Whether it’s saving for retirement or taking an inventory of our wardrobe, most of us have asked, “Do I have enough?”
I’ve experienced this mentality in my own life. Chances are most people have experienced this thinking as well.
Or maybe instead of asking the question, you find yourself making a statement: “I don’t have enough” or “I never have enough.” Here are some related refrains that can poison our financial mindset:
“There are never enough hours in the day.”
“I don’t make enough to save for retirement.”
“I don’t have enough to be grateful for.”
“My house isn’t nice enough for our family.”
“No matter how many promotions I get, it’s never enough.”
Each of these statements stems from the “Do I have enough?” mentality. And this doesn’t even begin to account for the rat race that ensues from attempting to keep up with the Joneses.
While there is nothing inherently wrong with taking an honest inventory of our financial standing, this is a slippery slope to the scarcity mindset. Do I have enough? is a terrible question that masks the practical, objective steps we can take to improve our financial health.
[article post=”1″]Unfortunately, the question of enoughness tends to permeate the way we handle our budgets. Let’s examine why this is a terrible filter, then look at a healthier alternative.
This isn’t just theory. There is actual scientific evidence that a scarcity mindset can cause your financial situation to deteriorate. A study published in the Proceedings of the National Academy of Sciences (PNAS) found that a scarcity mindset changes our neural processing capabilities.
The researchers took a functional MRI of two groups: the first had an abundance mindset, and the other had a scarcity mindset. The participants were asked to pay for familiar food items while fully embracing these mindsets.
What did the researchers find?
Those with the scarcity mindset had a measurable decrease of activity in the dorsolateral prefrontal cortex. This is the part of the brain that plays a role in goal-directed behavior and decision-making.
In other words, the psychology of scarcity destroys our ability to reason clearly when making financial decisions. People’s minds are less efficient when they feel like they lack something. They don’t even have actually to lack finances or resources. The feeling of deprivation is enough to alter our neural pathways in negative ways.
By asking whether or not you have enough, you may be unintentionally fueling a scarcity mindset that could wreak havoc on your finances.
One of the main reasons people ask whether they have enough is because they are wondering how they stack up against their peers and neighbors.
Have you ever felt caught up in comparisons? It’s human nature. We compare paychecks, house size, vehicles, and where our kids go to school. Why do we constantly find ourselves trying to impress people who likely aren’t even paying or have their own things to worry about?
[article post=”2″]If you’ve ever run a marathon or any type of road race, you may have heard the saying, “Run your own race.”
Whether you are attempting to qualify for the Boston Marathon or simply want to finish the race, you have your own goals that are important to you. But if you attempt to race the runner next to you, you might find yourself burning out sooner than anticipated.
Similarly, why try to keep up with the Joneses when their goals might not even be your own? In fact, the Joneses might not even be as well-to-do as you think.
Nearly 63% of Americans say they live paycheck to paycheck.
Only 39% of Americans can cover a $1,000 unexpected expense.
15% of Americans have nothing saved for retirement at all.
An estimated 64% of Americans will retire broke.
Given these latest stats, do we really want to be like the Joneses? If you’re reading this blog, I highly doubt it. Just like a seasoned marathon runner, I encourage you to focus on your own financial race and financial goals.
When we stay laser-focused on our financial goals, we are more likely to pay ourselves first and save for the future.
But the moment we view finances through the lens of enoughness, we are tempted to:
Of course, treating yourself is nothing wrong, especially when that treat is built into your budget. But personal waste is one of the top reasons many budgets are upside down.
If we waste less money, we are able to put more towards retirement, more towards savings, and better meet our financial responsibilities. The best part? You may find yourself stressing less about finances.
It’s clear that the mantra of “Do I have enough?” can do more harm than good. So what is a healthier and more responsible alternative?
[article post=”3″]Rather than asking whether you have enough, consider asking yourself these questions instead:
Do you struggle with enoughness and the idea of keeping up with the Joneses? If so, what are some tactics you use to make sure you run your own financial race and no one else’s? I’d love to read your ideas in the comments section below!
You must be logged in to post a comment.
This is a fantastic article! I feel down the rabbit hole reading more related Articles! I love your blog!
💙💜💙
Great article! I subconsciously and sometimes consciously think this, but I ask myself the two questions “Do I need this? Can I afford this?” all the time! I have just never asked myself the last two questions and for that reason we are still struggling after 2 years of your program. I am at my wits end. I know it us and not you program. I am so tired and frustrated.
Believe it or not, my word for the year is “enough”. As in, I am enough, I have enough, and I’ve had enough of the status quo. This was a very timely article to help get me back on track and keep me there. 💕😊💕
Well, that brain reaction to scarcity clearly explains the pandemic hoarding and grocery runs. I can see how people think if I just get that one thing…be it clothes, car, house or whatever, I will be and have what I need. The trouble is, the cycle doesn’t stop. They will constantly play what they think is catch up. I am pretty discipline with my money, esp now being divorced midlife. I do find sometimes I get into that mind set and have a deep breath and stop for a minute. Do I really need to get this item, will it actually enhance my life? If yes, then I go for it, if no, I stop.
I so look forward to reading your emails every Friday!!!!❤️💙❤️🎉
First, let me say what a GREAT JOB YOU HAVE DONE to get yourself to where you are now! I can only imagine in the beginning how hard it was. I send your blog to a lot of my family members. Keep up the great job of encouraging your readers.
I love your third question to ask yourself, “What is the real cost of this?” Sometimes I like to look at big purchases in terms of time. I view the price and then do the math to figure out how many hours I will have to work to make this money. Oftentimes, I find myself deciding that something is not worth that many hours of my day/week/month.
Keeping up with the Joneses is something I see in our neighborhood all the time. People will do things to their house just because someone else did.
I belong to small a FB Group, partially named “Give/Ask”. The point of this group is to offer things from our hearts, which we no longer need… or to ask for something we need, but do not have or cannot aford to buy new, or may just want to borrow (a rototiller, a chainsw, a tent). No money is exchanged. This network is built purely on trust and generosity. We have assembled a spiderweb of compassionale neighbors who have done such things as saving strofoam shipping coolers from the landfill (they can be used for shipping glassware, or building cat igloos for ferals), rehoming food and seeds that have passed their “best by” date but are still good, clothing in good shape, gift cards given to us that we will never use, etc. We have all decided not to struggle with “enoughness” anymore, and to share from our hearts.