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What causes a scarcity mindset?
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Jump to section
What causes a scarcity mindset?
How does a scarcity mindset affect your behavior?
Scarcity mindset versus abundance mindset
A “can-do attitude” helps you jump out of bed full of self-confidence, empowered to tackle the day’s challenges and overcome the roadblocks that come your way.
A “can’t do attitude” is a term you might not use as frequently. You work hard — whether through coaching, therapy, or other personal development projects — to face life’s challenges and celebrate wins. But no matter how hard you try to overcome defeating situations, your mindset might hold you back.
Feeling like you can’t achieve the things you want to is also known as a scarcity mindset. This highlights the resources and things you don’t have instead of those you do, which can cause you to lose confidence and doubt your success. Recognizing and overcoming this mindset can help you approach problems with optimism, practice gratitude for what you have, and start saying “can” instead of “can’t.”
The first question is: what is scarcity? The term, hailing from economics, refers to what happens when a person or community has access to a limited amount of resources. When there isn’t enough of something — like money or water — economic systems naturally attribute more value to those things.
The scarcity mindset, or scarcity mentality, describes what happens when individuals focus heavily on their lack of resources, whether that concerns financial hardship, time, or even love. Someone with a scarcity mindset will try to conserve what they have, sometimes in extreme ways, which can reduce their mental bandwidth and lead to further hardship, according to Princeton psychologist Eldar Shafir in an article from the American Psychological Association (APA).
Social issues such as unemployment and systemic hunger can lead to a scarcity mindset, so fears around limited resources aren’t unfounded, especially for those in precarious situations. If you struggle to make ends meet, don’t have access to healthcare, or lack time in the day to practice self-care, you may become cautious with the resources you have.
Similarly, when people feel their needs are in danger, they risk developing a scarcity mindset. The instability, anxiety, and fear associated with potentially not being able to meet basic needs can push people to obsess over resource access. This might not be an actual danger or actual lack; the worry itself can cause a scarcity mindset.
Imagine you lose your job and decide to go back to school for a master’s degree. Later, you apply to dozens of positions with your improved resume. At first, you’re hopeful. But as rejections pour in, you start to stress. You think, “What if I never find a job?” That thought is the groundwork for a scarcity mindset. Instead of believing you’re having a spot of bad luck, you decide that there are limited opportunities and feel pessimistic about your chances.
The scarcity mindset perpetuates a negative outlook, encouraging you to focus on what you lack instead of setting goals to overcome the things you’re going through. These automatic negative thoughts can create a chain reaction of self-victimization, low self-esteem, and undesirable emotions like frustration and defeatism.
Here are more ways it can manifest:
When your mind circles the negative thought of not having enough, you might have less time and attention for other aspects of their existence. A cognitive version of “tunnel vision,” tunneling causes you to focus only on primary information about the task at hand and ignore secondary or unrelated information.
If you want to get out of debt, maybe you cut expenses drastically. You turn down opportunities to hang out with friends because you don’t want to spend even minimally on an outing. In time, this tunneling effect could cause you to neglect these relationships overall, causing friction and losing connections.
In other cases, you might narrow in so closely on protecting one interest, like your financial wellness, that all your energy goes into it. Then, you don’t have the bandwidth to pursue other goals, be present for others, or even take care of your mental health. Instead of climbing out of that all-or-nothing mindset, you dig yourself deeper and lose the extra resources you need to improve.
According to the above APA article, a study on decision-making with a scarcity mindset turned the process into the game. In the study, a computer program classified participants as “rich” or “poor,” with the rich having more time and the poor having less. Those “rich” in time had more seconds to answer questions than those who lacked this resource. Correct answers earned “money” in the game.
The students who were scarce on time and felt hurried to answer questions took more risky “loans” than their peers who could think over their decisions — causing them to lose the game. Apply this example to real life, and you can see how a scarcity complex around money could push someone to make risky financial decisions, like taking a disadvantageous loan. The logic also explains why someone might jump at an unsatisfying job opportunity to squash the fear of being out of work.
Research in the journal Social Cognitive and Affective Neuroscience shows that a scarcity mindset can diminish empathy for others. In this study, participants with a scarcity mentality were less likely to understand others’ pain, both at the beginning and end of empathetic processing.
The results showed that in making hasty choices, people with scarcity mindsets sometimes disregard moral norms and put their own needs and feelings over others’. Scarcity fears may also drive people to hoard resources — refusing to share or becoming increasingly self-centered in a way that further prevents empathy.
Love and attention are resources, and all human beings need them, meaning that people can also experience scarcity in this area. Those who worry that there isn’t enough love to go around or who feel they don’t receive enough attention may hold on tightly to these sensations, constantly afraid they’ll lose someone’s affection.
In the worst cases, that tight hold can manifest in jealousy or paranoia, like wondering where a partner is at all times. The scarcity mindset can also spur competitiveness if you believe there’s a limited amount of love or affection and you must constantly fight to have it. You may even withhold attention from others to protect your own feelings.
These behaviors can turn into self-fulfilling prophecies. In hyper-focusing on abandonment to the point of paranoia or jealousy, you may push people away instead of starting healthy conversations about your dynamics, causing further rifts.
Scarcity and abundance are natural opposites, as are the mindsets associated with these terms. The scarcity mindset focuses on what’s lacking, and the abundance mentality appreciates how much is available. People who believe in abundance believe there are enough resources for everyone — including themselves.
One of the critical differences between abundance versus scarcity mindsets is that people who focus on abundance can more readily practice gratitude. They’re less likely to cling to their resources or compete for them, and they can celebrate others’ wins without seeing them as threats. And, similarly to a millionaire mindset and beginner’s mindset, abundant people look forward to learning new things. People with scarcity mindsets instead often have a hard time growing on a personal level and appreciating what they already have.
While temporary scarcity might give you the motivation to save money or drive your energy toward a job search, the consistent effects of this mentality are often damaging. If you note some of the feelings or behaviors of this fixed mindset in yourself, start reflecting and changing your behavior now. An abundance mindset is possible, even when experiencing scarcity in your life.
Here are a few ways to shift away from a scarcity mindset:
Practicing gratitude means giving thanks for what you have rather than focusing on what you don’t. This can be a challenging task when you’re stressed about lacking resources, but try to establish the healthy habit of gratitude journaling.
Write down a few things you’re grateful for each day, pinpointing tangible and intangible sources of joy. These can include anything from a positive interaction with a coworker or the safe and happy living space you have.
If an automatic negative thought paints your situation as dire, question that instinct. Try to replace the idea with a positive one. If you get rejected from two jobs and believe you won’t get the third, ask yourself whether that thought is rational. Maybe there were thousands of applicants who were also qualified — that doesn’t take away from your talent. Focus your mind and behaviors instead on preparing for the interview and visualizing a positive outcome.
Negative attitudes can be contagious. If you’re prone to focusing on scarcity, limit discussions on the subject with friends and loved ones who feel the same way. Saying, “My partner is probably going to abandon me,” and hearing a friend echo this concern makes it feel more real, even if it isn’t true.
Surround yourself with positive, abundance-focused people who appreciate what they have and feel hopeful for the future. If becoming more optimistic is a goal for you, share it with the people around you so they know to support positivity and question negativity.
If your scarcity fears center on economic resources, managing your finances well can bring comfort. If possible, start a savings account, retirement fund, or investment portfolio. Work with a financial coach or advisor to plan savvy savings tactics and avoid any risky loans or investments that could worsen your situation.
Remember that hoarding won’t help you break the scarcity mindset cycle. This process is about balance. Avoid drastic spending cuts that could affect your well-being. Don’t miss your best friend’s wedding because you didn’t want to pay for a flight or skip an important doctor’s appointment because the copay is high. If you can afford it, doing things that contribute to your holistic wellness are worth it.
Trained mental health professionals can help you work through your scarcity mindset and unpack the experiences and traumas that led you to feel this way. Therapists can give you recommendations on how to lessen the emotional effects of scarcity and build mental strength.
A life coach can also help you adjust your mindset through active goal-setting. With a coach, you’ll become more self-aware, recognize your habits, and decide on an action plan toward abundance. Just remember that if you’re experiencing a mental health challenge, approach coaching along with therapy to see the benefits.
If possible, share what you have with others. This can foster a greater sense of abundance because it reminds you that even when resources are limited, people are always willing to help. Try making a regular donation to a food bank, dedicating time to a social cause, or starting conversations about the potential effects of scarcity in your community. These activities can both fulfill you and remind you of the support you have.
There’s nothing wrong with saving money, making the most of your time, and being realistic about the future. But when these instincts turn into an excessive focus on what you don’t have, this mindset can do more harm than good.
If you feel you’ve developed a scarcity mindset, take the time to unpack your feelings and work toward a life of abundance. You might realize you do have enough money or enough time to reach your goals. With a growth mindset, you’ll feel more profound gratitude for what you have, a stronger connection to your community, and a greater sense of stability. And once you reach that stage, you can share what you have.
That being said, recognize that your emotions and experiences are valid, and letting go of them can take time and proper guidance. Reach out to a therapist or start working with a coach if you need further support. There’s nothing wrong with seeking help.
Make meaningful changes and become the best version of yourself. BetterUp's professional Coaches are here to support your personal growth journey.
Make meaningful changes and become the best version of yourself. BetterUp's professional Coaches are here to support your personal growth journey.
Elizabeth Perry is a Coach Community Manager at BetterUp. She uses strategic engagement strategies to cultivate a learning community across a global network of Coaches through in-person and virtual experiences, technology-enabled platforms, and strategic coaching industry partnerships.
With over 3 years of coaching experience and a certification in transformative leadership and life coaching from Sofia University, Elizabeth leverages transpersonal psychology expertise to help coaches and clients gain awareness of their behavioral and thought patterns, discover their purpose and passions, and elevate their potential. She is a lifelong student of psychology, personal growth, and human potential as well as an ICF-certified ACC transpersonal life and leadership Coach.
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