Menu #51: How fear around money can hold you back

STATS STACK 🥞

1.8% is how much the S&P 500 dropped on March 3, 2025, marking its worst selloff of the year after President Trump announced 25% tariffs on imports from Canada and Mexico. The market downturn reflected investor fears over escalating trade tensions and potential economic fallout. (Source: Bloomberg)

$12 trillion is the forecasted level of countries' gross long-term commercial borrowing in 2025, continuing an upward trend after a dip in 2022. This aligns with S&P’s prediction of a 3% rise in sovereign bond issuance across 138 countries, pushing global long-term debt to $76.9 trillion. (Source: FT)

50% of the Chevrolet Silverado’s components are manufactured outside the U.S., making it highly vulnerable to recent tariffs, according to S&P Global Mobility data. Key parts such as transmissions, braking systems, and exhaust components come from Mexico, China, Japan, and Malaysia, potentially increasing costs due to import duties. (Source: FT)

98.3 was the U.S. consumer confidence reading in February, the lowest since August 2021, marking a sharp decline of 7 points and the third consecutive drop. The decline was broad across age and income groups, driven by economic uncertainty over new policies, while inflation expectations rose to their highest level since May 2023.

DEEP DISH 🍕

The Scarcity Mindset: How Fear Around Money Can Hold You Back

Money is more than just a tool for survival; it’s deeply tied to our emotions, beliefs, and habits. For many, the fear of not having enough—whether it’s rooted in past experiences or societal pressures—creates what’s known as a scarcity mindset. This mindset often leads to decisions and behaviors that limit our potential, not just with money but in many areas of life.

The antidote? Cultivating an abundance mindset, which shifts your focus from fear and lack to opportunity and growth. Let’s explore how a scarcity mindset holds you back, why an abundance mindset is transformative, and how you can start fostering abundance in your life.

What is a Scarcity Mindset?

A scarcity mindset is the belief that resources—money, time, opportunities—are finite and perpetually in short supply. It creates a fear-driven focus on what you lack rather than what you have or could achieve.

Signs you may be operating from a scarcity mindset:

• Constantly worrying about not having enough money, even when your financial situation is stable.

• Making decisions based on fear of losing what you already have, rather than pursuing opportunities for growth.

• Comparing yourself to others and feeling stuck in a cycle of “I can’t afford that” or “I’ll never get there.”

• Hesitating to invest in yourself or take risks, fearing it might not pay off.

While caution and careful planning have their place, a scarcity mindset often blinds you to the possibilities around you and keeps you stuck in survival mode.

How Scarcity Holds You Back

1. It Limits Your Opportunities

   When you’re consumed by fear of losing money or resources, you’re less likely to take calculated risks. Whether it’s investing in your education, starting a side hustle, or exploring new career paths, a scarcity mindset can make every opportunity feel like a threat to your stability.

2. It Breeds Stress and Anxiety

   Constantly focusing on what you don’t have creates a loop of fear and negativity. This stress often affects your decision-making, leading to poor choices like hoarding money instead of investing it or avoiding new opportunities altogether.

3. It Impacts Relationships

   A scarcity mindset can strain relationships. For example, fear of scarcity might lead to avoiding conversations about money with your partner, creating tension. It can also make you reluctant to share or help others, damaging your connections.

Shifting to an Abundance Mindset

An abundance mindset focuses on possibilities rather than limitations. It’s about recognizing that while resources may be finite, your potential to grow, learn, and create value is limitless. This shift in thinking opens doors—not just financially but in every area of life.

Why an Abundance Mindset is Life-Changing

1. It Encourages Growth and Opportunity

   With an abundance mindset, you see challenges as opportunities to grow rather than obstacles. You’re more likely to take risks, invest in yourself, and pursue goals that may seem ambitious but are entirely achievable.

2. It Improves Relationships

   When you’re not operating from a place of fear, you’re more generous—with your time, energy, and resources. This generosity strengthens your relationships, building trust and goodwill.

3. It Reduces Stress

   An abundance mindset allows you to focus on gratitude for what you have and excitement for what’s possible. This shift reduces the anxiety that comes from constantly worrying about what you lack.

4. It Leads to Better Decisions

   Operating from abundance means making choices that align with your long-term goals, rather than being reactive or fear-driven. For example, you might invest in personal development or build a financial safety net with confidence, knowing it will pay off over time.

How to Cultivate an Abundance Mindset

1. Practice Gratitude

   Start each day by acknowledging three things you’re grateful for. This simple habit trains your brain to focus on the positive rather than the negative.

2. Invest in Yourself

   Whether it’s learning a new skill, starting a passion project, or prioritizing your health, investing in yourself is a powerful way to break free from scarcity thinking. It’s a reminder that you’re worth the effort.

3. Reframe Your Beliefs About Money

   Instead of thinking, “I can’t afford this,” ask, “How can I afford this?” This shift reframes financial challenges as problems to solve, rather than insurmountable barriers.

4. Celebrate Others’ Success

   Instead of comparing yourself to others, celebrate their achievements as proof that success is possible for you too. Their wins don’t diminish your potential—they highlight what’s possible.

5. Take Small Risks

   Break free from fear by starting small. Try investing a small amount, taking on a low-stakes project, or saying “yes” to an opportunity that feels slightly outside your comfort zone. Each step builds confidence.

Final Thoughts

A scarcity mindset keeps you focused on what you don’t have, leading to fear-based decisions that limit your potential. By embracing an abundance mindset, you can break free from those limitations and unlock opportunities for growth, joy, and deeper connections with others.

This week, take a moment to reflect: Where might a scarcity mindset be holding you back? And how can you start shifting your focus to abundance?

The shift won’t happen overnight, but small, intentional changes can lead to profound transformation. Abundance isn’t just about money—it’s about how you approach life, relationships, and the belief that there’s always more to learn, achieve, and give.

Here’s to cultivating abundance in every area of your life.

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