Captivating article topic, isn’t it? So, you’re expecting a long flow of debate, a panel of judges, debaters for and against and all that conventional procedures.
Sorry if this is quite unlike what you expected but today is not exactly debate day.
Today is for insightful and in-depth discussions on the concept of abundance vs. sufficiency, particularly as it relates to the financial niche.
These are concepts that require just more than vague debates but a deeper reflection even as we surge forward towards financial growth.
What exactly do we understand by abundance and sufficiency? Do they appeal to our sense of understanding as different terminologies or as the same thing? For once, let’s take a voyage towards conceptual clarifications.
Abundance: This is a way of saying that something is more than enough. The term abundance has been used to refer to something that exists in plentiful, more than necessary, quite excessive and at times beyond control.
Abundance is a word that gets thrown about a lot in the self-help/motivational circles. And some folks, in wishy-washy attempts to become wealthy swear that simply having an “abundance mindset” is the key that unlocks fabulous riches. Of course, it takes more than that.
You can’t just sit on your butt all day thinking “abundantly” and expect to make the Forbes list.
Sufficiency: This is a word used to express that something is exactly enough, often used interchangeably with adequacy.
Particularly as it relates to personal finance, abundance is having more than you need. This is a state of having so much money and material resources well above what you actually need at the present.
On the other hand, to be sufficient with regards to personal finance means that you have just the money and material resources you need. In other words, you do not have so much as to permit reckless extravagance but just enough to sustain you and all your needs with appropriate frugality.
How then can we navigate through abundance and sufficiency in a way that we get just the best out of them for our financial growth?
Think Abundantly and Live Sufficiently
The best way to grow from nothing to something financially is to master the art of thinking abundantly and living sufficiently.
Here’s what you need to know.
The mind is the most powerful tool of a man.
We are an absolute reflection of what we think about and everything proceeds into creation from the utility of the mind.
There’s a popular saying ‘aim for the moon and even if you miss you’ll land among the stars’. In our daily lives we should develop the habit of thinking towards achieving more than just what we need, this way, even if we fall short of expectations, we can always land on what is just enough for us.
- An abundant mindset, as opposed to a scarcity mindset, is necessary for prolific financial growth. What does a scarcity mindset entail?
- You’re predominantly consumed with the thought that you’ll never have enough.
- You fail to take on challenging financial risk and quit so quickly.
- You fail to commit to opportunities that may grow you financially.
- You tend to have a limited perspective on how much you can unleash your potentials.
- You complain about any and everything rather than owning your challenges.
On the contrary, thinking abundantly envisages endless opportunities and growth-oriented thoughts amongst which include;
- Thinking win-win; a scarcity mindset sees the world and everything in it as being finite. That for you to be successful, you have to deprive others who are less fortunate. This mindset advocates a life of sufficiency. Taking only what you need and nothing more. However, as has been proven over time, the world is not a zero-sum game. With the right abundant thinking, you can achieve a win-win situation. You can deal with others and have resources multiply and go round. The more you have, the more others have. Ohana: no one gets left behind.
- Being optimistic; an abundant mindset understands that there is always light at the end of the tunnel. You should realize that there will still be more and there is no limit to what you can achieve
- Making the best out of failure; failure appeals to an abundant mind in search of financial growth as an opportunity to challenge him to do better. They never quit, never feel downtrodden rule applies here.
- Building positive interactions; this is not gold-digging, as the saying goes, “iron sharpens iron and gold begets gold”. People with an abundance mentality make valuable human relationships that gear towards the attainment of their goals.
- Deal with situations rather the give into situations; they tend to tackle situations rather than play victim to circumstances. They face challenges and feel comfortable with productive competitions.
When you have an abundant mindset, you begin to take conscious efforts towards achieving way more than limits can make possible. This way you are never left to manage amidst scarce resources.
While it is great to think and work towards an abundant financial reality, a question that is often left unanswered is whether there is such a thing as abundant living?
People believe that the more you get, the more you need.
If there is any truth to the claim that financial growth increases simultaneously with financial needs, then there is a need to always stick to the art of sufficient living.
The art of sufficiency is one that must be mastered at all stages in life. Learning to keep it all together, even when you have so little, or nothing to boast about is the art of self-sufficiency.
You must not be a billionaire to live happily or to afford a decent livelihood.
Sufficient living is the wealthy process of living with very little and making it look like you’ve got it all figured out.
A study shows 76% of Americans live from paycheck to paycheck. This is very sad especially if one must consider the dangers associated with inappropriate management of such limited income sources.
So why should you live sufficiently?
The obvious financial implication of living sufficiently is that you get to have more money in the bank. And no, sufficient living is not just for low-income people. Several high-net-worth individuals live that way too.
Some millionaires drive a Ford Fiesta.
While living with contentment has a lot of financial benefits, there are several ways it can also enrich your life:
Living simply can help you get more creative. When you don’t rely on money for everything, you’ll be forced to find alternatives to everything.
You explore other ways of getting the same or similar results cheaper.
What skill can you barter in exchange for dance classes? Or what can you use to replace a particularly expensive ingredient for cooking a newly discovered exquisite meal? Since the sufficiency mindset is to not spend more than is needed, your mind will be constantly engaged in finding ways to avoid buying new things.
Sufficient living allows you to use your mind, rather than money, to create the life you want.
You will find that enjoying what you truly love doesn’t have to cost much. And can be free in most cases: if you can create outside the box.
Live in peace and simplicity
Not having to conform to societal expectations as to appearance, spending and conventional yardsticks for measuring success are sure to leave you with less stress. You will experience more peace than you thought was possible when you drop all external markers of your self-worth.
All the anxiety that goes with trying to belong, to catch up with the Joneses and everyone else will be non-existent.
Sufficient living means you live as you want to, not as others want you to. Thus, your quality of life will be tremendously improved.
Freedom of choice
Adopting to only spend on your needs will free up so much money to give you endless options. Therefore, you can afford to change jobs, go around the world, survive a health scare or do any of the things that are dependent on money. At a point, you’ll have enough money to pursue whatever it is you want to do. A life not structured around the need to earn a paycheck is simply awesome.
So how can you go about achieving this awesome lifestyle?
These are a few tips that would keep you glowing financially in self-sufficiency;
You should be able to assign your income to more profound responsibilities. Even when you don’t have just enough to cover your immediate needs, budgeting would see you through to a phase of conscious and productive expenditure.
You should be able to analyze your priorities and attach greater importance to need before wants.
You should never appropriate money towards satisfying a want while you still have a need unmet.
You should understand that necessities such as shelter, food, transportation and many more come first before any other thing.
We have always said that a penny saved is higher in value, at least in the long run, than a penny spent. Saving would prepare you towards the future and grant you the ability to meet long-term goals and objectives without having to borrow.
Regardless of how little you earn, the art of saving is never counterproductive. A small fraction of your monthly income should be saved.
It’s a process which demands self-discipline but once you build it into a habit; you must have moved a step forward to self-sufficiency.
Your ability to afford a thing is paramount to acquiring it.
As a fundamental rule, never spend more than you earn. Subscribe only to budget-friendly services and acquire just essential commodities that are cost-effective. It is irrational and financial mediocrity to obtain that which you can’t afford.
Try to regulate the bills you incur. You can subsidize light bills and cell phone bills by economic usage.
We can’t say this loud enough, but you need to invest in productive areas. This would increase your income sources and place you in a position where you are less dependent on paychecks. You could always save enough to invest and invest enough to re-invest.
Investment should be a lifetime, never-ending project.
Avoiding Unnecessary Debt
Unless you borrow to make more money, avoid taking on debt. Credit card debts are the worst. As well as having high-interest rates and fees, they are also all too easy to accumulate. And piling on credit card debt will take a lot of years and plenty of sacrifices to clear.
Limit yourself to what you can afford.
Also, have an emergency fund to dip into when you’re hit with a sudden unexpected emergency.
The long and short of the story is that your financial growth depends mainly on your ability to think abundance and live sufficiently. Like we always say, we can only assist with tips, but then financial growth is exceedingly practical. If you want to change your financial life, you need to put in the work for maximal productivity.