Money and mindset go together like Jay and Bey. Having an Empire State of Mind can have you dreaming big and making even bigger moves. This mindset has been the secret sauce among many of today’s best and brightest billionaires (yes, people with a net worth that start with a B). But, people aren’t just born with this type of mindset. It’s something that you need to werk werk werk werk werk on. Believe it or not - it’s often developed after living in scarcity and realizing there is enough, and you are enough. 

Types of Money Mindsets 

TLDR: two common money mindsets are scarcity and abundance. 

The concept of a ‘scarcity’ mindset gained traction when Stephen Covey released the book “The 7 Habits of Highly Effective People.” In his work, he identified a common underlying theme within this mindset where people believe wealth and opportunities are numbered along with the fear of never having enough. These are deeply rooted fears tied to the belief that no matter how hard you work or how much money you make, it just won’t be enough. 

Raise your hand if you’ve ever felt like that! *guilty*

This type of mindset can show up in a number of places, including your business. And when it shows up it SHOWS OUT in more ways than one.

Ways Scarcity Shows Up in your Biz

That pressure in your chest when your competitor launches a new offer? Or, how about that feeling of your heart dropping to your stomach when you realize you have no money coming in this week? That’s your scarcity mindset showing up. 

It’s that mindset that could be guiding your business decisions from a place of emotion instead of cold hard strategy. These are just some of the ways your scarcity could be leading you down a less than yellow brick road:

A scarcity mindset affects how you price your products and services. When you truly believe there are a finite number of opportunities for wealth and growth, you’ll do whatever it takes to seize them all at any expense. That could look like lowering the cost of your products and services to out-price the competition.

The truth: You may be acquiring more customers, but you’re operating unsustainably with a lower profit margin. You may end up with a one-way ticket on a race to the bottom with nothing but burnout at the end. 

A scarcity mindset impacts how you deal with adversity in your business. Your path to business growth won’t be linear. If it is - fist bump! You might be a unicorn. But chances are some unexpected expenses will come up for you, or you’ll encounter some slower seasons with reduced (or no) revenue coming in. Instead of looking for new opportunities to build wealth, improve upon your processes or connect with your customers, your scarcity mindset will leave you in a panic. 

The truth: being in business is a marathon, not a race. Properly accounting (get it?!) for the unexpected can give you some degree of control and alleviate the pressure that can come with slower revenue months.

A scarcity mindset dictates how you save and spend money. You may be saving every possible penny because you truly believe your revenue may just come to a halt one day. But, this mindset also prevents you from spending money on things that matter in the long run - like outsourcing, upgrading equipment, and investing in your future business growth. 

The truth: sometimes you’ll need to spend a little to make a little more - a little more money or a little more time. 

That’s just the way it is  things will never be the same (for good)

Changing your relationship must come from a place of understanding. Yes, gaining a deep understanding of the financial health of your business, but also understanding that it’s OK to make some changes. Here are 3 steps to transforming your money mindset to one of abundance and reaping allllll the benefits that come with it!

1. Write down your current limiting beliefs or fears about money and hold them accountable. Writing them down helps you acknowledge that these beliefs are separate from you and that they simply aren't true. Now put that thang down, flip it and reverse it! How do you wanna feel instead? Lean into that abundance. 

2. Identify what you want, what you really, really want. Have you ever actually calculated how much money you need for the things you want? Or, are you just guessing based on what the Jones’ have? Spoiler alert: the Jones’ can’t even keep up with the Jones’ anymore.

   Having clarity on your financial needs can help alleviate the stress of trying to bring home all the bacon. Chances are you’re stressing yourself out over nadda.

3. Learn how to master your biz finances with my virtual bookkeeping bootcamp. Nobody knows you better than YOU. That’s why it’s never been more important to get to the heart of your business finances so you can confidently operate from a place of abundance. Ready to have confidence in your bize finances? Join the next round of Bookkeeping Bootcamp. Learn more here.