At the height of the holiday celebrations, the loud pumping beats of a solid throwback set spewed the lyrics of legend Tupac: “My mind on my money and my money on my mind.” This often resonates deeply, as many individuals share the same view and are focused on channelling their energies toward wealth and financial freedom. However, due to traditional attitudes toward money or the lack thereof, some people have unwillingly developed debilitating attitudes and perceptions that stymie their wealth-building potential. Most of us grew up in challenging financial circumstances and/or frugal parents and developed a severe scarcity mindset from an early age. Moreover, the COVID-19 pandemic has reinforced a fear of money scarcity among those who suddenly found themselves unemployed and without income. Well, the pandemic is over, and a new year beckons, and with it comes many new possibilities and the opportunity to reset. There is no better time to improve your relationship with money and reap the benefits of embracing an abundance mindset and nurturing good financial habits.

A scarcity mindset is a psychological attitude or belief system characterised by the perception of limited resources and opportunities. Individuals who harbour this mindset tend to focus on what they lack rather than what they have, leading to feelings of inadequacy. This mindset can apply to various aspects of life, including finances, time, relationships, and opportunities. In the context of finances, someone with a scarcity mindset may constantly worry about not having enough money, fear financial loss, and hesitate to take calculated risks that could lead to greater rewards. Well, the first step is to overcome this state of mind.

Overcoming A Scarcity Mindset: “The mind is everything. What you think, you become” (Buddha), as such, overcoming a scarcity mindset will be a transformative journey that paves the way toward financial freedom. Shifting from a belief in limited resources to embracing the vast possibilities requires a conscious effort to rewrite one’s financial narrative. By acknowledging their growth potential, individuals can reshape their relationship with money. Setting clear financial goals, creating a realistic budget, and investing in financial education can contribute to developing the right mindset for financial freedom. So, for example, if you are looking to change careers, instead of thinking, “I don’t have enough transferrable skills”, or “the market is too competitive”, change those thoughts into “I have honed my skills and have years of experience in my field to stand out in the market”. Changing the belief from scarcity to abundance creates a mental framework that allows individuals to see and capitalise on opportunities, make informed decisions, and develop positive financial habits.

Is It Too Late To Start? For many late-blooming investors, the thought that seems quite common is that it is too late to start. Overcoming the perception that ‘it’s too late to save/invest’ is an empowering way to set the right tone for the new year and embark on a journey toward financial well-being. It is never too late to take control of one’s financial future. Begin by acknowledging that every step toward financial stability matters, regardless of when it is taken. Set realistic and achievable savings goals, breaking them into manageable steps to make the process less overwhelming. Embrace the power of compounding by starting to invest, even with modest amounts. Utilise available resources such as financial education platforms and advice from financial professionals to make informed decisions. By adopting a proactive mindset and taking incremental steps, you can dispel the notion that it is too late, laying the foundation for a financially successful new year filled with opportunities for growth and security.

Let Us Talk About Money: The belief that talking about money is taboo and should be kept private imposes significant limitations on one’s ability to grow financially. It is often rooted in cultural norms and societal expectations, where discussing personal finances is considered impolite or intrusive and may stem from a desire to maintain privacy and avoid potential judgments or comparisons among individuals. However, this reluctance to discuss financial matters creates a culture of silence that hinders the exchange of valuable insights, advice, and knowledge. Without open conversations about money, individuals miss the opportunity to learn from others’ experiences, gather tips on financial management, and gain insights into investment strategies. Overcoming the taboo of discussing money enables a more informed, collaborative, and supportive financial community, fostering an environment where individuals can share knowledge, learn from each other, and collectively grow toward greater financial prosperity.

Remember, an abundant mindset looks different to everyone. What looks like abundance to you might look like scarcity to someone else. However, you can learn to perceive the abundance in your life and gain financial control if you know what it takes to overcome a scarcity mindset. Firstly, self-awareness is crucial; identifying and acknowledging negative thoughts about money is the initial step. Once recognised, challenge these beliefs by questioning their validity and considering alternative perspectives. Engage in financial education to enhance your understanding of money management, investments, and budgeting. Secondly, it is never too late to start. Do not be shy, just begin where you can, and build from there. Remember, compounding is the “eighth wonder of the world”. Surround yourself with a supportive community, whether it be friends, family, or mentors, to share experiences, gain insights, and receive encouragement on your path to cultivating a healthier and more positive money mindset. Finally, schedule your most important meeting for the new year – one with a wealth advisor. Let 2024 be a year of abundance, growth, and new possibilities for you and yours.