The Myth of the Money Tree and the Dangers of Scarcity Thinking

“Money doesn’t grow on trees.” We have all heard it. The phrase, handed down from generation to generation, serves as a reminder to be cautious, sensible, and frugal. But have you ever stopped to wonder about the underlying implications of this statement and the way it negatively shapes our thinking about wealth and opportunity?

At a superficial glance, the phrase simply implies that money requires effort to obtain. However, when we dig deeper, we find a hidden narrative of scarcity that can become deeply embedded in our psyche. This money script convinces us that resources are limited and opportunities are rare. As a result, many potential investors operate under a self-imposed limitation, often missing out on chances to create wealth.

The Power of Perception

Take a moment to consider the implications of a mindset driven by scarcity. When opportunities arise, they are viewed with suspicion. Risks become magnified, paralyzing potential actions. In the world of investing, this can mean missed opportunities and stagnation.

Contrast this with a more expansive viewpoint: “Money is everywhere.” This mindset sees opportunities in abundance, encourages exploration, and fosters a belief that the world is full of potential. It moves individuals from a reactive stance to a proactive one.

The “Money is Everywhere” Jar

One innovative and practical exercise to break free from the confines of scarcity thinking is the “Money is Everywhere” jar. The premise is simple: whenever you find or earn money outside your regular sources of income, it goes into the jar. This could be the coins you see laying on the ground, perhaps a $5 bill you found in an old jacket, a refund check you weren’t expecting, or even a side gig you picked up for fun.

Over time, this jar serves as a visual representation of the idea that opportunities to earn and find money are plentiful, if only we tune our senses to perceive them.

Retraining the Brain

Other than the jar, there are several activities that can be used to reshape one’s thinking:

  1. Gratitude Journal: Every day, write down three financial things you’re grateful for. This shifts the focus from what you lack to what you have, fostering a mindset of abundance.
  2. Networking: Regularly engage with people from diverse fields. Different perspectives can open your eyes to new opportunities.
  3. Educate Yourself: Reading books and articles on positive money management and investing can expose you to successful mindsets and strategies.
  4. Visualize Success: Spend a few minutes each day visualizing your financial goals as already achieved. The brain often can’t distinguish between reality and imagination, which can help cement a more positive outlook. One way to do this is to create a vision/goals board.

Final Thoughts

While the old adage reminds us that money doesn’t grow on trees, it’s crucial to realize that the forest is vast, and opportunities abound. By shifting our perspective and actively challenging the scarcity script, we can tap into a world brimming with potential, where money may not grow on trees, but it certainly is everywhere.


References:

  • Klontz, B., Kahler, R., & Klontz, T. (2008). Facilitating Financial Health: Tools for Financial Planners, Coaches, and Therapists. National Underwriter Company.
  • T. Harv Eker. (2005). Secrets of the Millionaire Mind: Mastering the Inner Game of Wealth. HarperBusiness.
  • Dweck, C. S. (2006). Mindset: The new psychology of success. Random House Incorporated.

Avery Rock Financial, LLC is a registered investment adviser.  The information in this material is for educational purposes only, is not intended to predict or guarantee future market performance, and is not intended to act as individualized tax, legal, financial, or investment advice.  Data contained herein from third-party providers is obtained from what are considered reliable sources.  However, its accuracy, completeness, or reliability cannot be guaranteed. Please consult a qualified attorney or tax professional for individualized legal or tax advice. Please contact a financial advisor for specific information regarding your individualized financial and investment planning needs.