“Poverty mindset” is a term that refers to being stuck in the mentality of living paycheck-to-paycheck, or not having enough. It is also known as “lack mentality,” and it can be tough to escape this way of thinking. The good news is that you are not alone, and there are things you can do to break free from this mindset—and even gain wealth! This blog post will discuss understanding the poverty mindset, how it changes your thoughts, and what you can do about it.
What is The Poverty Mindset and how does it affect people
There are two types of poverty mindset: mental and emotional. Mental poverty is caused by your thoughts about money, while emotional poverty can be defined as the feelings you have when it comes to bills or other costs that come up. Poverty tends to change how people think in a negative way – they start believing they will never get out from under their financial burdens. The longer someone stays stuck in this type of thinking, the worse things tend to become for them financially speaking.
Understanding The Poverty Mindset and how to get rid of it!
The effects on those who live with a poverty mindset are huge and varied. Some consequences include feeling overwhelmed and helpless, not having any control over finances which can lead to depression, anxiety, shame, anger towards oneself or others around them because of debt.
How to escape The Poverty Mindset
Take control over one’s life, including finances. Make sure there is some room for fun in the monthly expenses because it can be easy to feel deprived when you are focused solely on cutting back all the time. It might also help to make long term goals that people don’t have if they earn more – retirement accounts, college funds etc. For those who live with chronic illness or disabilities this may not apply but focusing on future goals could still yield benefits even if things currently seem bleak.
Focus on happiness during today without any thoughts about what might happen tomorrow as far as money goes. Choose how much money will go towards everything in advance so that there is no wavering. If a new opportunity comes up, then go ahead and allocate more money towards it for the time being but always come back to this budget so you know what needs to be cut out if a slump hits.
Don’t feel guilty about spending on things that make people happy – such as going out with friends or family members, buying clothes etc, even though they have nothing materialistic in common with those who are richer than them. It can help create feelings of connection which may not otherwise exist when everyone has the same economic status.
Check out this interview with Rich Dad Poor Dad Author Robert Kiyosaki that goes into detail about The Poverty Mindset vs The Abundance Mindset:
Why The Poverty Mindset needs to be addressed in society
The poverty mindset has a detrimental effect on society by:
- leading to the development of false beliefs about what leads to wealth and success, such as believing that being born rich is the key. This can lead people living in poverty into making unwise decisions with their finances or not spending money at all (a phenomenon called “thriftiness”) because they believe it’s better off saving for when they are richer than they currently are. In reality, those who save consistently over time will eventually find themselves much wealthier than someone who doesn’t make saving part of their financial plan and instead spends every dollar available.
- limiting one’s vision for self-improvement based on economic class alone – an individual may feel like there is no way to advance in life because they have too little money or resources.
- lack of a safety net for when times are tough – without savings, time to prepare financially before an emergency arises, and other safeguards against risk that come from living above the poverty line, people who live below it may find themselves seeking help more often than not. This can lead them into persistent debt as cycle after cycle of hardship hits; eventually their credit score takes such a hit that they’re unable to borrow any kind of capital at all.
The consequences of a person with a Poverty Mindset
What can happen is that they see themselves as being stuck in their current economic state. They may have limiting beliefs that say
“I am not smart enough to get out of this situation”
“This is the only life I’m capable of living.”
It can be a major task to move beyond these limiting beliefs, with many people seeking out professional assistance with this. Without understanding the poverty mindset fully, any person would understandable struggle to rise above it. Read on to find out about the next steps we recommend based on our experience.
Ways to overcome the effects of a Poverty Mindset
Escaping from a poverty mindset can come by understanding how the brain and mind function differently when you are struggling with limited resources or opportunities. It can be helpful to know what happens chemically, neurologically, and psychologically when someone has an abundance mentality vs a scarcity mentality.
There are a few things that you can do to overcome the effects of the poverty mindset.
Another way could be by working on understanding why it seems as if these opportunities like education or jobs just seem out of reach for you, while others who may not appear to deserve them get them anyway. This kind of thinking can lead to feelings of bitterness which only serves to deepen this sense in feeling at the bottom rung. It might help considering looking at those so-called “privileges” with gratitude rather than resentment because they’re what will ultimately set you free from the chains even though no one deserves anything more . The next time you’re feeling your poverty mindset creep in, remind yourself that it’s just a belief-system and not the reality.
And if for some reason you still find that difficult to see through this understanding might be helpful:
Don’t believe everything you think.
You can change how thoughts affect your moods by changing what goes on inside of your head. The more negative thoughts we have, the less happy we’ll feel; while positive thinking will make us happier over time. If there are too many negative things going on at once or one thing is really bothering you, try focusing on something else instead until those feelings pass. This way when bad times come around again they won’t seem as overwhelming because these “bad” experiences become manageable.
How to identify someone who has a Poverty Mindset
They can often be easily identified by their general negativity or obvious limiting beliefs.
Sometimes you will notice them being unassertive or submissive in many situations.
They might also be the type of person who will give up easily when faced with obstacles or tough challenges.
Poverty can drastically change a person’s mindset in many ways. Whether that be becoming the victim out of circumstance or having limiting beliefs for no reason at all – living in poverty will affect how we think about ourselves and our world around us.
Taking time for Self-Care
One of the most important steps for breaking out of a poverty mindset is to take care of ourselves.
This includes healthy habits, self-love practices and time spent in nature or with loved ones when you’re able to.
It’s understandable how living in poverty can change our beliefs about ourselves and the world around us – but it doesn’t have to stay that way! It only takes one shift in perspective from negative to positive for everything to change.
Are you ready to make the changes needed to escape the poverty mindset forever?