On this episode Sarah and Amanda discuss Scarcity Vs. Abundance Mindset.
Having an abundance mindset has been attributed by many very successful people from Oprah to Jim Cary to be one of the greatest factors in their success. Amanda and Sarah dig into how to have an abundance mindset, how to recognize limiting beliefs and much more.
Sarah Schroeder 0:05
Hey everybody, welcome back to the get your money right podcast brought to you by forward motion.
I'm Sarah. Hey,
I'm Amanda. At forward motion. Our mission is creating generational prosperity, one family at a time. And through our podcast, we talk about everything about moving forward, how and why, how to get your money, right. And there's a lot that goes into that. So we talked about financial literacy, we talked about mindset, we talked about career building. And it all kind of culminates, it all comes down to generational wealth, right? How do you build generational wealth for yourself, your family, and your future? So in today's episode, we are going to talk mostly about mindset. And we're really going to focus on scarcity versus abundance mindset. So it's something that you may have heard of before, but we're going to have some fun really digging into the scarcity versus abundance mindset. So what really is abundance mindset. So I have some prompts that I kind of want to chat about here, and we can kind of dig in. So abundance mindset really says that there's plenty in the world for everyone, there is enough, everyone has the opportunity to grab and have the success that they feel that they deserve, and what they're willing to work for. So Sarah, you know, I guess I'll ask you, as we kind of start, when you think of abundance mindset, or versus scarcity, when you first heard about this, or you know, what comes to mind for you,
I feel like I'm just even based off of the little bit of conversation we're talking about before we started today, you think about kind of how much you have versus what other people have is what I kind of think of when I think of abundancy versus scarcity. And I think it can kind of be multiple different things. But when it comes to just money in general, like, do I have enough versus what everybody else has? I think that's what I yeah, I relate to or what a lot of people start to think of it. Yeah, to begin with, as
well. Yeah, you know, it's interesting that you say that, because, you know, there's a there's a thought that, you know, we always like to think of things in different perspectives. And one way that we think of money or success is like in a pie, right? So abundance mindset says the pie is getting bigger, and I just need to go out and grab my slice. And the scarcity mindset would say, Well, okay, but if you get your slice of pie, then that means that my slice has to be smaller, or I don't get a slice of pie. And that really starts to go into, you know, creating a competition mindset, where perhaps, where we're now doing things or operating in a way that that goes against, that goes against positivity in order to try and get ahead, right? So do you think that when people think of the world as a pie, and the pie is shrinking, or it's static, right, the pie can't get any bigger? How does that kind of connect with you? What thoughts come to come to mind for you?
Unknown Speaker 3:10
I feel like, we kind of grew up that way thinking like, we're in this section of the pie, or whatever it is, and we don't really have access to that part of the pie. Yeah. And we're not gonna get access to that part of the pie. Like, that's just how life is. This is where we are. Yeah. And I think until you, you know, I started learning from you, and just being in the real world. Did I even realize like, oh, no, there's ways for me to access that too. You just have to, like you said to be in that mindset, knowing that that is, but I think it's really easy. For a lot of us, you know, based on where we're coming from, or where we're at now. To be in that mindset of, well, I have this piece of my pie, and I'm doing okay, so I don't really think I'm ever going to get to that part of it. You know, yeah. So it's kind of like,
Sarah Schroeder 3:57
let's say, if you grew up in the hood, right, if you grew up in a urban environment, what is the top echelon of society that you might see, not on TV, not on the news, not in books or outside, but actually in your neighborhood? You know, it might be an athlete, it might be unfortunately, like a drug dealer. It might be someone who's getting merchandise and selling it on the corner. I mean, I honestly like, you know, growing up, some people might remember the DVD guy, right, like everybody had a DVD guy, he you know, he was at 711 or he was at, you know, outside of Safeway or whatever. And you could get, you know, DVDs for five bucks, you'd get for, you know, five for 20 if you're if you're feeling you know, and this was someone who this was an entrepreneur, right? This was a neighborhood entrepreneur in a way so it's hard to see outside of of what you see or you might
Unknown Speaker 4:52
even have, you know, you have normal everyday working parents you but you don't see even maybe Have you been investing? Or you know, you? Don't you see them just getting by and just living in that? Yeah, animal life and kind of staying within your zone? This is where, yeah, my this is where
Sarah Schroeder 5:12
I'm at. Yeah, or, you know, you see your friends or your friend's parents? And you know, it's not let's create a business, some people it is I'm not saying that that's not at all in urban environments, because it definitely is. But when when when we're talking about abundance versus scarcity, it's about, you know, what do you see. And so if you grew up in an environment where money flowed freely, people were investing, people were buying property, people were, you know, owning businesses, then that mindset of abundance of there is always enough, there was always more I can go out and get my piece of the pie is much easier to see than if you grew up in an environment where people are struggling to get their slice. And, you know, I think that kind of moves into, like the science behind it. And I want to spend some time talking about the science behind mindset and abundance. And I want to talk a little bit about what are called neural pathways. And so I know that might sound like a big, you know, kind of topic, but really, a neural pathway is just the way that your brain is trained. And I'll read here. So as people participate in new activities, they're training their brains to create neural pathways, the pathways gets stronger with repetition until the behavior is a new norm, in terms of repetition, it takes about 10,000 repetitions to master a skill and develop the associated neural pathway. And so then I'll go on to and these are definitions coming from different health journals, but neural pathways comprised of neurons connected by connected by synapses in your brain, created in the brain based on our habits and behaviors. So when you do something over and over and over, or when you think something over and over and over, it trains your brain to take that same path, when similar things happen. And so you know, to make it something physical, it's riding a bike, riding a bike takes certain actions, certain movements for your body to me, and then we even hear the term like, it's like riding a bike, right? It's something that once you learn it, and once you master it, you're going to be able to do it over and over. Well, when we think of neural pathways, we have to also think that, once we understand how the brain works, we have to also recognize that the same is true in the opposite, right? So if you train your brain to think there's not enough, or this happened to me, life happens to me, life doesn't happen because of me, right? I'm not in control, then you're training your brain to think and believe that. And so when something doesn't go your way, right, that's where that ability to have consistency takes a backseat, right? I tried this, it didn't work for me the first time maybe it's starting a business, maybe it's trying a new industry, maybe it's trying to learn and you learn it in school, and you're getting made fun of right? You have to train your brain to think okay, well, that's not for me. And so now your brain believes that and each time that you do it, now you're creating that neural pathway. So you know, there's a couple of different mindsets. And again, we're talking about scarcity versus abundance mindset. And so scarcity mindset says, there's not enough. And those are thoughts, like, failure is a limitation of my abilities. Now, when you think of failure, what comes to mind for you?
Unknown Speaker 8:52
Come from I mean, my personal failures, or just like in general, what I consider a failure.
Sarah Schroeder 8:57
Yeah, that's great. So what would you consider a failure? Like, what would you consider failure to be?
Unknown Speaker 9:04
It's hard, because I feel like, I don't like that word. I don't like the word failure, because I feel like maybe it didn't go the way you planned. But it wasn't necessary. Like, I feel like failures, so native. So I mean, if you were going to give it like a literal term, I would say maybe like you feel that like winning something like a game, a good game
Sarah Schroeder 9:25
or something like that. Okay. So I feel like in life,
Unknown Speaker 9:27
you don't fail. You just, you just learn from something you did that didn't have the outcome that you wanted it to have. That's not necessarily a failure. It's just not what you were planning. So you just have to adapt or figure out how to change that for the next time. Yes. Oh, no, that's stupid.
Sarah Schroeder 9:45
No, no, that's actually awesome. Because on the other side of kind of a, a scarcity mindset or a fixed mindset where that says failure is a limit that I have. There's the growth Growth mindset that says failure is an opportunity to grow. Right? It didn't happen exactly how I wanted it to happen this time, but that doesn't mean that I'm stopping there. Right. It's an opportunity to learn and grow and move forward. Right. I love that. I love that you that you shared that. So?
Unknown Speaker 10:18
And then also sorry, just No, no, no, please wait for the pathways, the neural pathways and stuff. Did you also relate that to like a good habit and a bad habit? Oh, yeah. Because I felt like he always used to tell me that. And I don't know what now but it takes some movies like
Sarah Schroeder 10:37
27 days to create a habit or 27 days to create a habit and seven days to break it, or is it anyone in
Unknown Speaker 10:44
seven? Like it was like, a lot longer than that? Maybe like years? Yeah, days, like, it takes like, a certain amount of days to like, create a bad habit and like years to break it or however, however long liquid? It could be totally Yeah, during that. But just something you know, the same thing like your mindset, if you're constantly thinking, like, it's probably really easy to have a negative mindset. Oh, yeah. So just adapt that quickly, versus having that positive mindset. And maybe it's hard to have that positive mindset because you don't have those outlets, or you don't know, you don't have those resources. And know that you can have that positive? Like, does that make
Sarah Schroeder 11:24
sense? No, it totally does. Because our brains are hard wired to go to the path that has less, less resistance, less resistance, our brain is trained that way, because that's our brains whole, like the whole this thing inside your head, its whole job is to protect you. And so trying something new, hard, or outside of your comfort zone is, it's hard. It's scary. And your natural instinct is typically going to be to fight against that, like, stay in your lane, stay in your comfort zone. Don't do that. That's scary. It's bad. What if it goes wrong?
Unknown Speaker 12:06
And I think I can relate to that a lot from you guys. Meaning Jeremy, you you know our family. You guys don't know who these people are. I used to just when this all started when you guys were starting to talk about investing and all the things and it would just stress me out. And I'm like, Look, I did my job. Like I went to school, I got my degree and go to work every day. I have a 401k. Like, I'm good. You know, like, Stop stressing me out about all this like stuff. And it was really that was my reaction because I was nervous and scared. And it was just like, it's overwhelming to me like money. Makes me nervous. Yes. You know, like, so the more we talked about it, like I've said the last episode, the less scary it was for me. And the more I realized to what I thought was I'm good. I'm great. It's like, No, this world we can like, Yeah, I'm a nurse and I make good money. But good money in today is not the same as good money is gonna be yesterday or tomorrow. And you quickly realize, like, if you want to be truly, like, set up and comfortable for your future, yeah, you have to do some, you have to do a little bit more. You have to, you're gonna have to do some uncomfortable things. Comfortable thing. Right, right. It's so funny.
Sarah Schroeder 13:23
I remember, I remember having a conversation where I was touting or talking about that. A million dollars, is it a lot of money. And, and when someone who's not a millionaire, I'm not a millionaire, right? When someone who's not a millionaire says that it's kind of like, like, who are you? Okay, a million dollars is a lot of money. But in 2021, we have more billionaires today than ever before. And we're literally on the verge of potentially having our first individual trillionaire, you know, in our world. And so when you think of what a million is to a billion, right, and when we think of, you know, I will never forget the first house that my mom bought in the neighborhood that we grew up in was $63,000. That's what she bought the house for. That same house today is worth well over like $270,000 or something. It may be more I haven't checked it in a little while. So what really is different. It's the same house. It's the same neighborhood. There's been some improvements but not
Unknown Speaker 14:38
not that not that much. I mean, in the neighborhood itself isn't hasn't even improved as a whole that much to be it.
Sarah Schroeder 14:46
So today's dollar is not tomorrow dollar. It's not right. So when we think about what it takes to earn, there's 24 hours in a day, there will always be 24 hours in a day until we move to Mars like there's always going to be 20 Four hours in a day, or more, days, hours and days. Just by depend days are based on the number of times it takes for a planet to spin the earth, I think Mars spends, I think the Days on Mars are longer, I think because it's further from the sun. I mean, now, now we're getting very, very esoteric, right? But like, there's always going to be 24 hours a day, and everyone has the same 24 hours. And so, here's how I want to think about or talk a little bit more about abundance mindset, embracing change versus fearing change, right? And hopefully, this connects, but I like to ask the question of think of the most successful person that you know, doesn't have to be a billionaire or a millionaire. And then think of different celebrities that you follow, or you're interested in, and they don't have to be movie stars or music, you know, some people like, I follow Financial Literacy celebrities, right? Like, whatever it is for you. Ask yourself, like, is this person just inherently smarter than me? And the answer is typically going to be no, right? The difference is, they are out there taking risks, doing the hard thing, going against their inner instinct to feel defeated, or give up when the failures come, because the failures are going, they're gonna come, they're gonna keep coming, they're always going to come. And you know, there's a saying in, in the world of like, if, if you're not failing, you're not trying enough, right? You're not trying to things. And so, I always like to ask that question of like, why not me? Right? Why not? You? Why not you? So what are your thoughts?
Unknown Speaker 16:58
There might not mean,
Sarah Schroeder 17:00
anything, anything you want in life, whether it's the next step in your career, whether it's, you know, financial,
Unknown Speaker 17:06
I always had kind of a good, I've always done a good job of like, when I want something, my mind towards doing it. I don't know, maybe there's certain things that I might not put my mindset towards. And I feel like now when I think it's usually fear, I think that's usually the biggest, or lack of knowledge. Yeah, I'd
Sarah Schroeder 17:27
say those are probably the two biggest reasons for not thinking you can be that person. Yeah. For whatever it is, or be the you version of of that, that, you know, hitting that level. Awesome. So then kind of next piece, or the next question that that I have is, you know, I wonder if, if it's so easy to embrace the limiting thought process. Of that's not for me, or, you know, I just need to be happy where I am and not want more for myself. You know, I think something that that I'm trying to do is I'm trying to speak to people who are where I used to be. And here's the story that I do want to share. So one of my best friends, you know, rest in peace, Alicia, when I was young, like 2021, we were roommates. And I never realized I didn't realize this at the time. But we were talking and I can't I'm not gonna sit here and lie and say I remember the conversation. But I remember that. She said something. And it was, I believe, a compliment of some sort. And my initial reaction was a defeating or negative comment. And that must have been the last straw for her. Because she said, You know what, Amanda? Like, I don't know if you realize this, but you're kind of a downer, like, you're pretty negative Debbie Downer or something, Susan. And, and she said, you know, you always have something negative to say about everything. Like it could be Wow, you look really nice today. And like, Oh, whatever. I just got this at the Goodwill. And it's like, okay, like, it looks nice on you, you know? And that comment literally changed my life. And you know, I'll ask you like, today, right? In the last however many years would you consider me a negative person? Like, like constantly like thinking of like, going to the negative? No. I've actually had people in my current life tell me like sometimes like I'm agonizingly positive, right. And I remember in that point in my life, things were like really, really hard. Like it was hard. to pay rent, it was hard to like I was a young mom, I, you know, I felt like nothing was going my way, right. But that comment from a really good friend really just started, it actually opened my eyes so that I started to see because I actually I argued back I was like, No, I'm not I'm just being real, right. And I hear people say that all the time, when they're embracing their limiting beliefs. I'm just being real. I'm just being realistic. I'm just thinking of things how they are. Right? And that was what I said. But over the course of and it was yours. It wasn't like, oh, my gosh, man is amazing. No, it was years. Over the course of years, I started to recognize when these things would happen. And it was like little bit by little bit, I started to see like, Oh, that was negative. Oh, that was a limiting belief. And today, there's a saying, so thank you, Alicia, wherever you are, there's a saying of you're responsible for your second thought, and your first action. I don't know who the quote is, by I heard it from a gentleman that I worked with in the diversity, inclusion and belonging space. So going back to what you had mentioned, about, kind of that fear mindset, right. And our brains being hardwired to protect us from the unknown. So being responsible for your second thought, and your first action means that as humans, we're going to have a limiting belief, right, we're going to, to have a fear of change, we're going to try to compete to stay on top, rather than collaborate to stay on top, we're gonna have that instinct of there won't be enough. But as you recognize that first thought, and you respond with your second thought, right, your thought about your thought, is what you're responsible for. I can either say, there's not enough in the world. And then my second thought reinforces that like, Yeah, remember that time when I ran out of gas, no one was there to help me write my phone. Or,
or I can have, you know, a second thought of, there's not enough? Well, no, there is, remember that time when you were really positive, and you continue to put yourself in the right place at the right time, and you met that person who then helped to catalyze your career into the, you know, the next level, now, I could have met that exact same person in the wrong mindset. And not, you know, been able to have the success. Or you can be responsible for your second thought you can be responsible with what you do, and start to embrace abundance in a big way. So I rambled said a lot there. But anything that you wanted to add or share on that?
Unknown Speaker 23:01
No, I think you. I mean, you brought up some good points, it's all in your mindset. And if you have the mindset, whether it's in abundance, an abundance of wealth of positivity, you know, whatever it may be, if you it's like, you know, put out there what you want to return? Yeah. Because if you put out that negativity or that negative thought, that's what's going to be the first thing that comes to mind the next time. So I think that was a really long time. Yeah, it kind of makes me think a lot about the way I function in the past. And it makes you kind of want to just like, get on that might continue on that mindset, you don't really think like, Oh, that's true, whatever you were saying, like your first thought. And then actually, your second thought is what you more act on and your first thought, you know, kind of take like a three second like, Okay, this is what my initial thought is, and this is what I want to do I want to change about that thought, yeah, yeah,
Sarah Schroeder 23:58
take an inventory of it. Right. And, you know, kind of getting back to the neural pathways. You know, as humans, our first thoughts are, a lot of times they're not going to be, you know, instinct is to protect and protect sometimes keeps us away from things that are great for us. But if we're constantly acting on that first thought, or that negative thought, or that limiting thought, we're training our brains, we're training our brains to go down that path, like, we're training our brains to like if you if you were learning to ride a bike, and every time you got on a bike, you veered to the right and you ran into a wall and then you did that 10,000 times like one you're probably not going to get back on a bike and to your brain is now things like, bike equals wall, right? And so, but if, if you sit down and you say, Okay, I want to begin to learn and understand better about how to move my financial status to the next level. And then You say, Okay, well, what's the first step there, I'm always going to tell you that the first step is to put together a really smart, detailed and strategic budget. And then here's the real flex budgeting is easy, then working that budget sticking to it. Right? And so that's going to be the first step. Now, next question is, well, I don't know how to do that nobody ever taught me. So I'm not going to do. That's what a lot of people will do. Now, some people will say, Hold on, that was a limiting belief. And that's a thought that's keeping me where I am rather than allowing me to move to the next step. So what am I going to do, right, if you're a listener of this podcast, you might go to forward motion az.org, and pull down, you know, some of our free resources, reach out and attend a workshop, if it's a great idea sounds like a great idea, right? If there's not a workshop in your area, you might say, You know what, I bet. If I typed into Google, how to create a budget, I would probably get some really great results, that would lead me down that path to the next step, I will go one step further.
Unknown Speaker 26:13
And if you typed into your iPhone, the App Store, you probably be able to find a free budgeting app that you can download right to your phone, you probably
Sarah Schroeder 26:24
could and then there's probably a section of that app or website that has tutorials and videos and advice and articles. Right? Yeah. Or, you know, there's videos on our YouTube page that have tutorials and, and next steps, right. And so it's all about that second thought and the first action. So that's, in a nutshell, abundance versus scarcity, thinking. And at the end of the day, what, what we're trying to say is that, if you believe that there is enough out in the world, you are much more likely to go out and get what is yours. But if you believe that everything that is yours, you already have, and you're not, there's nothing else out there for you, you're more likely to surround yourself with people who believe that as well, you're more likely to surround yourself with resources and thoughts that believe that as well. And you're more likely to stay in your little bubble and create reinforcements of that thought. So that your limited view of the world says See, I was right. Right. If you want to change into a new career, and you apply for a job, you get one interview and you don't get the job. And then you say, see, you know, and that's not for me, right? And then you never try again, like, well, there you go, you know, that's not how life works. Like you have, you might have to go again and again and again, and try the next and the next to the next. And then eventually it will happen. I think, um, Jack Ma, who, he's one of the richest men in the world, and I believe he's in China. And there's a story that he got turned down for a job at KFC in China, like, so many times, said, You know, he's never gonna make anything of themselves. And today, he's a multi billionaire. Right? And now he could have believed that, nope, never gonna happen, right? But instead, he kept going and, and then he made of himself what he knew was for him. Same, you know, you can take Michael Jordan, right. He didn't make the basketball team and he you know, miss this many shots and all this and that, and we've all heard the stories, if he would have stopped, no one would know his name, right? But instead, he said, No, this is what type of want. This is for me. And I'm going to keep going after him. I think we probably have time for just one more. So growth mindset says, I can learn to do anything I want. I think this one kind of ties in really well with what we're closing on. I can learn to do anything I want. And a fixed mindset says I'm either good at it or I'm not. Okay. So I think that ties in really well with the Michael Jordan and Jack Ma little blips that we just kind of talked about, but any thoughts that you have on on those two paradigms?
Unknown Speaker 29:18
I feel okay, so i really i i like that i can do like anything that I want. Like I can get be good at anything that I want. I do think there are certain things in life that that might not apply. Like what I don't know like singing like not everybody can. Everybody is a singer but and that same soundtrack it is. There are people that can like match a pitch. And that might not be mean that they can sing well, but they can at least one of Ramadan. So I guess it sounds good. But no, like, I'm a very poor kind of, like, I'm not a great cooker, or cook whatever it was, I don't really enjoy it. But if you give me a recipe, you're a good cook, I can usually follow it. But because I don't enjoy cooking that much, I tend to like, I'll skip apart. If I won't read all the way. And then I'll be like, Oh, I was supposed to split that up, you know, like, but I firmly believe that like when I'm in the mindset, especially when I'm cooking for other people, usually when I'm cooking for the people, I do a great job. That's more like for myself that I don't pay attention as much. But it's like you give me a recipe, I can pretty much do it. Like if you give me an instructions, and what I mean to say, if you give me any instructions, I can usually figure out how to do something.
Sarah Schroeder 30:47
Let me ask you something, you just said something very interesting to me. You said, not a great cook. Because it's not something that I enjoy, if you wanted, if that's what you wanted. And if you if you wanted to be the best cook out there, and you dropped everything. And you said, every day, I'm going to be cooking four to five hours a day minimum, or I'm going to cook a new dish every day after work or before work. I'm going to learn different techniques. I'm going to learn saucy, a I'm going to learn improve my knife skills. I'm going to do all these different things. And you did that every single day for let's say a year. What kind of cook do you think you'd be? A really good one? Amazing? Yeah. All right. Great. I can learn to do anything I want. Yeah. Now I don't know about singing. Not everybody's a singer. You know, like Mom,
Unknown Speaker 31:50
Dad really not like, athletic like I can. I have been in sports. And I do an okay job. But I would not be the first one to call out on TV. Like it's just not. When you played soccer. I thought you're really good defense girl. And you just wake up all the time. And I pick it out of the way. I'm good at that. Really. And I mean, I can run a lot in soccer, a lot of running. There are
Sarah Schroeder 32:15
people in the Major League Soccer, whatever that's called. There's players. Okay,
Unknown Speaker 32:22
true. Oh, yeah. But there's like a whole hand eye coordination that comes along with a lot of sports that a lot of people are not blessed with,
Sarah Schroeder 32:29
Jr. was his eyes.
Unknown Speaker 32:31
Yeah, that comes naturally to some.
Sarah Schroeder 32:36
I'll get that. I'm gonna do that. It's like me, I'm an amazing driver.
Unknown Speaker 32:40
Like, even though Michael Jordan to get better. He knew he had the baseline skill set. You know, you gotta just like, I'm not helping here. You are?
Amanda Miller 32:50
No, you are, you totally are. I again, but
Unknown Speaker 32:55
or want to like, I feel like, everybody wants to make money, right? Like, fear. And getting over that not knowing how. So I feel like everybody really wants money is something that everybody no matter who you are, as much as you want to say, Money doesn't matter to me, like, even if all you want to do with your money is given away to all the other people, you need money to do that money is yeah, if you even if all you want to do with money is solve world hunger. If you need money to do it, you need to do it. So I feel like that is what you're getting at. Like, we all want to be comfortable in whatever it is. Comfortable means to us and like with our financial situation. And we're just, you know, sometimes a little bit afraid, and how do we get there?
Sarah Schroeder 33:38
And we all want beat down or more service for others. We all want that for ourselves and for our future generations. And the question is always, or a lot of times, how do I get there? And so today we've talked about abundance versus scarcity. We've talked about growth mindset versus fixed mindset. And what it comes down to is, I'll close it with this, you are all responsible for your second thought and your first action. So that
Unknown Speaker 34:09
was that quote, so I was really not doing that.
Sarah Schroeder 34:14
Well, thank you everyone for tuning in. Once again, to get your money right podcast with forward motion. I'm Sarah. I'm Amanda. Our mission at forward motion is creating generational prosperity, one family at a time. And you can find us on Facebook and Instagram. At forward motion AZ you can find us on youtube moving forward one family at a time. We are a nonprofit organization here in Arizona, and we do appreciate your donations at forward motion az.org forward slash Donate. Thanks so much. We'll see you all next time.
Bye guys. Bye. Hey,
Transcribed by https://otter.ai