You Can Move From a Scarcity Mindset to an Abundance Mindset.

Are you constantly worried about not having enough money? Are you afraid to spend money on things you want or need? This feeling of lack or limitation is known as a scarcity mindset, and it can seriously undermine your finances. The good news is that you can develop an abundance mindset instead: this involves focusing on everything you have, rather than what you don’t have. Once you accept the idea that you can achieve financial security in your life, you will be able to make better financial decisions. Here’s how you can escape the scarcity trap and have a healthier relationship with money.

Heal your past relationship with money.

In many ways, budgeting is only scratching the surface. It’s hard to stick to a budget when there’s an unresolved emotional root to your money problems.

Your relationship with finances runs deep: it is never easy to be “good” or “bad” with money. The first place to start is to define your relationship with money. Ask yourself: How did you handle finances as a child and how did you feel about money once you became independent? You may have a lifelong scarcity mindset that will take serious work to untangle. The key is that in order to change the narrative, you need to better understand what it looks like now. To learn more, check out these steps to start healing your relationship with money.

Spend consciously

Give yourself permission to spend money on priorities and things you truly enjoy. Spending money aligns with an abundance mentality if done consciously. Notice how it adds value to your life.

Forming a healthy relationship with money means thoughtfully indulging in it. Ask yourself: “How do I expect this purchase to make me feel? How do I want this to make me feel? What feelings am I trying to avoid by buying it? Allow yourself to be pampered, especially if those indulgences will improve your overall relationship with money.

You can’t avoid spending money at all, so learn to do it without shame (the same shame that only keeps scarcity thinking in check). Here are some more specific tips to help you become a conscious spender .

Overcome your fear of debt

Of course, debt is a scary word. But not all debt is created equal , and the general fear of debt is holding you back from achieving an abundance mindset.

If you want to buy a house or a car or make any big financial move, you’ll probably need to get used to debt. And if you’re borrowing money against an asset that will generate returns in the long term (like a real estate investment or small business), your debt can significantly improve your finances. Here’s our guide to getting organized and getting out of debt .

Celebrate small victories

Celebrate any financial success. Did you stick to your budget or save a little more this month? Pay with a credit card? Instead of minimizing achievements, recognize and reward them. Small victories add up, and you may find that your finances aren’t as bad as you think .

Stop comparing yourself to others

Everyone has their own story. It’s no use comparing yourself to a friend who has an affluent generation or a sibling who has a better-paying job. The only thing you can do is focus on what is under your control. In practical terms, this means setting a budget and sticking to it . But in a deeper sense, it means focusing on your paper and moving from a scarcity mindset to an abundance mindset.

If your relationship with money is weighing you down, something needs to change. Consider finding a financial therapist . Financial therapy combines financial counseling with psychoanalysis, giving you the opportunity to remove emotional or behavioral barriers to your financial well-being.

Ultimately, these tips for moving from scarcity to abundance aren’t just about making you feel better. Your approach to money is the key to creating wealth. When you make sure that you only spend money on things you like, rather than spending money on things you don’t like, you will make much better financial decisions for yourself.