How does a scarcity mindset limit your true potential?

Unpacking our fears about money, time, and success—and charting a path toward thriving

How we think about resources—whether it's money, time, or opportunity—profoundly shapes our lives and the choices we make. In this post, I want to share my journey from a scarcity mindset to an abundance mindset, the transformational impact it's had on my life, and practical steps you can take to make this shift yourself.

Understanding scarcity vs. abundance

A scarcity mindset extends far beyond how we think about money. It is an attitude that limits creativity and confines people to thinking small about themselves and all of their resources, not just their personal finances. When caught in this mindset, we fear we aren't good enough. We fear others won't value our ideas or join us. We fear spending money, and we fear we will never make enough of it.

This fixed scarcity mindset makes you believe that:

• You are not enough

• You do not have enough

• You will never have enough

• There is very little you can do about it

Conversely, an abundance mindset doesn't mean simply having or doing it all. It means training your mind to recognise the vast possibilities life offers whilst being discerning about which opportunities to pursue. As Stephen Covey, who initially coined these terms in his bestselling book, The 7 Habits of Highly Effective People, explains:

"Scarcity mentality refers to people seeing life as a finite pie, so that if one person takes a big piece, that leaves less for everyone else... An abundance mindset refers to the paradigm that there is plenty out there for everybody."

The key insight I've gained is that abundance thinking requires focus. It is equally important to make the most of your current skills and opportunities rather than get distracted by endless possibilities. After all, there is little point in digging 10 shallow wells when you simply need to dig deeply in one spot to find water.

My catalyst for change

The COVID-19 pandemic became a turning point in my thinking. While contemplating the state of global financial inclusion, I realised something profound: although 500 million more people have gained access to the formal financial system in the last decade by opening a bank account for the first time, most of those new accounts are dormant or empty. And beyond those 500 million people with just the outer trappings of financial inclusion, we continue to leave more than half the world's population behind entirely.

This realisation led me to write Generation Hope: How Inclusive Economics Can Help Us All Thrive. Ironically, in attempting to address global economic inequity, I confronted my own relationship with money and success. Growing up, I wanted to be super-rich—a classic manifestation of scarcity thinking where I believed more money would solve everything. Through writing the book, I underwent a transformation as I recognised that my mindset was part of the problem. Now, rather than focusing solely on personal wealth accumulation, I want to change the world.

Practical steps toward abundance thinking

1. Reimagine your financial structure

In 2017, I worked with a financial coach who examined my financial behaviour and money mindset. While the coach emphasised wealth creation (which I later recognised as another form of scarcity thinking), I extracted one crucial lesson: the need to have different "pots" of money.

When you have only a single pot of savings, any reduction triggers scarcity anxiety. When you invest all your savings, you don't have a rainy day fund. You become investment-rich and cash-poor in an attempt to maximise returns on every pound—a mug's game, as I discovered.

I created over a dozen different pots with specific purposes. The two most transformative were:

• A "working capital" pot where I gradually built up 12 months of expenses, creating true financial security

• An "idiot fund" designed for when I make mistakes (getting a parking ticket, forgetting to cancel a subscription, etc.), which freed me from self-recrimination over small financial setbacks

This structure reduced the emotional charge around money and helped me make more rational financial decisions.

2. Shift from outside-in to inside-out Living

A pivotal moment came in 2020 when I serendipitously met life coach Nicole Dubois, who articulated something that resonated deeply:

"Most of us live from the outside in. Our thinking, emotions, and actions are influenced by the world through our upbringing, culture, education, religion, etc. In business, it comes from the actions of competitors, the newest marketing trends, the stock market, etc. As a result, many of us are filled with anxiety and overwhelm—a sense of dread that we're falling behind. Instead of thriving, our decisions are made ad hoc based on what will allow us to survive."

To live from the inside out means overcoming the fears and uncertainties the world hands to us. We can no longer adapt solely to what other people think. We can no longer people-please, remain victims, or make ourselves small. We must take full responsibility for our thoughts, emotions, and actions.

The liberation of enough

There's a famous saying: "Hard choices lead to an easy life and easy choices lead to a hard life." By giving up the narrow pursuit of wealth for its own sake, I felt liberated. No longer chasing something I didn't have, no longer looking for validation from the outside world, I could focus on impact and meaning.

This doesn't mean abandoning ambition or goals. Rather, it means approaching them from a place of sufficiency and purpose rather than lack and fear. In Generation Hope, I explore how this shift in mindset—both individually and systemically—can create more inclusive economies where everyone has the opportunity to thrive.

Reflection questions for your journey

1. Where in your life do you operate from a scarcity mindset? How does it manifest in your decisions?

2. What "pots" might you create to give yourself more financial and psychological freedom?

3. In what areas are you living from the outside in rather than the inside out?

4. What would liberation from scarcity thinking look like in your life?

I'd love to hear about your own journey from scarcity to abundance. Share your thoughts and experiences in the comments below.

Embracing an abundance mindset doesn’t mean giving up on ambition; it means redefining success on your own terms, choosing growth and connection over perpetual fear. By breaking free from old narratives—whether about money, time, or external validation—we unlock new possibilities for creativity, well-being, and meaningful impact. The journey from scarcity to abundance is less about acquiring more and more about recognising that you are, in fact, enough—just as you are, right now.

With gratitude,
Arunjay.