Scarcity vs. Abundance – Why Some People Stay Stuck While Others Thrive
The following article is by Kim Potgieter, Certified Financial Planner, author and coach; who gives us some valuable insight into money management strategies that can not only provide women with independence but also help one thrive in the financial world:
What’s your first money memory? Was it a moment of plenty – perhaps receiving a crisp banknote and feeling the excitement of spending it? Or was it a moment of scarcity – hearing your parents whisper about unpaid bills or being told, “We can’t afford it”?
The money messages we absorb as children shape our financial decisions, often before we realise it. Neuroscience suggests that 95% of our beliefs are subconscious, influencing how we earn, spend, and save.
Some of us see money as a tool for opportunity, freedom, and security, while others feel like there will never be enough. Whether you see money as a tool or a source of stress has little to do with how much you have. It has everything to do with how you think about it.
Scarcity mindset vs. Abundance mindset
A scarcity mindset makes money feel like a never-ending struggle. People with this mindset tend to focus on what they don’t have, hold onto money out of fear, and believe financial security is always out of reach. Having a scarcity mindset is not about being poor – some of the wealthiest people still operate from fear-based financial habits.
By contrast, an abundance mindset shifts the focus to what’s possible. People with this mindset see money as a tool – an enabler to be managed, invested, and used to create opportunities. They trust that more money can always be made rather than fearing it will run out.
How money mindset shapes financial success
A scarcity mindset often leads to financial struggle. It can lead to:
- Hoarding rather than investing – Holding onto money tightly, fearing loss instead of seeing growth potential.
- Avoidance of financial planning – Feeling overwhelmed by financial decisions and procrastinating.
- Anxiety – Worrying about money, even when financially stable.
- Self–deprivation – Saving money out of fear, never allowing yourself to enjoy what you’ve worked for.
Scarcity can also show up as an unconscious pursuit of less. Dr. David Krueger, a renowned expert in money psychology, explains that some people maintain a comfort zone of financial struggle, even when growth opportunities exist.
It’s something I often see when talking to clients about their relationship with money. Certain behaviours come up again and again, often driven by beliefs they haven’t even realised they hold. These can include:
- Undercharging for their work or hesitating to collect money owed to them.
- Spending impulsively and returning to a familiar state of financial struggle.
- Feeling more comfortable giving money to others than spending it on themselves.
- Focusing on what could go wrong rather than what’s possible.
- Believing that poverty is somehow more virtuous than wealth.
The problem is that our beliefs act as commands to the brain. If we keep telling ourselves there’s never enough, we unconsciously make decisions that keep us stuck in that cycle.
A story of two money mindsets
My brother, Bruce, and I were raised in the same home but developed completely different money mindsets. Our father used money to control, reward, or punish, while our mother felt powerless with money, often saying, “I can’t leave because I don’t have money.”
I developed an abundance mindset and worked towards financial security and independence. Bruce saw money as control, so he rejected it completely, believing that he could avoid being controlled by avoiding money. But pushing money away didn’t give him freedom – it just left him struggling, stuck in financial stress. Avoidance wasn’t the solution. Learning to manage money on his own terms was.
The key takeaway? Scarcity doesn’t always look the same. Some people hoard money out of fear, while others reject it altogether. Either way, money still controls you until you take charge of your money story.
Rewriting your money story: Shifting from scarcity to abundance
Mindsets aren’t fixed. Just like a financial plan, your money story can be rewritten.
- Focus on what you have, not just what you lack
People with an abundance mindset naturally focus on what’s working, what’s possible, and what they have to build on. One way to train your brain for abundance is by practising gratitude.
- Each day, list three things you’re grateful for – this rewires your brain to see abundance.
- Challenge your money beliefs
- What did I learn about money growing up?
- Do I believe money is scarce or abundant?
- Do I often focus on what could go wrong rather than what’s possible?
As Dr. David Krueger explains, our beliefs shape our reality. If you tell yourself, “I’m not good with money,” you’ll make financial decisions that confirm that belief. Instead, tell yourself, “I am smart and capable.”
- Train your mind to recognise opportunities
Have you noticed that once you focus on something, you start seeing it everywhere? That’s why I love doing yearly vision boards! When we focus only on what we lack, we become blind to opportunities right before us. Make your goals visible. Look at them every day. Eventually, you’ll shift from scarcity to opportunity thinking.
- Take control of your money story
Understanding what money represents is an important step to shifting your mindset. Money is as essential as oxygen – you cannot live without it. Embrace that money’s purpose is to enable your goals and dreams. Don’t let outdated beliefs about money stand in your way of living a fulfilled life.
Moving forward
Scarcity keeps you stuck; abundance moves you forward. Your money mindset is powerful enough to shape your bank balance but also influences your confidence, relationships, and opportunities. When you believe in possibility, you step into abundance – and start making choices that create the life you truly want to live.
You can check out more from Kim Potgieter by heading over to her website, where you’ll find a wealth of resources and information on essential money management tips and conversations.