The scarcity mindset revolves around the idea that there simply isn’t enough to go around. There can be only one raise at work and if one person gets it, everyone else can’t have it. My paycheck only has a certain amount of money in it and if I don’t spend it now, it will “go away” – the “man” will take it. If I don’t party now when I’m young, I will never have the chance to party later.

Thus, the scarcity mindset always focuses on the extreme short term of every decision. What is the most fun option right now? What uses up the resources I have right now so that they can’t be taken away later?

It ignores the long term of every choice, too. The most fun choice in the short term often has long term consequences. If you spend all of your paycheck this week, how will you have anything for the future?

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