the benefit there is no value left.

Get appreciative in the moment – I’ve already been poor and as a result, I get to appreciate what I have a little differently. A simple example; I am so comfortable and grateful that I have a hot coffee next to me while I type and listen to the quiet sounds of the still morning. It sounds poetic and heady but later when I don’t have coffee in my hand and the day is loud I can hold on to how much I appreciated this down time and patiently wait for the next moment.

Start sharing right now – Remember that having more is only going to magnify who you are and what your habits are. This is the time for you to start building better habits. Start examining what you do with what you have. Look at how much you try to hold on to instead of share. Scarcity is stingy. Wealth is not.

Let go…

Deal with the fear of letting go. It is not as bad as it may sound but you need to experience it for yourself.

I would even challenge you to give away something that you think you need or depend on to see how much you really don’t; within reason, of course.

Scarcity is real. Money scarcity is real. But wealth and abundance are also very real.

In the next couple of weeks, I will be writing about how to generate resources for your personal economy. I will be sharing some ideas on considering business ideas, creative ways to save money, and a family business challenge.

I hope you are looking forward to it as much as I am.

Please share this content with someone.

Let’s be better; together.

Rashad

 

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@rashadpleasant

@rashadpleasant

I am Rashad. I'm an entrepreneur with over 15 years of cultivating relationships, chasing ideas, and over delivering on promises. I want to share some of the things I've learned along the way with you. Hopefully, it will inspire you to define and achieve your personal definition of success.