Thinking-Rich.com

How much money do you need?

Sometimes the scarcity mindset can afflict us when we actually have more money than we realize. This feeling of “not having” naturally leads to wanting… and usually to splurging on something we don’t really need and feel bad about buying.

I’m not sure if the scarcity mindset leads to an avoidance of analyzing how much money we honestly need or if the avoidance of analysis leads to feelings of scarcity. Either way, it sucks, but there are some easy steps to take to break this cycle.

Here’s one: Grab your checkbook or your copies of last month’s bills and make a list. Don’t fight it, this isn’t as bad as it sounds. To begin, list the things that you need to stay safe and alive:

• Rent/Mortgage
• Utilities (Gas, electric, water, sewer, trash)
• Groceries
• Car payment/gasoline, oil, etc.
• Telephone
• Health
• Student loans, credit card payments – anything that would get you in trouble if you didn’t pay on time
• Insurance
• Whatever else

Add all that up and see how much you have left from your income.

You’ll notice that I didn’t have you add in cable/satellite, movies, entertaining, dining out, clothes shopping, music, hobbies and so on. You probably think that’s because I’m going to tell you to give them up if your paychecks are being stretched too thin. Wrong. Giving up things you enjoy doesn’t lead to feelings of abundance, just to more fear of scarcity and lack. Our goal in this new life is not to spend less, but to make more.

OK, back on track. Did your household income cover the things you absolutely need to stay alive? Does it cover at least some of the extras? If so, congratulations. You no longer have an excuse to feel as you don’t have enough money to get by.

If not, you need to do some soul-searching. Is there a place where some of your money is leaking away that doesn’t feel good to you? Something you’re doing or buying that’s not giving you the satisfaction you hoped it would? You have my permission to ditch it, if so. Are you or your kids involved in something because you feel you should be and not because you enjoy it? Kick it to the curb. There’s no excuse to do anything just because your friends/neighbors/co-workers/enemies are doing it. And you’ll be teaching your kids a valuable lesson in independence and diversity at the same time.

To give you an example, a co-worker of mine invested in digital cable and TiVo so she could capture every broadcast worldwide that matched her home decorating interests. After only a few months, she realized it would take most of her time outside work just to watch a quarter of those shows. Not only was this “luxury” taking a good chunk of her money, it was taking time she could have been using to create bonus wealth outside of her day job and creating anxiety because she was “wasting” that money and time.

Now, if you review your spending, have no expenses you’d feel relieved to unload, and still come up short, you know it’s a good time to start looking seriously at your employment situation and see why it’s not meeting your needs. If it’s a job you absolutely love but it doesn’t pay so hot, don’t just give it up. Consider adding a part-time job. If it’s a job you don’t absolutely love, it’s time to cast your net wider for better opportunities. Leaving a job that doesn’t meet your needs is your right. At least get up the nerve to ask for a raise significant enough to put you on the plus side after paying your bills. If you’re self-employed, take look at whether you need to pick up more clients or charge the ones you have a bit more.

I hope this post helped give you a better sense of where you stand. You need a good foundation and comfort with money to attract more of it into your life. And if you are seriously struggling with scarcity, maybe this exercise can help you see that changes need to be made and it’s not just a crappy mindset that has you stuck. You can take action, both mentally and physically.

We can overcome scarcity and achieve abundance by focusing on abundance. A great place to start is Deepak Chopra’s “Seven Spiritual Laws of Success.” Borrow it from the library, read it at least twice, then copy all the exercises on 3×5 cards or in a notebook. If you follow this book’s ideas, you will see changes for the better.

Having multiple streams of income is another solution and we’ll be delving deeply into that soon. Until then, continue thinking rich.