The Scarcity Mindset: Why It Holds You Back and How to Break Free (2024)

In today's fast-paced world, we often find ourselves battling an invisible enemy that holds us back from reaching our true potential—the scarcity mindset. This mental trap can be subtle, but its impact on our lives is significant. The inspiration for this weeks article came from two sources. The first was a podcast episode where Michael Easter spoke about the scarcity loop. The second was through the monthly Book Hour with Grit where Maya Sadasivan and Rohit Bahl spoke about self awareness and self regulation. In this article, I wanted to take what those two sources of inspiration provided to be able to dive deep into what the scarcity mindset is, how it manifests in our daily lives, and the science behind it.

Understanding the Scarcity Mindset

The scarcity mindset is a way of thinking that centres around the belief that resources, opportunities, and success are limited and hard to come by. It's a mindset grounded in fear—a fear of not having enough, not being enough, and not being able to secure what we need for our well-being. When we operate from a scarcity mindset, it affects our decisions, behaviours, and overall outlook on life.

What Does the Scarcity Mindset Look Like?

1. Hoarding: People with a scarcity mindset tend to hoard resources, whether it's money, time, or even affection. They fear that if they give too much away, there won't be enough left for themselves.What does this like? Imagine someone who refuses to share their knowledge at work because they believe that if their colleagues become too skilled, they might lose their job security.
2. Zero-Sum Thinking: Scarcity thinkers often view life as a zero-sum game, where one person's gain is another's loss. They can't fathom the idea that collaboration and cooperation can lead to mutual benefit.What does this like? Think of a person on a team who sabotages their team's efforts to outperform because they're afraid that their teammates' success will diminish their own chances of recognition.
3. Fear of Taking Risks: People with a scarcity mindset are generally risk-averse. They avoid taking chances because they're terrified of losing what little they have.What does this like? Picture someone who turns down a promising job opportunity in a new city because they're afraid of leaving behind the security of their current location.

How many of these examples can you relate to? Not just through the people around you but this might even be you!

The Science Behind the Scarcity Mindset

Understanding the science behind the scarcity mindset helps us see why it's such a potent force in our lives. It all comes down to how our brains are wired.

1. Amygdala Activation: The Fear FactorThink of the amygdala like your brain's alarm bell. When you feel like you don't have enough of something, like money or time, this alarm goes off, and it's loud. The more you worry about not having enough, the louder it gets.What Happens: When the amygdala is on high alert, it triggers stress hormones, such as cortisol. These hormones put your body in a state of anxiety and fear.So What: This state of high anxiety makes it hard for you to think straight. You might find it tough to make good decisions or focus on anything other than your immediate worries.
2. Tunnel Vision: Focus on Right NowPicture this: you're wearing blinders like a racehorse. You can only see what's right in front of you, not what's on the horizon.What Happens: When the scarcity mindset kicks in, you get laser-focused on your immediate problems. It's like your brain is shouting, "Deal with this now!" and you can't see the bigger picture or plan for the future.So What: This narrow focus can make you miss out on long-term opportunities because you're too busy dealing with today's issues.
3. Bad Decision-Making: Fear Takes the WheelImagine you're driving, and instead of you, fear is behind the wheel. Fear drives you to make quick decisions without thinking things through.What Happens: Scarcity thinking can lead to snap decisions, like taking out a high-interest loan or making risky investments, just to ease your immediate worries.So What: These quick-fix decisions often end up making things worse in the long run. You end up in more financial or resource-related stress because fear is steering your choices.

Understanding this science helps you see that the scarcity mindset isn't just in your head—it's in your brain. Knowing how it messes with your thinking and decision-making is the first step to breaking free from its grip.

Breaking Free from the Scarcity Mindset

Now that we've explored what the scarcity mindset is and how it operates, let's shift our focus to strategies for breaking free from its grip and embracing a mindset of abundance.

• Awareness: The first step is recognising when the scarcity mindset is at play in your life. Pay attention to your thoughts and reactions, and identify areas where you might be operating from a place of fear.How can you do this? If you find yourself constantly worried about money, ask yourself whether your actions are driven by a genuine need or a fear of scarcity.
• Practice Gratitude: Gratitude is a powerful antidote to scarcity. Regularly remind yourself of the abundance in your life, whether it's the support of loved ones, your skills, or the opportunities available to you.How can you do this? Keep a gratitude journal, jotting down three things you're thankful for every day. Over time, this practice can shift your focus from lack to abundance.
• Abundance Mindset Affirmations: Replace scarcity-driven thoughts with positive affirmations that promote abundance. Repeat these affirmations daily to rewire your thinking.How can you do this? Replace "I'll never have enough" with "I have all the resources I need to succeed."
• Collaborate and Share: Challenge zero-sum thinking by seeking opportunities for collaboration and cooperation. Embrace the idea that helping others succeed can also benefit you.How can you do this? Share your knowledge and skills at work, knowing that a more knowledgeable team benefits everyone in the long run.
• Take Calculated Risks: Gradually step out of your comfort zone and take calculated risks. Understand that failure is a natural part of growth and that setbacks can be valuable lessons.How can you do this? Accept that new job offer and move to that new city, trusting in your ability to adapt and thrive in unfamiliar environments.

Conclusion

The scarcity mindset is a pervasive force that can limit our potential, but it's not insurmountable. By understanding its roots, recognising its presence in our lives, and adopting strategies to counter it, we can break free from its grip. Embracing an abundance mindset opens doors to opportunities, growth, and a more fulfilling life. Remember sometime's you don't know what you don't know, which is when a coach becomes a very powerful tool for you to call on to help you not just overcome but to actually bring awareness to a scarcity mindset.