Financial Scarcity vs. Financial Abundance: What Money Mindset Are You?Submitted by MacDev Financial Group on January 27th, 2016
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Are you in control of your money, or does money control you?
“I’m living paycheck to paycheck”, “I’m just getting by,” “I’ll never get ahead,” are all phrases we’ve probably uttered at one point or another over the course of our lives. What they all have in common is an undertone of a lack of financial resources and money. At a deeper level, they reflect an attitude we often find ourselves projecting—financial scarcity.
Individuals with a financial scarcity mindset see their financial situation negatively. Bottom line: They feel like they don’t have control over their finances. Their finances control them. And what often happens when people don’t feel like they have control over their money and finances, is they either become complacent or slip into denial. It’s easy to fear what we don’t understand. Let’s face it, money, investing, finances are complicated. That’s why financial planners and advisors exist.
On the other end of the financial money mindset spectrum are those people that embody an attitude of financial abundance. They attract money and wealth like a magnet and cash seems to just flow to them. So to speak, they see their bank account as half full rather than half empty. They’re in control over their finances and ultimately know how to make their money work for them.
So what separates the financial doers from the financial naysayers?
It really comes down to the attitude you choose to adopt around money, wealth and financial investing. A good place to start is facing your finances head on, regardless of your situation. Staying misinformed and in the dark about your financial situation will only perpetuate the scarcity mentality. Financial abundance must start with gaining a better financial understanding and empowering yourself about money. Only when you educate yourself and determine a clear plan of action surrounding your finances and money, will you feel more in control.
A Penny Saved is a Penny Earned
In today’s world consumption is also rampant and we often make big purchases and spend money impulsively without thinking. This perpetual culture of consumption that surrounds us can foster an air of entitlement too as we try to keep up with the spending habits of the status quo. We have to have the latest and greatest of everything.
We may also justify futile and unnecessary spending by telling ourselves “I work hard, therefore I deserve it.” The fact is most of the purchases we make for goods and services are probably unnecessary. Impulsive spending is also often tied to filling a void—the reward is only a temporary sense of gratification. Once the novelty of your new purchase wears off, you feel the need to spend again to fill that void. Gaining financial control involves becoming more mindful, and even a little more practical, about the way we spend money. Stepping away, and actually taking a time-out before you make a purchase, especially big ticket items, is just responsible money management. Even smaller purchases over time can add up to a hefty sum.
Put Your Money to Good Use
For example, ask yourself next time your reach for the sales rack or that bargain you can't resist, “Do I really need this?” or “How can I put this money to better use?” Take it a step further and imagine how if you invest the money you typically spend on frivolous things you don’t need but simply want, how it may better serve you in the long-run. Another important tip: Put your money to good use—focus on spending it on cultivating experiences rather than acquiring things. The memories you create on meaningful experiences generate memories that last a lifetime, adding a deeper richness to your life that is long-lasting rather than short-lived.
The Key to Wealth
According to an article published by Business Insider titled, “Why Having the Wrong Mindset is Keeping You Poor—And How to Change It,” even when people increase their earnings, they automatically increase their spending habits, making it difficult to save for retirement or a rainy day. The article offers the following important tip for financial mastery: Wealth equals what you earn minus what you spend. It’s really that simple.
Gaining Financial Control: How to Get Started
So where do you exist on the financial money mindset spectrum? If you are one of those people practicing a financial scarcity mentality and looking to change, one of the financial advisors at MacDev Financial Group can help. Our mission is to help the clients we work with one-on-one become financially empowered, thereby adopting a financial outlook of abundance rather than deprivation and scarcity. And even if you are one of those individuals who has a positive financial outlook, we can help you maximize your hard-earned dollars with our Bank on Yourself Concept, a method of financial wealth growing that will set you up for life without taking unnecessary risk. Contact 1-877-534-7266 for a consultation with one of our financial advisors today.
Disclaimer: This information is given for educational purposes only. All financial endeavors should be vetted through a financial professional; example, life insurance broker, financial planner, accountant, and/or lawyer, as the reader sees fit. MacDev Financial Group Corp, including but not limited to it’s agents, staff, associates and/or partners will not assume any liability for any information printed in this article; indirectly, or assumed.