The Abundance of Scarcity

When does a scarcity mindset end? The scarcity in each individual who is dealing with first-world problems. The scarcity mindset that everyone has from greater to lesser degrees.

What is a Scarcity Mindset?

Scarcity, by definition, is a lack of supply, a rarity, not enough. The laws of supply and demand rest on scarcity.

A scarcity mindset is the feeling, perception, or belief of scarcity, often part of the subconscious. It may or may not rest on the actual supply or demand of something. A scarcity mindset is removed from the fact of scarcity.

Comparison of others may fuel our scarcity, when we look at what others have and feel we are lacking. Or comparison could be the cooling balm that relieves us of feeling scarcity when we consider those in other places, where they fight for a morsel of food.

We may think of someone who is a hoarder as an example of someone with a scarcity mindset. Or perhaps the person who picks up things from the trash because the item can be used for something. Or a person who is always shopping for the next bargain and purchasing what they didn’t need because it was discounted.

What about Scrooge McDuck? Does he have a scarcity mindset? How about the person who has above-average income or net worth and keeps growing it? What about the person who collects real estate? Do they come to mind when thinking of someone with a scarcity mindset? While they likely didn’t save their way to riches, they weren’t squandering their hard work and blessings either.?

Is everyone bound by a scarcity mindset??

Are we all cursed with the feeling there will never be enough?

Some have little material wealth and live with peace and joy. Do they feel scarcity? Do they just accept their lot in life? Do they not care about material things or are they just ignorant to ‘more’??

Some have much and live in fear, pain, and worry about losing what they have. Inside they are clawing, scraping and scrapping for everything, and sometimes anything because it is never enough.

Scarcity can be passed down through generations. Someone isn’t a frugal shopper by accident; they often learn it through experience. As kids, we are told that ‘money doesn’t grow on trees,’ and many other messages about waste and scarcity.

While having parents tell us as children to ‘eat what’s on our plate because children are starving on the other side of the world’ may have been well-intentioned, the results may vary. Rather than feel fortunate and abundant, it also created adults compelled to eat everything on their plate.?

What about not wasting in other ways? Why would we throw out something that someone else can use? Why would we throw money away, or leave money on the table? Is it a scarcity mindset to refrain from wastefulness, or is it good stewardship of resources?

How do we Know?

Scarcity is felt in the body. Is there a feeling when you have a forkful of food on your plate, and are not hungry, but you just can’t bear to leave it? What’s a physical response to having to throw something away that you spent good money on? Is it a tightness when you are paying more for something than you think you should be? Where do you feel it in your body??

Scarcity is revealed in the unsaid words in your head and the ones you speak. “I can’t afford it,” “I don’t know when I will get to eat here next time,” “If I wait for 6 months I can get this on sale for two dollars off.” Or the one marketers use, “Buy it now and save.”

What about time words, “I don’t have time for this,” “ I am so busy,” and “I am stressed with all the things I have to do.” “I have to…(fill in the blank).” Scarcity is about more than things and money.

What words are shining a light on, and magnifying your scarcity mindset?

How is it Serving Me and Others?

How is this Serving You: Do you feel anxious about the piles of extra stuff, or extra pounds? Fear of losing your money (whether you have a lot or a little), may be holding you back from buying the more expensive toilet paper.

Saving things “that are perfectly good,” for years, that don’t fit you can be a burden. On the other hand, something you cherish passed down from generations can lift you up… the keyword is “cherish.”?

Ask yourself if the words in your head or the words you speak serve you, and what they relate to.

How is this Affecting Others: You may be a happy miser, but the people you love the most are miserable around you because of the stress you impose through expectation.?

You may be content in your piles of papers and junk drawers, but the people you love the most feel overwhelmed by it.?

While you shouldn’t change just for the sake of others, if you are causing them pain and discomfort, are your habits of scarcity serving you?

How does this relate to Real Estate investing?

Scarcity is a critical factor in real estate investing as it can affect property values, investment returns, rental income, market competition, development opportunities, risk management, strategic decisions, and regulatory considerations. This can be linked to a ‘buyer’s market’ or ‘seller’s market’, interest rates charged by private lenders, and competitiveness in real estate (FOMO or I will never get into real estate now because the prices are too high).?

Individuals who understand and leverage the concept of scarcity can make more informed and potentially profitable investment decisions.?

This relationship between scarcity and real estate investing refers to the limited supply of land and properties compared to the demand. This can be seen when investors do not share their step-by-step strategies or keep their money partners closer.?

A few things that can help you move into less scarcity:?

Start with small things. Push past the feelings in your body. Leave a little food on your plate if that is your thing. Spend a little extra on items you would normally only buy on sale. Reduce the times you use the scarcity words… they affect you and others particularly when they are said aloud. Put something in a giveaway bag each day. Throw things out that you know you should, even with the feeling you might use it one day. Start in small ways and build a habit around the things you want to change.?

A scarcity mindset seems to be universal and is a survival mechanism gone amok. It is something we can manage through practice.?

In what ways have you reduced your scarcity mindset?