🚫 This Might Be the Thing Keeping You Stuck — And How To Overcome It

You’ve probably heard of the scarcity mindset. It’s that voice in your head saying, “There’s not enough time, money, or chances, so don’t mess this up.”

It sounds smart. Safe, even. But what if it’s the very thing keeping you stuck?

Let’s break it down and learn how to move past it.

In today’s edition, we’ll go over:

• What is a scarcity mindset, and do you have it? 

• 5 Powerful Tips on how to break free from it

• My favorite sources to learn more

TLDR;

The Bottom Line

• A scarcity mindset makes you prioritize short-term over long-term gains.

• Correcting a scarcity mindset is important in your financial journey. Not doing so is like swimming upstream. 

• To overcome a scarcity mindset: get crystal clear with your finances, save with intention, invest in yourself, practice generosity, and slow down.

The content

What is a Scarcity Mindset?

A scarcity mindset is a psychological pattern where you focus more on what you lack, rather than what you have.

Noticing what you don’t have is not necessarily bad (given the right doses, it spurs us to growth). However, it becomes unhealthy when there’s an obsession, an automatic leaning to seeing the glass half empty.

Scientific Definition:

“Scarcity is not just a physical constraint. It changes how we think. It impairs cognitive function and decision-making.”

— Mullainathan & Shafir, Princeton University Press

The problem with this mindset is it creates a tunneling effect. It makes us myopic. We overvalue immediate benefits and undervalue future ones. We wait to save until we have a bigger salary. We delay medical checkups because they’re too expensive but then chug down 2 bottles of Red Bull to make it through the workday. 

Why should you care?

This newsletter does not intend to undermine any financial troubles you’re going through, nor does it try to sit on a moral high horse.

No. We know how hard these times are. Salary increases can barely cover inflation.

What we’re advocating here is a little shift in your mindset. When you’re in scarcity mode, it’s hard to see opportunities even when they’re staring you in the face. 

Chasing your dreams and goals is already hard as they are. You can’t afford your mind to be working against you.

Ted from How I Met Your Mother famously said, "You can ask the universe for signs all you want. But ultimately we only see what we want to see when we're ready to see it" — he was right.

Abundance can’t stay in your life if you’re not ready to see it.

Do you have a Scarcity Mindset? 

“Can’t”, “not enough”, “later”, or “only one chance” – are these phrases constant in your vocabulary? If you answered, yes, then you might have a scarcity mindset. 

The key thing here is to notice when the scarcity mindset is present, then take a step back to reframe the situation. 

Why should you care?

How to Break Free from a Scarcity Mindset

1) Scarcity is a Mental Habit, not a Financial Reality

It’s a pattern of thinking, not a currency amount. 

You can be the richest man on the planet and nothing would still feel enough. Conversely, you can have 0 pesos in your bank account and still feel like you’re on top of the world. 

What you can do: Learn to differentiate your actual financial situation versus the emotional story you’re telling yourself. Get clarity. Track your income and expenses honestly. Use the numbers to guide your decisions, not the fear. 

2) Save with an End in Mind

Saving is good. But if we’re saving out of anxiety rather than as a positive habit, then we’re still trapped in scarcity thinking. 

While building an emergency fund is essential, saving only for rainy days reinforces the belief that we’re not safe. Plus, it makes saving feel like a chore. Building wealth should be fun. 

Savings should be fuel for your dreams, not your fears. 

What you can do: Set clear, measurable goals for your savings (e.g., 6-month emergency fund, travel, payment for a house or a car). Purpose gives you power.  Fear keeps you stuck.

3) Invest in Yourself

In your early career, you may be tempted to stay in a job or environment that feels secure even when you’ve outgrown it. That’s scarcity at work, convincing you that change is too risky.

But real stability comes from your skills, not your paycheck. The more you grow, the more valuable you become, and the more opportunities you’ll attract.

What you can do: Invest in yourself consistently. Take courses, network, and stay open to new roles. Expansion, not contraction, is how you build wealth.

4) Be generous (even in small amounts)

Generosity signals abundance. Being generous isn’t about grand gestures. It’s about training your mind to believe you have more than enough to share.

What you can do: Consider giving a certain amount of your monthly income to advocacies or people you care about. If you can’t give in pesos, share your time or skills instead. Volunteer in a feeding program. Help a friend organize her birthday party. Giving without expecting anything in return shifts your energy. 

5) Slow down. You have time

A scarcity mindset breeds the fear of running out of time. When we feel rushed, we often make poor decisions. This makes us more susceptible to get-rich-quick scams, fall for gimmicky Shoppee sales, or overcommit on projects or appointments (leading to burnout). 

Remember, building wealth is not a sprint. It’s a marathon. 

What you can do: Block off at least an hour every day for a hobby —reading  crime novels, learning the guitar, or journaling. By mindfully slowing down, we create space for self-reflection, creativity, and rest - all of which lead to better life and financial decisions.

Final Thoughts

Scarcity is not just a belief about money. It’s a belief about yourself and your ability to create, attract, and handle opportunity. 

Stuff Worth Sharing

The Link Lowdown

Millionaire Mindset: The Simple Habits And Thinking Behind Money, Wealth, and Success - Title is self-explanatory

Naval Ravikant on How to Get Rich (without Getting Lucky) - There’s also a podcast version here. It’s 3 hours of pure wisdom from one of the most prolific founder and investor in Silicon Valley.