Cause
Rather than proudly don a (non-Hawthorne) Scarlet A, I shamefully cloaked myself with the lamentable Crimson S. Admittedly, today’s message is a little more “Why and How-To” than my usual messages due to my prior unhealthy relationship with the issue.
Scarcity and abundance exist in every situation; our perspective decides which prevails and directs our actions.
Our survival instinct and fear encourage an inclination towards scarcity. While we are no longer primitive hunters and gatherers, we must secure and steward resources to meet today’s and tomorrow’s needs. We focus on what we lack and fear losing what we have under the belief we cannot recover anything lost or obtain more. Note the similar spelling of “scarcity” and “scared.”
Scarcity impairs joy and accomplishment by making you think small, settling for getting by instead of prospering. The abundant mindset sees promise in every situation, confidently contemplates positive results, and is rewarded with more favorable outcomes.
Effect
Instead of preserving resources, scarcity attracts loss by discouraging investment. For example, you purchase a cheap dishwasher with a higher cost of ownership because it requires more repairs and replacement sooner than a higher-quality one. You only buy government bonds to avoid principal loss and forgo the higher returns provided by a diversified portfolio.
Scarcity deprives you of pleasure by equating expenditure with loss. When you splurge for a hotel room with a balcony, do thoughts of the extra money spent prevent you from enjoying the fresh air and brilliant view? Even worse, regret reinforces the scarcity mentality. “I didn’t enjoy it; I shouldn’t have spent the money, and I won’t do it again.”
Scarcity makes you reluctant to invest in a relationship, fearing that what you give is merely expended instead of invested. Was your unrequited love a tepid overture recognized and responded to for what it was? You cannot reap what you do not sow.
Scarcity blinds you to opportunity in situations of apparent loss. When you plan dinner with a friend, eagerly anticipating her undivided attention, are you disappointed when she invites someone to join you? Do you fixate on diminished companionship and fail to consider what the “interloper” might add?
Investments in value, even if lost, are not wasted. You do not risk your current position to pursue a promotion, a different career, or an entrepreneurial venture and deny yourself the growth and reward those endeavors could provide. Abundant thinkers understand the new endeavor might not yield the desired outcome, but the ultimate result is superior to remaining in place.
What to do?
The objective is not to eradicate scarcity thinking (impossible) but to restrict it to its rightful purpose. There will be rainy days, possible retirement, and thieves of your time and energy. Scarcity can make us prudent stewards of our resources.
We can first lower our tendency towards scarcity by appreciating what we have. When we dwell on what we do not have, we become even more protective of what little we perceive we have.
The mindset change begins by recognizing when scarcity arises. When presented with an opportunity, do you first or primarily consider the potential for loss? You counteract scarcity by contemplating how the choice could produce a successful result and its attendant reward.
You can also adopt a “burn the boats” mentality and invest at a level that demands abundance by requiring the utilization of your untapped potential. Perhaps you buy a home in a better school district that compels you to advance your career and income.
Finally, completely accept your investment decisions, emotionally release the resources, and enjoy the balcony.
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We can remove scarcity’s limitations on our enjoyment and accomplishments by shifting our mindset from miserly preservation to gratitude and the probability of gain.