📝Budget

Abundance Mindset vs Scarcity Mindset

Abundance
Scarcity

the belief that there is plenty for everyone including yourself.

the belief that there is limited resources for everyone

You appreciate what you have

You become fixated on what you lack

You focus on growing yourself

You also struggle to focus on other stuff

How to change from scaricity to abundance

  1. Take inventory of what you already have

  2. Stop comparing yourself to others (Comparing will make you unhappy)

  3. Focus on growing and being your best self/your best version

  4. Use affirmations ("I am capable")

  5. Surround yourself around supportive people/mentors

One way to distribute your money

  1. Have an emergency fund (Priority before savings) (Minimum: $1000, or 3-6 Months of Expenses covered)

  2. Rent, Food (50% of your total budget) (Sometimes renting is cheaper than owning a home)

  3. Investing (20-35%)

  4. Savings (5-10%) (401k, Roth IRA, HSA health account)

  5. Down payment for a house (5-10%)

  6. Guilt free spending (Leftover) (Travel, Restaurants, Entertainment, etc.)

It is very beneficial to plan meticiously like with traveling Example: If you travel, ideally plan the following ahead of time: - What food/places will you eat at? - What airlines and seats will you get? - Who is coming with you? - What hotel are you getting? - What car rental will you get?

More Tips

  1. Wait 48 hrs before a big purchase to see if you really want it (This helps to avoid impulsive buys)

  2. Consult a financial advisor for investments and free up your time

Sources:

  • 2023 ColorStack Summit Presenter

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