A title loan in Wisconsin can get you over a financial hump, but once the emergency has passed, you might want to do some introspection and see whether you possess a negative money mindset rooted in scarcity and shame. 

While such a negativity bias was useful when we were fleeing wild lions, it can hamstring you nowadays. Why? Because scarcity is an extension of such bias.

It’s the belief that we must hoard resources since there aren’t enough to go around. This philosophy can lead to engaging in irrational actions, like turning a pandemic into a run on paper products. Here are some signs you might have a negative money mindset.

You’re in a Debt-Paying Cycle

You may be so focused on paying off your credit cards that you make larger payments than you can realistically handle if you take a scarcity approach. Now you must return to your plastic to pay for basic expenses. That is why it is important to erase debt and establish an emergency fund simultaneously.

This balanced approach helps to keep you from operating out of scarcity and keeps you out of debt.

You’re Slow to Use Your Emergency Fund for Emergencies 

Similarly, you may still be tempted to put an emergency expense on a credit card instead of using some of the cash you’ve put away if you function out of a scarcit mindset. Why? The scarcity mindset has you believing you’ll never be able to put that money back if you dip into your savings. In reality, all you must do is continue to save.

You’ll have no problem replenishing your savings if you’ve developed good spending habits. You may also have a scarcity mindset if you put buying a house or contributing to a retirement account above living within your means and possessing an emergency fund. 

Off and On Budgeting 

You establish a budget that’s too limiting, which causes you to overspend or to give up on budgeting. Because of a scarcity mindset, you’re overly focused on reducing expenses.

Then you feel guilty for purchasing things you value, or you’ll get caught up hunting for deals on items you don’t need.

Off and on budgeting also occurs when, instead of acknowledging that there will be failures and setbacks, you conclude that you can’t properly handle money. That’s why the optimal budget is one that you can stick to. Find one that works for you. 

You’re Slow to Dream Big

Fear of failure or what others might think can hinder what you want out of life if you operate from the standpoint of scarcity. It’s hard to imagine long-term goals, but short-term goals are a breeze. What you can do is set big goals then do the work on yourself, spiritually and personally, to internalize that you deserve to have what you want and can achieve it.

You Compare Yourself to Others

It can be tough to go on Facebook and see that nearly everyone is doing and buying things that you haven’t done or don’t have. But what you typically don’t remember is that there are financial implications for all that stuff. The person you see relaxing on a beach in Maui may have come close to maxing out their credit card to pull that off.

Hopefully you’re now ready to tackle your scarcity mindset to have a more abundant life, if you’ve seen yourself in any of the above. After all, you will never have enough if you believe inequality is rooted in scarcity, so you have to continually scrap for your share.