8 Strategies to Transform a Scarcity Mindset (2024)

30 Aug 2024

15 Jul 2024 by Susan McGarvie, Ph.D.

Scarcity mindset, also referred to as poverty mindset, is fast being recognized as a challenge to mental health and wellbeing.

Authors and thought leaders propose that an abundance mindset is key to wellbeing. This is great news in that we have agency around our mindset.

It can, however, also cause some distress for those who feel stuck and are struggling to move out of a scarcity mindset.

In this article, we’ll take a deep dive into the realities of this phenomenon and talk about what causes it and how we can support our clients to move out of a scarcity mindset and into a more positive abundance mindset.

Before you continue, we thought you might like to download our three Gratitude Exercises for free. These detailed, science-based exercises will help you or your clients connect to more positive emotions and enjoy the benefits of gratitude.

This Article Contains

Uncovering the Root Causes
6 Reasons Why an Abundance Mindset Is Better for Wellbeing
How to Transform a Scarcity Mindset: 8 Strategies
8 Worksheets Your Clients Should Try
Helpful Resources From PositivePsychology.com
A Take-Home Message
Frequently Asked Questions
References

Assessing the Scarcity Mindset & Its Impact on Mental Health

A scarcity mindset is characterized by a pervasive belief that resources, including financial, emotional, or social resources, are limited (Kalil et al., 2023). In other words, people with a scarcity mindset are often preoccupied with what they lack.

This mindset leads to chronic worry and fear that there will never be enough to meet one’s needs. It drives behaviors focused on hoarding, competition, and self-preservation (Mitsui, 2022).

Scarcity vs. abundance mindset

In contrast, an abundance mindset is the belief that there are plenty of resources and opportunities available for everyone (Geyer et al., 2023). This mindset fosters optimism, collaboration, and a focus on growth and potential.

An abundance mindset encourages people to see the world as full of possibilities. It promotes a sense of security, trust, and community, emphasizing collaboration over competition (Freebairn-Smith, 2010). Individuals with an abundance mindset are more likely to take chances, embrace change, and pursue opportunities without the constant fear of loss (Yost et al., 2019).

Converting a scarcity mindset into an abundance mindset involves recognizing and challenging our ingrained beliefs about limitation and insufficiency (Kizer & Hinueber, 2022).

It requires intentional practice, such as focusing on gratitude, setting growth-oriented goals, and surrounding oneself with positive influences (Saunders, 2015). This transformation can lead to enhanced personal and professional growth, better relationships, and a more fulfilling life.

Uncovering the Root Causes

Understanding the root causes of a scarcity mindset is important for addressing and transforming this limiting perspective.

The research is still in its infancy, but it would seem that a scarcity mindset often stems from various deep-rooted causes (Peterson, 2020).

Examples of causes include childhood experiences, societal and cultural influences, personal traumas and setbacks, and cognitive biases (Belk et al., 2023; Jiang et al., 2024).

If you’re working with clients who are struggling with a scarcity mindset, uncovering their root causes may help them understand why they think the way they do and take steps to shift toward an abundance mindset. This shift will require recognizing their ingrained beliefs, challenging them, and adopting new habits that promote a sense of abundance and possibility.

Elaine Starling provides an interesting viewpoint regarding scarcity mindset and how to pivot from scarcity to abundance in her TEDx talk below.

Abundance is a choice - Elaine Starling

4 Examples of Scarcity Trauma & Its Consequences

Scarcity trauma is a relatively new term that is being used to refer to the psychological and emotional impact caused by prolonged exposure to the real or perceived insufficiency of essential resources.

Prolonged insufficiency of financial, emotional, or social resources has been linked to the development of negative psychological effects, including scarcity thinking (Peterson, 2020).

Financial instability

Individuals who have experienced prolonged financial hardship often live in constant fear of not having enough money (Rocha et al., 2006). This can lead to chronic stress, anxiety, and a tendency to hoard resources.

People in this situation may become overly frugal, avoid taking financial risks, and experience difficulty making long-term plans due to their preoccupation with immediate survival.

Emotional deprivation

Growing up in an environment lacking emotional support can result in individuals feeling unworthy of love and connection (Huang et al., 2023). Childhood emotional neglect is a form of scarcity trauma that can lead to low self-esteem, difficulty in forming healthy relationships, and a tendency to seek validation in unhealthy ways.

Emotional deprivation may also manifest as an inability to trust others, fostering isolation and loneliness.

Career limitations

Experiencing significant job losses or career setbacks can engrain a fear of professional failure (Rocha et al., 2006). These individuals may become risk averse, avoiding opportunities for growth and innovation.

This mindset may limit career advancement and can lead to professional stagnation, further perpetuating the belief that there are limited opportunities for success.

Social isolation

Experiences of prolonged social isolation can lead to a belief that one will never belong or be accepted (Cacioppo & Hawkley, 2009). This can result in social withdrawal, heightened sensitivity to criticism, and difficulties in forming and maintaining social connections.

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6 Reasons Why an Abundance Mindset Is Better for Wellbeing

An abundance mindset, characterized by the belief that there are ample resources and opportunities available for everyone, significantly enhances overall wellbeing (Putnam‐Walkerly, 2021).

Here are several reasons why embracing an abundance mindset can lead to a healthier, happier life (Pavlov & Lunov, 2023).

Reduced stress and anxiety

An abundance mindset alleviates the constant fear of lack. When individuals believe that there is enough to go around, they experience less stress and anxiety about their future. This leads to a more relaxed and positive outlook on life, fostering mental peace and stability (Schroder et al. 2017).

Improved relationships

People with an abundance mindset are more likely to trust others and engage in collaborative, supportive relationships (Yost et al., 2019).

They may be generous with their time and resources, which can strengthen personal and professional connections. This trust and collaboration may create a sense of community and belonging, enhancing emotional wellbeing.

Enhanced creativity and problem-solving

An abundance mindset encourages individuals to see challenges as opportunities for growth rather than threats (Gale et al., 2021). This perspective may foster creativity and innovation, as people feel more confident in exploring new ideas and solutions without the fear of failure.

Greater happiness and satisfaction

Focusing on what one has rather than what one lacks cultivates gratitude and contentment (Nath, 2024). An abundance mindset shifts attention to the positive aspects of life, leading to higher levels of happiness and life satisfaction.

Increased resilience and adaptability

Believing in abundant opportunities allows individuals to bounce back more effectively from setbacks (Nath, 2024; Pavlov & Lunov, 2023). They are more likely to view failures as learning experiences and are better equipped to adapt to changing circ*mstances, which strengthens their resilience.

Higher levels of success

An abundance mindset encourages embracing opportunities and taking calculated risks. This proactive approach leads to greater achievements and success in both personal and professional endeavors (Nath, 2024).

Overall, an abundance mindset promotes a healthier, more positive, and more fulfilling life (Pavlov & Lunov, 2023). It shifts focus from scarcity and competition to growth, gratitude, and collaboration, significantly enhancing overall wellbeing (Zhao et al., 2021).

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How to Transform a Scarcity Mindset: 8 Strategies

Transforming a scarcity mindset into an abundance mindset requires intentional effort and consistent practice (Nath, 2024).

Here are several strategies to facilitate this shift.

Practice gratitude

Focus on what you have rather than what you lack by starting a daily gratitude practice. Listing things you are thankful for can shift your perspective from scarcity to abundance (Emmons, 2013).

Reframe negative thoughts

Challenge and reframe negative thoughts that stem from scarcity thinking. Use realistic perspectives and replace negative thoughts with positive affirmations. For example, instead of thinking, “I’ll never have enough,” try, “I have the resources to create opportunities.”

Surround yourself with positivity

Build a supportive network of friends, family, and mentors who embody an abundance mindset. Engage with people who inspire and encourage you to think positively and expansively.

Invest in personal growth

Continuously invest in your professional and personal development. Attend workshops, read mental health books, and engage in activities that promote growth and learning. This fosters a belief in endless possibilities.

Give back

Engage in acts of kindness and generosity. Helping others reinforces the belief that there is enough for everyone and fosters a sense of community and connection.

Practice mindfulness and meditation

Mindfulness and meditation help you stay present and reduce anxiety about the future (Hofmann & Gomez, 2017). These practices encourage a balanced perspective, making it easier to recognize and appreciate abundance.

Limit exposure to negative influences

Be mindful of the media and social influences you consume. Search for positive and uplifting media content and reduce exposure to media that promotes scarcity thinking.

Seek professional help

If you find it challenging to shift your mindset on your own, consider seeking help from a therapist or counselor specializing in cognitive behavioral therapy or positive psychology.

By implementing strategies such as these, a scarcity mindset can be transformed into an abundance mindset, leading to greater wellbeing, success, and fulfillment.

8 Worksheets Your Clients Should Try

Transforming a scarcity mindset into an abundance mindset can be significantly aided by structured exercises and worksheets.

Here are several worksheets that can help individuals make this critical shift.

Gratitude journal

A daily gratitude journal helps clients focus on what they have rather than what they lack. The Gratitude Journal Worksheet is a helpful prompt that will support your clients to identify things that they’re grateful for and mitigate the obstacles to their gratitude and opportunity for a more abundant mindset.

Designing affirmations

This worksheet guides clients in designing and using positive affirmations to combat negative thoughts. It provides a step-by-step approach to designing meaningful, positive affirmations.

Mindfulness

Guided mindfulness exercises help clients stay present and reduce anxiety about the future (Hofmann & Gomez, 2017). These exercises promote a balanced perspective, making it easier to recognize and appreciate abundance. There are several mindfulness-based worksheets that can help clients move out of a scarcity mindset and toward an abundance mindset.

The Struggle or Acceptance worksheet, for example, is an acceptance and commitment therapy worksheet that aims to help clients accept what lies beyond their control and commit to life-enhancing actions instead. This can be applied to the relationship that they have with their beliefs and feelings regarding scarcity and abundance.

Negative thought reframing

Clients can use this Negative Thoughts Checklist to identify and reframe negative thoughts that stem from scarcity thinking. It provides a structured way to challenge and replace these thoughts with positive, realistic ones.

Self-compassion

Recognizing a scarcity mindset in ourselves may elicit feelings of shame, and your clients may need help to address this in order to move forward and start working on developing an abundance mindset. The Letter of Self-Compassion Worksheet can be a helpful tool here, as it will prompt them to be more forgiving and refocus their thinking on being more accepting, caring, and supportive of themselves and others.

Personal growth tracker

Help your clients create a log to track their personal and professional development activities. This worksheet helps clients focus on continuous growth and learning, which are key components of an abundance mindset.

Growth mindset

The Adopt a Growth Mindset worksheet will help your clients identify opportunities to shift from a fixed mindset to a growth mindset.

Positive media log

Encourage your clients to create a tracker sheet to monitor and choose positive media and influences. Clients list the books, podcasts, and other media that uplift and inspire them, promoting a positive outlook.

These worksheets can be powerful tools for clients seeking to shift from a scarcity to an abundance mindset, enhancing their overall wellbeing and success.

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Helpful Resources From PositivePsychology.com

Positive psychology has a strong focus on growth and abundance mindsets (Wong & Roy, 2017). It is no wonder that many of the PositivePsychology.com resources can be used to help you and your clients shift toward a positive mindset.

We suggest you start with some additional reading in the form of this related article: What Is Gratitude and Why Is It So Important? This article will help you further understand why gratitude plays such an important role in positive psychology, and you’ll easily see the link to an abundance mindset and how the gratitude practice we talked about above would be helpful.

Two other articles that are highly recommended are How to Nurture a Growth Mindset in Kids, as well as our article offering 18 Best Growth Mindset Activities, Worksheets, and Questions.

You may then want to look at some of our more in-depth offerings in the form of our Positive Psychology Toolkit©, which will give you access to all the tools above and 500 more.

Or perhaps you’d like to opt for a masterclass, in which case we’d suggest you take a look at the Maximizing Strengths Masterclass©. This masterclass provides a comprehensive six-module coaching package. You’ll learn skills that will empower you to help your clients realize their unique potential, do what energizes them, feel authentic, and move toward an abundance mindset.

If you’re looking for more science-based ways to help others harness the benefits of gratitude, check out this collection of 17 validated gratitude tools for practitioners. Use them to help others shift to a more positive mindset and experience the joys of life more deeply.

A Take-Home Message

Transforming a scarcity mindset into an abundance mindset is a powerful way to improve mental health and overall wellbeing. By understanding the root causes of scarcity thinking and implementing strategies to foster an abundance mindset, you can help reduce stress, enhance clients’ relationships, and encourage them to achieve greater success and satisfaction in life.

Help your clients embrace the journey toward abundance, knowing that a mindset shift will open doors to new opportunities and a richer, more meaningful existence. You can use the provided worksheets and resources to further support their transformation, leading to a fulfilling and balanced life.

Remember, the key to abundance lies within your perspective and the intentional steps you take toward a more positive and expansive outlook.

We hope you enjoyed reading this article. Don’t forget to download our three Gratitude Exercises for free.

Frequently Asked Questions

What are 3 characteristics of a scarcity mindset?

Three characteristics of a scarcity mindset are a constant focus on what one lacks, heightened anxiety and stress about resources, and a tendency to hoard or compete for resources. These behaviors stem from the pervasive belief that there is never enough to go around, leading to a perpetual state of fear and insecurity.

What are other mindsets similar to the scarcity mindset?

Other mindsets similar to a scarcity mindset include a fixed mindset and a fear-based mindset. A fixed mindset involves believing that abilities and intelligence are static and unchangeable, while a fear-based mindset is characterized by making decisions driven by fear and caution, often due to a perceived lack of security or resources.

Is having a scarcity mindset bad?

Having a scarcity mindset can limit opportunities and lead to a fear-driven approach to life, often preventing growth and innovation. It’s generally considered less productive than an abundance mindset, which focuses on possibilities, resourcefulness, and a positive outlook.

Can a scarcity mindset be passed down to future generations?

A scarcity mindset can be passed down through learned behaviors and beliefs within families, impacting how future generations perceive and approach opportunities and resources. Overcoming this often requires intentional efforts to promote abundance thinking and resilience in subsequent generations.

References

Belk, R. W., Das, G., & Jain, S. O. (2023). The ubiquity of scarcity. Journal of the Academy of Marketing Science, 51(6), 1191–1196. https://doi.org/10.1007/s11747-023-00984-w
Cacioppo, J. T., & Hawkley, L. C. (2009). Perceived social isolation and cognition. Trends in Cognitive Sciences, 13(10), 447–454. https://doi.org/10.1016%2Fj.tics.2009.06.005
Emmons, R. A. (2013). Gratitude works! A 21-day program for creating emotional prosperity. John Wiley & Sons. https://www.amazon.co.za/dp/1119178665/
Freebairn-Smith, L. (2023). Abundance leaders: Creating energy, joy, and productivity in an unsettled world. John Wiley & Sons. https://www.amazon.co.za/dp/1394178492/
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About the author

Susan McGarvie, Ph.D., is a writer, researcher, and therapist in private practice. With more than twenty years' experience working in the health and NPO sectors, her research, writing, and work have focused on supporting practitioners to better manage stress and create a balanced sense of wellbeing.

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