Reading through some recent bank and credit card statements, for example, can give you a better sense of where your money goes each month and where you might be able to cut back on spending. Though anxiety feels awful, it can be a productive emotion that spurs you into action. Unless you’re reading this from a lounge chair on your new superyacht, it probably wasn’t you. Cryptocurrency is going to look a lot better.” But cryptocurrency may or may not be a good fit for your overall financial picture, and only one lucky person won that billion-dollar payout. “The lottery’s going to look a lot better. “Every product you see out there is a potential solution for you,” says George Blount, founder of nBalance Financial, a financial therapy and wellness practice in Boston. You may even make ineffective or risky moves to try to lock in some wins. When you’re anxious about the short term, it’s hard to plan a few years - or even months - ahead. Or you could take the opposite approach, spending money like there’s no tomorrow because you worry items you need will disappear from stores. The ongoing stress can cause you to hold onto cash in a savings account because you’re afraid to invest, potentially limiting your ability to grow your net worth over time. “That’s kind of a vigilant standpoint, and that’s a very difficult standpoint to enjoy life from.” “You can imagine it’s not a very pleasant place to be, to be kind of on guard, thinking that you’ve got to keep everything that you have, that you’re going to lose it in some way,” says Susan Greenhalgh, an accredited financial counselor and founder of Mind Your Money LLC in Providence, Rhode Island. “Everyone who’s here had an ancestor who benefited from a scarcity mindset.”īut when a scarcity mindset isn’t rooted in a real need to avoid hungry lions or preserve a season’s worth of food without refrigeration, it can work against you, persuading you to make financial choices that aren’t actually in your best interest. “It helped humans survive back in the day when we faced existential threats from nature,” says Courtney Cardin, co-founder of Aura Finance, a financial wellness and investment platform that’s currently in the private testing phase. And when you’re concerned about access to these things, it’s natural to want to grab onto whatever you can.Īt times, this impulse is useful. This basically means you view your resources - like money, food and employment opportunities - as limited. If the current situation has you avoiding any long-term planning or fearing spending any money, even on things you need, you’re experiencing a scarcity mindset. We’ve simply rolled one set of worries into another, continuing to assume all our resources are scarce, whether that’s true for us or not. Today, this fear of scarcity plays out differently, due to rising prices, a volatile stock market and whispers of a looming recession. We felt out of control, so we controlled what we could: the contents of our kitchens and bathroom cabinets. We hid in our homes, deep-cleaning every surface, occasionally braving the threat of COVID-19 to hunt down the last remaining bottle of hand sanitizer in a 50-mile radius. The shelves, once brimming with toilet paper and hand soap, were bare.
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