What are the Impacts of a Scarcity Mindset on Finances?

[Suba]

A scarcity mindset is a mental state in which a person focuses more on what they don't have, leading them to feel like they'll always be left behind and become more pessimistic.
This leads them to not recognize, let alone appreciate, what they do have.

A scarcity mindset can arise from past life experiences, such as a competitive environment, financial instability, etc. Scarcity mindsets not only impact thought patterns but also influence daily financial habits, such as:
1. Frequently making financial decisions based on fear.
2. Being overly cautious and deliberating for too long, leading to missed opportunities.
3. Persistent financial anxiety, etc.

 

[Augusta]

When someone operates from a scarcity mindset, they are more likely to engage in spending habits that do not support long-term financial