{"id":8233,"date":"2022-08-09T18:19:34","date_gmt":"2022-08-09T17:19:34","guid":{"rendered":"https:\/\/cowrywise.com\/blog\/?p=8233"},"modified":"2023-07-25T12:03:12","modified_gmt":"2023-07-25T11:03:12","slug":"switch-from-poverty-mindset-to-wealth-mindset","status":"publish","type":"post","link":"https:\/\/cowrywise.com\/blog\/switch-from-poverty-mindset-to-wealth-mindset\/","title":{"rendered":"How to Switch from a Poverty Mindset to a Wealth Mindset"},"content":{"rendered":"\n

Have you ever been accused of having a poverty mindset? Or a poverty mentality? How did that make you feel? Not good, right? Did it get to that point where you wanted to \u2018fake\u2019 your way out of it? Maybe if you act rich, walk rich, and think rich, no one will know you were not rich. Or you will<\/em> actually become rich? I am sure that also did not work. But what exactly is a poverty mindset? Is it that all poor people are born with a different mindset or is this something you develop as you grow in the cocoon of lack and poverty? If having a poverty mindset is such a bad thing, how do you leave it behind and reorient yourself towards a wealth mindset? <\/p>\n\n\n\n

What is a poverty mindset\/mentality?<\/strong><\/h2>\n\n\n\n

People usually invoke the term \u2018poverty mindset\u2019 when you\u2019re always looking for free things or trying to avoid spending at all costs. While this may be true, it does not summarise what it means to have a poor mindset. Alan Weiss, PhD described<\/a> the poverty mindset as \u2018one that influences behaviors consistent with beliefs that money shouldn\u2019t be spent, opportunities are limited, any risk at all is dangerous, any success is temporary and non-replicable, and generally remaining in the back of the pack is safest.\u2019<\/strong><\/p>\n\n\n\n

Poverty mindset is living in scarcity and in fear that there will never be enough. It is living in fear that things will never work out, that even what you have now can be taken from you at any moment and that wealth is beyond your reach. It is holding on to the belief that some people are already born into wealth and the rest are doomed to suffer the woes of poverty<\/a> for life. <\/p>\n\n\n\n

This is closely linked to a scarcity mindset which displays itself in certain ways, like holding on to things you no longer need. Remember all those possessions your parents can\u2019t seem to let go of even though they no longer need them? Yes, a scarcity mindset, which is borne from a poverty mentality, could be the cause of that. <\/p>\n\n\n\n

Also, if you are always scared of taking financial risks<\/a> or you always look for quick ways to \u2018cash out\u2019, that could be a poverty mindset right there. <\/p>\n\n\n

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Why is the poverty mindset so bad?<\/strong><\/h2>\n\n\n\n

When people say \u2018you are poor only because you choose to be\u2019, that may not be so accurate but they have a point. When you have the mindset that you can never be rich, you will find yourself doing the same things that will keep you poor. You won\u2019t be bold enough to take risks, so investments won\u2019t be an option for you, even low-risk investments. That means you\u2019ve shut the door on one big way of building wealth. Also, when you have a poor mindset you realise that you shield yourself from wealthy people. You may even find yourself blaming wealthy people<\/a> for your own poverty. This again is another reason why one may never get out of poverty. <\/p>\n\n\n\n

Having a mindset that is fixated on poverty and scarcity precludes you from the opportunities that may present themselves as your get-out-of-poverty card. It also puts you in a state of hopelessness where you\u2019ve made your peace with where you are already and you no longer strive to get out. <\/p>\n\n\n\n

And perhaps the worst thing a poor mindset can do to you is make you believe money is a scarce commodity. As Olabinjo Adeniran, the founder of Future Africa said in one of our interviews<\/a> with him, \u2018money is far more abundant than most people know or can grasp.\u2019<\/strong><\/p>\n\n\n\n

The other side of a poverty mindset: the wealth\/abundance mindset<\/strong><\/h2>\n\n\n\n

Alan Weiss PhD describes a wealth or abundance mindset<\/a> as \u201cone that assures you that you are successful and can replicate that success, you have value and talents in strong demand, and you can handle most situations that come your way very successfully. (And those times you can\u2019t, you\u2019re resilient and bounce back quickly.)<\/p>\n\n\n\n

Does it sound a lot like positive thinking? That\u2019s because it is. A poor mindset is all about negativity. It is about impossibilities and the things that can\u2019t be. An abundance mindset on the other hand screams optimism and possibilities. It pushes one to do a lot and go for the wealthy life they desire because they believe, unlike those with a poverty mindset, that they can have it if they work for it. <\/p>\n\n\n\n

Learn more about the optimist money personality type<\/a>.<\/p>\n\n\n\n

How to spot a poverty mindset<\/strong><\/h2>\n\n\n\n

When you notice any of these traits in a person, there is a high chance that they are operating with the poverty mindset:<\/p>\n\n\n\n