The first time I really engaged with the idea of finite resources was from an unlikely musical source.
In my introduction to economics course, the professor chose to discard the cliche Merriam-Webster method of defining an abstract topic in favor of The Rolling Stones. The song choice for the definition? “You Can’t Always Get What You Want,” specifically the lyrics:
“You can’t always get what you want. But if you try sometimes, you just might find, you get what you need.”
Now, there are many theories about what this song is actually about, rooted more in the issues of that time period. But it is a unique way to look at supply, demand, and scarcity.
Ultimately, my professor was trying to capture the idea that we always have some sort of scarcity driving our decisions. We have a finite amount of some resources, and other resources, such as time or energy, may constrain the less finite resources.
While scarcity of resources is a normal piece of the economics equation, scarcity mindset is another level beyond what’s normal. In fact, it even shows up on WebMD.
So what is scarcity mindset? And how does it impact us in a way that can hold us back?
First, let’s cover the basic definition of scarcity mindset:
A scarcity mindset is a way of thinking that focuses on perceived lack or limitations, leading to feelings of anxiety and competition and potentially hindering growth and well-being.
This shows up in our financial lives in many ways. But it commonly fuels decisions where we under-consume despite having more than enough money. Let’s explore this deeper.
Like many things, scarcity mindset is in our DNA, tracing back to our hunter-gatherer ancestors. Without the modern conveniences we know and depend on, survival in those times required intense focus on immediate needs like food, water, and shelter. The drive to fulfill these short-term needs—regardless of long-term consequences—was a necessary adaptation. After all, long-term planning is irrelevant if you can’t survive the next few days.
But in today’s world, that same short-term, scarcity-driven thinking can backfire, causing us to make reactive, short-sighted decisions and prioritize perceived immediate needs over thoughtful, long-term planning.
As I learned in my introduction to economics, time is often the resource that constrains all others. Here’s how the scarcity of time can show up in our financial decisions.
When we’re strapped for time, we can often place convenience ahead of the most optimal solution.
Think about fast food. It’s not usually the healthiest or most cost-effective dinner choice. But it sure is convenient (until your delivery order takes 90 minutes to get delivered).
Here are some examples specific to financial planning.
As a financial advisor, I find myself paying particular attention to this set of reasons related to time scarcity. How often have you found yourself saying, “I’ll get to it later” when it comes to an important decision or action you know you need to do?
Here are some specific examples:
When time is especially scarce, spending decisions can become reactive rather than strategic. We can fall into the trap of thinking money can replace the lack of time.
This can result in things like:
It seems silly to think that people who have plenty of financial resources can and do experience a scarcity mindset. But it happens, and perhaps more frequently than we might think.
Yes, people who are well-off financially, even high earners with significant financial security, can experience a scarcity mindset when it comes to money.
This scarcity mindset among those with ample financial resources often manifests in three ways.
Even with high incomes, some people fear running out of money and stockpile cash instead of putting it to work through investing. We probably all know someone who keeps cash under a mattress or hidden in their house.
But even if you’re not physically stockpiling money, you may be falling into these traps:
Americans have some of the worst work-life balances in the developed world, and our constant pursuit of productivity and income can contribute to the scarcity mindset.
Some people continue frugal habits they developed early in their careers, when they made far less money, even though they’re in a far different financial situation.
Here’s what that may look like:
How can we shift from a scarcity mindset to a more strategic, abundant approach to money and time?
One of the most effective ways is to work with a financial advisor who not only helps manage your investments but also acts as a strategic partner. This type of dual-faceted advisor can help you see the big picture, stay on track, and make thoughtful, proactive investment decisions.
As part of working with a financial advisor, here’s how that shift can take shape:
With a trusted advisor, financial check-ins become part of your routine—not something you scramble to address at the end of the year.
Whether it’s time, money, or energy, scarcity can cloud even the best financial judgment. For some, the challenge isn’t a lack of resources. It’s navigating complexity while balancing career, family, and life.
Working with a financial advisor who specializes in both planning and investment management helps you zoom out, see the full picture, and make confident decisions rooted in strategy rather than scarcity. When you stop chasing and start planning intentionally, you can build a life that’s not just financially successful but also deeply fulfilling and sustainable.
At Ametrine Wealth, we help clients overcome financial obstacles, such as a scarcity mindset, to capture their full financial potential. To learn how we can help you, schedule a complimentary consultation here.
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About the Author
Carla Adams is a CERTIFIED FINANCIAL PLANNER® practitioner who specializes in helping women build strong financial plans around their equity compensation, including Restricted Stock Units (RSUs). With over 15 years of experience in financial services, Carla has in-depth knowledge and expertise geared toward helping clients with complex financial situations. She enjoys boiling down complicated scenarios through practical examples and down-to-earth conversations.