Scarcity Mindset & Investing

Order Kerney Whalbury and a waddery woman. And before we get started on She's on the Money podcast, I would like to acknowledge the traditional custodians of the land of which this podcast is recorded on a wondery country, acknowledging the elders, the ancestors and the next generation coming through as this podcast is about connecting, empowering, knowledge sharing and the storytelling of you to make a difference for today and lasting impact for tomorrow.

was like, Babe, there's a massive link here. Scarcity mindset is often the reason people don't invest, and we need to talk about it. So hopefully this is maybe a good introduction to why scarcity mindset might be holding you back a little bit. But Beck, have you ever found yourself in a position where you're like worried that if someone gets something you want then you might not have it too, Yeah, like a pay rise or like a promotional,

like maybe even just like something random. It is hard to admit, but I feel like if someone in my circle or someone around me has the opportunity to get something or just get something that I kind of want, I feel like, what are the chances of us both receiving that?

if they're doing it, maybe I can't do it. And I think that that can actually get in the way. And I think a lot of people in our community have this mindset. And a couple of weeks ago, we actually talked about what a lot of money looked like and I remember how you said, oh, I think it was like thirty bucks. Yeah, whereas I said, if you have five dollars or even one cent. Let's be honest nowadays, but if you have five dollars, that's actually enough to

get started investing. These days and today, we are going to be diving more into that and really focusing on a scarcity and abundance mindset and how that impacts your

investment journey. And I think it's really really important and I promise like we'll get to the point, but we're going to be looking at the differences between scarcity and abundance mindsets, and then after the break, I'm going to teach you how to shift from the negative to the positive and then how this actually affects your attitude towards investing,

because I promise it does. Often with scarcity mindset, you just you don't want to put your money out there like we've got them it might run out, like what if I need that money later, Whereas a more abundant mindset just TLD or if you don't want to listen to the whole app This is basically it's summary, but abundance mindset's more about like, oh, if I put my money out there, more will come and I can create more.

And I think there's definitely negative connotations to scarcity mindset that mean that we actually limit ourselves and we really shouldn't be doing that, right, Okay, it's actually very company to know that it is something that can be changed. Then it could be changed, But to change something you have to be able to identify it and come to terms with what the reality of the circumstances are to then move forward. But if we can't do that, often we just stay stagnant and we don't change at all.

a picture now and absolutely could not relate anymore. You know, like Banjo's the Bakery and how they do that little blueberry tart pie thing, That's what I thought of. Oh okay, I thought they're unlimited. They make new ones every single day.

on the negatives. Second we've got they lead with more of a victim mentality and blame things that are outside their control, which adds to stress, worry, and in action. They spend their mental energy on what's lacking in life or not working instead of the positive. They might refuse to collaborate or share with other people. They often and this is a more negative list, but I think it's important to read it out. And I know I said before, Beck,

I think you lean more towards this. I don't think that you're super negative, but I do see asp of scarcity mindset in the way that you approach money. And that's why I've pointed it out because I don't want people to think, oh, this big negative list is all me that's awful and the world. It's not. You could have a lot of scarcity mindset, or you could have like a little teeny tiny bit of it that might be that one thing that's holding you back. So it's

not a good or a bad thing. It's just something that we can identify about ourselves to put ourselves in a better position.

like peaches. So thanks, though, You're like, but it's the best peach. Yeah, like, have you seen this? It is literally perfect? And they go, yeah, still don't like peaches? Thanks, So babe, can't relate, can't relate. There is truly nothing better I can peach in summer, but moving on.

with the kindness that you need to. So when it comes to people's money stories, and the example that I'll go back to is brunch, right, So Beck, let's say you go out for brunch with a girlfriend and you just go, oh my god, I'm going out for brunch with this friend. I love it far out just a bit of a stinge. Whenever we go to brunch, she literally eats before we go. And she's a doctor now she can afford it. Like that pisces me off. Because she's a doctor, she can afford brunch, and every time

we go, I eat in front of her. She just saw it as a coffee. Sometimes she gets a croissant, but like she never gets the full you know, big Sunday breakfast. Yeah, and you're looking at that from your perspective and maybe not considering her money story. Yeah, she might be a doctor that has a really good income now, and you're right, she absolutely could probably afford brunch if

it was in line with her values. But what you're not considering is maybe she grew up her money was super, super scarce, Like talking about grocery items gave her anxiety as a kid because she always wanted the roll ups, but mom and dad always said, no, it can't afford it. We are absolutely not getting those. It's not an option.

So money has always been something that makes her really anxious, so going out to brunch, she can only justify getting her coffee because it's actually part of her money story that she's always been told No, we don't do that, No we don't eat out, No we don't do this. And your friend loves you so much that she wants to go out for coffee with you. She really wants to go out for brunch. She accepted your invitation with her whole heart because she was so excited to see you.

But then on the flip side, you're judging the way she spends her money because you have no idea about her money story because it's money, your flipping business. No, but that scarcity mindset in that circumstance is absolutely fine

because you know she's living within her value. And to be honest, kudos to her for being able to say knowing that circumstance, because I know when I was at Union, didn't have heaps cash and someone invited me out for brunch, I'd be like, oh, yeah, I'll get something too, even if I didn't want to spend the money. So like, that is quite a strong willed thing to do, mad respect, But that scarcity mindset might limit her in a number

of other areas of her life. So for example, we just you know, this is very stereotypical, but I think it drives home the point she's a doctor. Now we're assuming she's making good money, but she might save every single dollar that she has. She might not have bought a home yet, even if it's something that she's been really working towards and really wants to do, and that's her dream, because parting with that money gives her mad anxiety,

she just can't do it. Maybe she really wants to invest for her future because she wants to be a single lady for life, got no interest in a partner. But her income isn't enough to create the life she wants, so she needs to invest, but she just can't because she doesn't want to put her money into an investment account because for her, that means that she feels like

she loses a bit of sense of control. Compare that to somebody who grew up in a situation where money wasn't scarce, It wasn't something that you know, triggered anxiety. Was kind of flippant, right, like mom and dad gave you some money, or your guardians made sure that you

always cared for money wasn't ever an issue. And you're both at school, you're both learning the same stuff, you're both you know, out brunch, and you might both be talking about she's on the money, and you might both say, yeah, I really want to invest. But if you never grew up with a scarcity mindset, you are far more likely to be like, yeah, fire out, why haven't I done that? I might just chuck fifty bucks in Charesi's and actually just start my journey today. What am I waiting for?

This is so good? Whereas the person who has the scarcity mindset is more likely to mena about that. They might get a bit of what you've been calling it analysis paralysis, looking at every single platform to make sure that they're in one thousand percent control because they're just not sure what step to take next, and then they just don't want to do it yet because fifty bucks is actually a lot of money, and what if I need that soon? And what if I actually invest that

and it doesn't go so well? And I'm really anxious because scarcity mindset is ruling my life, and that negative money story growing up is now impacting the way that I'm interacting with money today, and it's actually going to limit the outcomes we can create. That's often why we talk about cycles of debt and cycles of poverty continuing and replicating themselves, because even if we give people education, sometimes they don't want to take that next step. Does that make sense?

how to do it. And you know what, I wrote this book of the ab CD and EF step for you to actually invest like I have actually given you guys, step by step instructions on how to invest. Here's how to review a platform, He's how to integrate it into your budget. Here's how it looks over time. This is what compound interest does. You actually have that knowledge. But maybe that next step that you're not taking is due

to scarcity mindset. And if we don't address that, you're not going to take that step because that step makes you feel sick. That step gives you anxiety. And the second we have anxiety about something, warning lights go off and we go this must not be the right thing to do. I know everyone's saying it's good, but I feel disgusting about this. I feel anxious. I feel really unsure. Maybe I shouldn't be doing this. You're right, Maybe I'll just put it to the side and look at it next year.

of somebody else's. And often you see this at school where you know young kids like I remember because I had a bit of a scarcity mindset, and I still do and I still work towards being more abundance mindset. And that's why I talk about it so often, because I need to convince myself regularly that this is where

I want to be, not where I actually am. But I remember being like, oh, my friend's got an a on that assignment, and I got to be yeah, I'm never gonna get there, Like, you know, she's got all of this succept. It had nothing to do with that. I was comparing myself to somebody else for what outcome to just feel shit about myself. Yeah, great idea of Victoria.

That's really good. But essentially, instead of hurrying through their decisions, they make really deliberate, careful choices that are aligned with their values and the life that they want to create. And if there's enough for everybody, then there's no need to compare. There's no need to compete because your success

not at the detriment of mine, and vice versa. It's kind of like this quote that I am obsessed with a rising tide lifts all ships, and I think like that she's on the money with a rising tide all the ships. That's you guys, Like, the more we can create, the more content that is out there, the more our tide rises, the more you guys rise, and it's not the detriment of somebody else. Yeah, there might be a new little boat that's just come to the marina and

they've never actually been on the ocean. Before, like they're not on the tide. They don't know what they're up to. But that's okay, you can come along. We've got all this content that you can consume and get up to speed with everybody else. But we're rising and we're doing it together, and I think that that's the most important thing there, Like you do not have to push someone

down for you to rise up. And I think that that's where you know, when I did that recap of like things that are in and out for twenty twenty three, and I say girl boss culture, like that to me was out because that often aligns to I do well and everybody else doesn't do well, and I will step on people to get where I need to go, and that makes me sick. We don't do that, No, but you can literally get where you want to go without snatching a piece of pie from somebody else.

opportunities where some people don't see any. They think about the challenges and growth ahead, and that actually makes them feel really empowered and engaged. Their positive attitude inspires and energizes others to perform well. They collaborate well with others by sharing knowledge and success, which is kind of like the rising tide lifts aul ships. It's kind of like do you remember at school when people be like, oh, can I see your notes? Like literary?

would go to the library and scanning was free. Printing wasn't Scanning was free, and I'd scan it and put it in my emails and people would pay me like ten bucks per sheet of notes. Yeah, right, But I

was under the assumption and this is maybe negative. I don't know who knows where we're going with this, but I was like, I can give you my notes, I can literally hand it to you on a silver platter, But if you don't read them, and you don't put the work in the time and the energy and the effort in that I have, you're definitely not going to be successful, even if you've paid for this copy of notes.

a business lady, have been from the beginning. But I was literally like, well, what's the use in you know, hiding my notes and being like, oh my god, no, if you didn't take notes in that lecture, baby, already didn't go to the lecture, You're already behind. You're already going to have to do the work. And if you just think that having the notes and paying for them is going to put your head, it's not.

just as scared city person. You could be abundant in every other aspect of your life, Like I was when it came to notes, but when it came to money, I was really scarce. Does that make sense? So it could be a relationship as well, Like you could have abundance in every other aspect of your life but have some type of relationship trauma. Therefore, you've got, you know, a scarcity mindset when it comes to creating personal relationships. So it's not just money, it's not just one aspect

of your life. It can kind of cut and pacet different areas around. Does that make sense, Yeah, that does make sense. So the last thing before you ask another question I do apologize is people with an abundant mindset they often think big and like to embrace risk, which I think is important because risk is a really big part of investing. Not only do you have to understand risk, but you have to be willing to take some level of risk to get some level of return. And obviously

there's this risk return trade off. The more risk you take, the more likely return you could anticipate. And that's why if you've got like a term deposit, there's less risk involved, and that's why the percentage rate that you're going to get back is less, whereas if you invest in Australian shares that's a bit more risky, and then international shares that's a bit more risky. Again because the more risk

you take, the more likely return you get. But someone who has abundance mindset fully comprehends that, whereas somebody who has more of a scarcity mindset sees that risk return trade off and goes, ah, heck, no, any level of risk is giving me anxiety. Any level of risk is unacceptable. And that's often because they don't fully comprehend what that risk means. They go, oh, I could lose all my money.

It's like when you talk to people about the share market, and it's so interesting because obviously I worked as a financial advisor for years, and I would talk to people and be like, yeah, like I work with my clients and you know, I create share portfolios and I manage their money. And they're like, what you just invested? What if you lost all your clients' money? And I'm like, oh, well, you know, the way I invest is actually for the

long term. And if you look at the share market over a thirty year period of time, like losing money is actually you know, that hasn't happened over that frame of time. And you know, the clients I work with, you know, understand that we don't actually invest for a short period of time, and we understand the economics of

the market. And if the market goes down, like I have educated my clients in a way where they know, if the market's down shares are on sale, like maybe we could pick up some more, it's not time to sell. Whereas people who have more of a scarcity mindset might convince themselves to invest and go, oh, this is great, no worries, Like I've taken the next step. I'm so proud of myself. And then the market shifts itself back and they shit themselves and go, oh my god, my

share portfolio is down. Oh, I better sell it all because I don't want to be left with nothing. And what they don't realize is, you know, they might have gone and bought ten shares, and those ten shares might have been worth a dollar each at the time of purchase, so it was worth ten dollars in total. Their shareport volume might now be valued at five dollars, but they

still have those ten shares. And if they rode the roller coaster and waited and didn't buy into this mentality of fear and anxiety that would ride the roller coaster back up. Those ten shares might be worth ten dollars again, and then it might be worth fifteen dollars. In thirty

years from now, it's probably worth twenty or thirty dollars. However, if you sold your ten shares for five dollars when the market's down and you wait for the market to re recover, you then have to spend double what you got your shares out for to buy back ten shares at ten dollars again, and it puts you in a position where you're actually shooting yourself in the foot. And we saw it a lot over the last two years because obviously COVID has thrown us in an absolute spin

when it comes to the market in general. We saw a lot of people posting our community or message me.

But over the last two or three years, while COVID has been happening, two micro investing platforms that are really popular in our community Arrays and Spaceship, and people would get on them with not enough education about the market because they were easily accessible, and then the market would drop and they be like, oh, my Spaceship's doing so badly so I just so all out and I'm out, it's so silly, like investing is not worth it, Like I can't believe that these people talk positively about it.

I lost thirty bucks, and you would ask a follow up question and be like, oh, how long were you invested for? Oh, six months? And you'd be like yeah, Like you're meant to invest over the long period. You're meant to invest in things that you understand. And I think one of the things that is really important when it comes to investing is one understand the long term scarcity mindset, understanding whether that's going to shoot you in the foot when something does happen, but also understanding what

you're investing in. And often if you're choosing just a microinvesting platform, you just accept the terms and conditions that they have and the portfolio that they've put together without comprehending it, Whereas often I find that people who go to different platforms, like they might go to Chares's and they've picked a specific ETF because it aligns with their values, and they've picked a few direct shares that align with their values, They're less likely to sell out of that

because they feel really committed to that cause whether the market is up or down. Whereas if you don't don't fully comprehend what is going on in a portfolio and just download it because you saw somebody else was using it, that's where you're more likely to find yourself in a bit of a pickle or feeling like you just want to get out because you feel like you've lost your money. Does that make sense?

me stand out the back of fifteen minutes. Can't I add my fifteen minutes to my half an hour lunch break and then have a good day.

in the future and the financial freedom that you actually deserve. Like, if you're not creating financial freedom or working towards it and you really want to be, you're going to carry a lot of guilt later down the road when you're like, oh my god, I wish I was doing this earlier, or you know, I speak to a lot of people in their sixties who are about to retire because we've just discovered our podcast. They're like, I wish I'd known

this when I was younger. I wish I'd pulled my finger out, or I wish I'd put more in my super And I just feel like that's not a position I want anyone in our community to be in And as much as I say, look, you are where you are, life is a journey. And I I know that if I had this education when I was twenty one and got into personal debt, I wouldn't have listened to it. I would have been like, that's call by I'm living

my best life. Like my mindset was so different. But if you're open to change and you want to create change, it is entirely possible. You've just got to have the information at the right period of time to facilitate that. And sometimes just having the information isn't enough. You've actually got to want to change. So first I want to talk about I guess how to snap out of that scarcity mindset and the psychology of what's called reframing. So it's taking one situation and changing that view from a

negative to a positive. And I think that that can actually be really, really helpful. So instead of saying something like, oh my gosh, like I can't believe I have to get up in the morning and go to work. That's the worst you might change it too, Oh in the morning, I get to go to work. It doesn't always have to be the super sickly sweet amount of positivity. Like, that's actually, from my perspective, unobtainable. I'm not always super sickly sweet, and I don't actually want that in my

life because this would be weird. Let's be honest. If I was super positive all the time and I said, oh, instead of I have to go to work in the morning, I was like, oh, my gosh, I love going to work. I'm not gonna believe that. No one reframing it to a take of gratitude to well, I get to go to work. I mean, I'm not super super pumped, but I get to do that, and that's a privilege in itself. I think reframes it to a positive mindset that's not that super sickly sweet. Like do you know what I mean?

Because I feel like some people online are like, reframe it to the positive and you're like, no, I'm not gonna do that.

you and surround yourself with positive people. The people around you will really influence you. That quote of you are the some of the five closest people to you, I genuinely believe, and spending time with positive minded people will often have you soon thinking in that same way. This one's a bit sappy, and I know we said no

toxic positivity, but practice gratitude. You don't have to be overly sickly sweet about gratitude, which I feel like every influencer and their dog is carping on about, especially because it's new. You knew me, Like, let's write in our gratitude journals. I get it, and I'm not making fun of that. I mean, I am making fun of that, but like, I'm not making fun of that if it works for you, but I also know that it wouldn't work for me. But gratitude has been shown to positively

improve mental health and well being. So if you want to create a gratitude or just have a little piece of paper beside your bed. I bought a gratitude journal actually at Kiki k And instead of it being like heaps of pages of empty paper, it's like five little dot points each day and it starts the sentence for you, which I find really helpful because I'm not that good at journaling without prompts. Yeah, so that was really helpful.

And if you create a journal and write down five things that you're grateful for every day, it can reframe your life. Literally. The other thing I want to say this is like share them with your partner, share them with a friend, call your mum, call somebody that you care about, and share them and create that accountability. Because Beck, if you and I live together, which would be elite by the way, because I'm a really big cook and you bring the vibes like that would be really good.

But if you take those five things and every single day I have an accountability that all right? Every day Beck and I tell each other our five things, do you know what you start doing? You start looking for more?

for more positive things to share. So if I know or I have to take five positive things home to tell beck about tonight, I'm just looking for positive things all day. And the more you start looking for things, the more they start appearing. And this goes back to that manifestation conversation we're having the other day where I said, I don't particularly believe in manifestation because it's all about

what you're looking for and those things showing up. And I use the example of the bright yellow Honda Jazz, like, if you think about that as a car, I can't remember seeing one, But if I start telling you to look for one, you're going to see more of them, right, Yes, confirmation by exactly. And so the more you're looking for positive things and the more you have some level of accountability to deliver five or it could be one, like

let's just start with one. I need to share the most positive thing that happened today with Beck when I get home instead of going, oh, Beck, how's your day? Oh yeah, Oh my gosh, it was the most stressful thing. Stop talking about that. What was the best thing about your day? Back and you're like, oh, okay, well Victorias knuckout of this recording studio and stole a kick cat for me and brought it back. That was pretty late.

self help podcast. It absolutely shouldn't be. The Next thing I want to talk about is recognizing the possibilities. Again, this feels like a little self help kind of book. I'm not mad about it. Watch out. Brene Brown we're coming for you.

It is crazy. The same thing happens with opportunities. So if you have your head in the sound, you're like, oh, jobs never come up, bab, You're probably not looking for them, Like you don't have your eyes open, you're not looking for them. But if you start looking for them, I promise they appear in abundance. It is crazy. And then the last thing I'm going to say here is the tunnel vision caused by scarcity mindset actually means other important

things end up falling by the wayside. So start escaping that little tunnel you've created by organizing your time or automating some tasks that might actually help you build an abundant future. So that might be actually setting up an auto invest program. So you might have decided to invest, but instead of having to do that each and every single month, you might just set up a direct debit on your app and go all right, well I'm going to do this. I'm just gonna set and forget. This

makes sense. This actually puts me in the best possible position. Does that make sense?

of psychology, and it's really about reframing a circumstance. And the way I learned about it was in reframing questions to potential clients as a psychologist, where you know they might say something and you want to continue the conversation, but you don't necessarily have a question, so you reframe it and go, Wow, Beck, you just said that you're negative about XYZ, and you kind of reframe what they've just said, so one they feel heard, but two they

might elaborate on it from a different perspective, So you might have had a negative take and I might reframe it in a positive light and be like, oh, but it might not have all been bad right, and you go, oh, yeah, well actually, and you might open up about a different facet of that experience that you're explaining to me, because the job of a psychologist isn't actually to just tell you the answers. In fact, the answer has always come

from within the client. So it's about reframing it so that maybe you see it from a different perspective and go, yeah, actually, I hadn't thought about it that way, Victoria, Well, actually my mum used to it. Does that make sense to reframe the question. So the idea is that the frame through which a person views a situation really determines their point of view. So they might have rose colored glasses

on it everything is hunky dory. They might also have their sunglasses on inside, which makes everything look a little bit darker than it needs to be, and you might want to be like, oh, hey, have you tried these yellow lenses? Like what if we have a look at it from here? So imagine looking through a camera lens.

The picture you see can actually be changed depending on what sunglasses you're wearing and what camera lens filter that you put on, or what Instagram filter is on that picture, or what's the beauty filter on TikTok, Like I swear that is not helping anybody else, but by slightly changing what is seen in the camera, the picture is both viewed and experienced differently, And this is really positive if we're changing our mindset, because you can go, oh, I

do see that really negatively? What are some tools I eat glasses that I could put on that help me start to see it differently? But it can also change things to negative, right, And this goes back to again I mentioned TikTok. I genuinely feel like the TikTok beauty filter is giving people unrealistic standards of what beauty actually looks like because it's automatic and you just go, wow, there's so many beautiful people on my feed. I can't believe these people always look that good or their skin

is always that perfect, etc. Etc. And that is the way you're viewing that circumstance. It's the lens that has been put on that situation, which then determines your point of view. And I think that that is actually a really good example because it's the same as your outlook. So when the frame is shifted, the meaning changes and the thinking and the behavior often changes along with it.

So if you can literally put the glasses down or take your sunglasses off while you're inside and maybe put some rose colored or so maybe like yellow tindered ones, they don't look that hot on, but that is okay. I think that that can actually put you in a better position, and choosing to reframe can actually be can be exhausting, like I learned it at university, because it is something that you need to practice and learn. It is not something you can be like, oh yeah, cool,

I learn on the podcast about reframing. I now do that all the time. You have to work out it, you have to consistently change it because your mind, as a human being is automatically negative. Like that is human nature. And the reason it is human nature is because we used to be cave people and leaving the cave was a risk. Leaving the cave was a risk. Yeah, we

needed food, but it was the risk worth it. Yeah I'm pretty hungry, but also there's bears and stuff out there, and automatically, as a survival instinct, we are negative because the negative actually protects us. And if you grew up in a scarcity mindset, then being negative protects you, right, Like even going don't worry. I'm not going to ask mum for that. That's not worth It is going to translate into you being an adult who doesn't want to

spend money on stuff because it gives you anxiety. You're evasive of it. So I think it's really important to understand how that can actually impact you and what that means and choose to reframe it. But that is going to be work. I'm not going to put my rose

colored glasses on and be like it's so easy. It can be, But that's why we want to have maybe a daily task of sharing something we're grateful for, or having a gratitude journal, or having something that can put us in that perspective where we're going, all right, I'm moving from scarcity mindset to this, or even just reflecting on your own interactions that day and going wow, like that was negative. How could I have approached that differently,

or how would I approach that? To feel like I'm being my best self in this circumstance, I think can actually be really really helpful. And I guess to summarize all of that, the second you can start reframing the way you view investment and how that works. The second you can start creating the financial freedom that I know

you all deserve. And I think so many of us limit ourselves because of our ex experiences or our upbringing or the way that we view things, and that might not actually be reality.

we make our way through the world. But it's now twenty twenty three and we live in this world of abundance and you can create anything you want, but we've actually got to lift that mindset up and put this other mindset on if you actually want to be successful in that realm.

I want to see them. If Facebook's not your thing, you and also find us and tag us in your jazz pictures on Instagram. And we're also on TikTok. I mean, I'd love to see a TikTok of all the Honda jazz Is that you saw that were yellow this week. And as always, please don't forget to rate, review and subscribe. It really does help our little podcast. But we will see you on Friday, my friends, have a good day.