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I think you’re making a false comparison. Growth mindset is a separate thing entirely. “Growth” versus “fixed” in terms of ability to change your thought patter

I think you’re making a false comparison. Growth mindset is a separate thing entirely. “Growth” versus “fixed” in terms of ability to change your thought patterns. It’s “scarcity mindset” vs. “abundance mindset”. In terms of ability to gain resources. A scarcity minded person, such as myself, thinks that they should build extra buffer and not spend their resources, in case they need them in the future. If things go south, you might not be able to make money, so you should have extra somewhere to weather the storm. Resources flowing to you could become “scarce” (in your mind), so you’re cautious. An abundance mindset person believes that they’ll always be able to find extra somewhere. They don’t need a big savings account because they’ll be able to figure out a way to make money, no matter the circumstance. Resources flowing to you are “abundant” (in your mind), so you are more carefree. Neither is bad, they’re just different. If you’re older but still tucking away money and trying to not spend too much, etc, then you still have a scarcity mindset (like me). I personally don’t know if my career will go away in the future, so I’m trying to build a nest-egg to be self sufficient regardless of my work, even though I have plenty of money in my budget to not think about it

warner25 3y ago
This is a good explanation. I think the word "abundance" is more fitting than "growth." I also like how you frame it as someone with an "abundance mindset" possibly being wrong, foolish, etc. to think that they can always get more resources whenever they need them. When I've seen this written about before, it really seemed like it was framing the "scarcity mindset" as being wrong; like the person with that mindset is just obviously leaving so much (money, pleasure, etc.) on the table. > If you’re older but still tucking away money and trying to not spend too much, etc, then you still have a scarcity mindset This does seem to become something of a problem when people earn and save prodigiously so that they can retire, but then never feel comfortable enough to actually retire and start spending down their savings. I don't want to be "the richest guy in the graveyard," dying at 80 with an 8-figure net worth (in today's dollars), but I see how that can happen.
- steveBK123 3y ago
  Neither is more right/wrong in a general sense. Either in their extreme can be "wrong". It also has impacts on how your kids turn out to relate to money later. My wife and I were the oldest child of scarcity mindset parents. For both of us it turned into a motivator to "not have to think about money" on the income side. For me, the worst thing in the world was when I had to ask my parents for money, it was emotionally draining. I haven't asked my parents for a penny since I turned 20. They are generous in gifting money/things at time/place/amount/reason of their choosing, but I never wanted to have to ask again. It drove me to want to have cashflow, and I started working when I was 14 under the table, officially W2 summers/weekends/after school from 16. I've really never stopped working, been doing my own taxes since I was 16. My wife ended up with almost 6-figures of college debt ~20 years ago because her parents contributed very little & were sticking to a very strict budget to payoff their mortgage in under 15 years. After paying off the mortgage and retirement, they became much more generous. They bought themselves several (cheap) vacation homes and investment property. The impact on her though in her 20s was to feel very resentful of them for some time, fair or unfair as that is.

warner25 3y ago

This is a good explanation. I think the word "abundance" is more fitting than "growth." I also like how you frame it as someone with an "abundance mindset" possibly being wrong, foolish, etc. to think that they can always get more resources whenever they need them. When I've seen this written about before, it really seemed like it was framing the "scarcity mindset" as being wrong; like the person with that mindset is just obviously leaving so much (money, pleasure, etc.) on the table. > If you’re older but still tucking away money and trying to not spend too much, etc, then you still have a scarcity mindset This does seem to become something of a problem when people earn and save prodigiously so that they can retire, but then never feel comfortable enough to actually retire and start spending down their savings. I don't want to be "the richest guy in the graveyard," dying at 80 with an 8-figure net worth (in today's dollars), but I see how that can happen.

steveBK123 3y ago
Neither is more right/wrong in a general sense. Either in their extreme can be "wrong". It also has impacts on how your kids turn out to relate to money later. My wife and I were the oldest child of scarcity mindset parents. For both of us it turned into a motivator to "not have to think about money" on the income side. For me, the worst thing in the world was when I had to ask my parents for money, it was emotionally draining. I haven't asked my parents for a penny since I turned 20. They are generous in gifting money/things at time/place/amount/reason of their choosing, but I never wanted to have to ask again. It drove me to want to have cashflow, and I started working when I was 14 under the table, officially W2 summers/weekends/after school from 16. I've really never stopped working, been doing my own taxes since I was 16. My wife ended up with almost 6-figures of college debt ~20 years ago because her parents contributed very little & were sticking to a very strict budget to payoff their mortgage in under 15 years. After paying off the mortgage and retirement, they became much more generous. They bought themselves several (cheap) vacation homes and investment property. The impact on her though in her 20s was to feel very resentful of them for some time, fair or unfair as that is.