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Why people have this scarcity mentality?
Hi again! If you notice my post always is a question. I have this blog about investment and wold like to share thoughts on that, click here to check my blog.
First let me explain what is scarcity mentality. It is that thinking that we as individuals have no chances of getting a share in the worlds richest because we believe that all wealth are already taken by the rich and the powerful thus when we get a hold of something we tend to be like misers. Because of this we tend to contend ourselves with mediocre life and source of income. We tend to choose to stay on the things that we have that we don't like because we are afraid that we may loose it...kinda we are afraid to let go and try other things.
I am not telling that we should all be giving up our crappy jobs and go to the unknown without preparing. You see the rich people are not rich because they are rich. It so fascinating to learn their lives, knowing the struggles and the obstacles they have to overcome in order to be at what they are right now. And one of the obstacles they have overcome is the scarcity mentality.
The rich see every opportunity in all circumstances but we normal people panic when we hear news of political upheaval somewhere over the world or if economy is plunging down. You see during the financial crises there were not only losers....they were gainers as well. These gainers are the wise ones that jump into buying spree because stocks are on sale. As they say the stock market has this cycle, that is bear and bull cycle. you buy when the stock are low and you sell when the stock is high. In other words buy low sell high as simple as that. But because of the scarcity mentality we see this downward spiral as a losing thing thus we jump into selling the stocks even at a losing price.
Also because of this scarcity mentality we tend to buy impulsively without checking the soundness of a company. Wise rich people don't just buy, they research and forecast a company's long term profitability and stability.
One great way to overcome this mentality is to find a mentor. Don't be shy to ask questions. Learn and keep learning and when you are ready apply it. Again I am not saying you quit your job. make time for studying investing. Save some from you salary in due time you will have enough for your first investment. If you bought and the next day the value falls don't panic, chances are in the long run you will see its growth. That fall in value is just loss in paper. As long as you haven't sold it yet you have never lost anything.
First let me explain what is scarcity mentality. It is that thinking that we as individuals have no chances of getting a share in the worlds richest because we believe that all wealth are already taken by the rich and the powerful thus when we get a hold of something we tend to be like misers. Because of this we tend to contend ourselves with mediocre life and source of income. We tend to choose to stay on the things that we have that we don't like because we are afraid that we may loose it...kinda we are afraid to let go and try other things.
I am not telling that we should all be giving up our crappy jobs and go to the unknown without preparing. You see the rich people are not rich because they are rich. It so fascinating to learn their lives, knowing the struggles and the obstacles they have to overcome in order to be at what they are right now. And one of the obstacles they have overcome is the scarcity mentality.
The rich see every opportunity in all circumstances but we normal people panic when we hear news of political upheaval somewhere over the world or if economy is plunging down. You see during the financial crises there were not only losers....they were gainers as well. These gainers are the wise ones that jump into buying spree because stocks are on sale. As they say the stock market has this cycle, that is bear and bull cycle. you buy when the stock are low and you sell when the stock is high. In other words buy low sell high as simple as that. But because of the scarcity mentality we see this downward spiral as a losing thing thus we jump into selling the stocks even at a losing price.
Also because of this scarcity mentality we tend to buy impulsively without checking the soundness of a company. Wise rich people don't just buy, they research and forecast a company's long term profitability and stability.
One great way to overcome this mentality is to find a mentor. Don't be shy to ask questions. Learn and keep learning and when you are ready apply it. Again I am not saying you quit your job. make time for studying investing. Save some from you salary in due time you will have enough for your first investment. If you bought and the next day the value falls don't panic, chances are in the long run you will see its growth. That fall in value is just loss in paper. As long as you haven't sold it yet you have never lost anything.
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