Scarcity: Real or Just a Mindset?
The Problem With How We Talk About Scarcity
In the last post (click here to read), we took a critical look at the current definition of abundance, deconstructed what the word actually means, and considered an alternative definition of abundance that is more accurate and better aligned with human thriving.
In this post, let’s consider the word on the opposite side of the coin: scarcity. Let’s dive into how this word has been (mis)used, how this misuse contributes to confusion and harm, and root ourselves into a more accurate definition of scarcity.
The Misuse of Scarcity in Money Mindset Culture
As someone who works in the intersection of self help and personal finance, it’s my opinion that scarcity has come to be used almost exclusively to describe scarcity mindset. But here’s the problem: scarcity is NOT just a mindset.
There must be caution around ascribing everything to a scarcity mindset, because this can inadvertently be a way of dismissing and/or denying many people’s very real lived experience.
Why “Scarcity Mindset” Advice Falls Short
I have watched in horror as self-help/money mindset coaches have responded to concerns like:
“I have over $50,000 in credit card debt and I don’t make enough to cover my monthly expenses – what should I do?”
with trite platitudes like:
“Hun, you need to work on your money mindset. You must have beliefs that are blocking money from coming to you.”
This kind of advice wrongly places the sole responsibility on the individual, while ignoring systemic and structural realities.
Looking at Scarcity Through a Systemic Lens
While personal responsibility matters, none of us lives in a vacuum. We live in a society, and that society determines much about what financial choices are even available to us.
Most of the people I’ve worked with are struggling financially not because they’re “bad with money.” They’re struggling because they have not been given a real opportunity to be financially successful. Scarcity is NOT just a mindset — and it is NOT simply an individual person’s fault.
Why Mindset Alone Isn’t Enough
“Change your mindset, change your life” advice can sometimes distract from the importance of taking real, grounded action.
Long-term financial change requires both:
Mindset work: beliefs, stories, and emotional processing.
Action steps: practical decisions and new behaviors.
It’s both/and — not either/or.
Real Scarcity vs. Scarcity Mindset
My final critique of using the phrase scarcity mindset is that it is often misused to describe situations that aren’t actually mindset-related.
There is such a thing as real scarcity. When someone doesn’t have enough money to cover their living expenses, that is not mindset. That is scarcity in its literal definition: not having enough.
Recognizing the difference between real scarcity and a scarcity mindset changes everything about how we respond.
Why Accurate Definitions of Scarcity Matter
Having and using accurate definitions of abundance and scarcity is vital for those of us working in personal finance and self-help. Misusing these terms leads to ineffective support and missed opportunities for meaningful change.
If you are interested in working with a financial therapist who is reclaiming terms like abundance and scarcity — and committed to understanding your situation as accurately as possible — I would love to connect with you.
Click here to schedule a free, no-pressure consultation call.
