Have you ever caught yourself constantly worrying about money — stressing over overdue bills, wondering how you’ll afford next month’s groceries, or feeling like no matter how hard you try, it’s never enough?
I’ve been there too. For a long time, I didn’t have the best relationship with money. But those challenges ended up teaching me something really important: the way we think about money can shape our entire reality.
A negative money mindset doesn’t just affect your wallet — it can impact your health, your mood, your productivity, and even how you show up for your family and goals. And when you’re stuck in a poverty mindset, it’s like carrying around a heavy weight that keeps you from moving forward.
It chips away at your confidence, creates resentment, and keeps you focused on what’s missing instead of what’s possible.
But here’s the good news: you don’t have to stay stuck in that mindset. In this post, we’re going to dig into how the poverty mindset sneaks into your life and, more importantly, how you can break free from it for good.
Ready? Let’s dive in!
What is Poverty Mindset?
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A poverty mindset is any negative thought, belief, or attitude towards money that impedes us from breaking away from the chain of poverty. This mindset can be acquired from the environment we live in, negative financial values handed to us, cultural and societal norms, and negative experiences about money.
For example, if your parents always said to you that you will never become rich because your family has always been poor, then you grew up with a poverty mindset. Or if you were traumatized by financial hardship, making you believe that you’ll never become wealthy, then experience taught you the poverty mindset. These things only breed negative relationships with money.
Fortunately, you do not have to live with the poverty mindset forever. As for me, I acknowledged that I had a poverty mindset and needed to work on that to rewire my thoughts and beliefs about money.
9 Poverty Mindset Examples
How do you know that you have a poverty mindset? Look at these examples of poverty mindset and check with yourself if one or more of them resonate with you.
1. Scarcity Mentality
One of the most apparent manifestations of the poverty mindset is the scarcity mentality. This mindset tells you that there are not enough resources to go around for everyone – whether it be money, opportunities, time, love, etc. It makes you competitive, bitter, and anxious.
For example, if someone in your workplace gets promoted, the scarcity mindset tells you you won’t ever climb up the corporate ladder because someone else got there first. What does that make you feel? Bad, right? With this point of view, you’ll probably lose motivation and feel dejected at work. You’ll think, “Someone else already got the promotion, so why should I bother working hard?”
You’ll have to look at the other end of the spectrum to break this mindset. The abundance mindset teaches you that there’s always enough for everyone and that resources will never run out. So instead of feeling bitter because you did not get the promotion, you’ll think that maybe it’s your turn next time. You’ll learn to clap for other’s victories while you wait for your own.
2. Fear of Failure
Failure is part of life. And if you’re afraid to fail, you’ll never go forward. People who have a poverty mindset are risk-averse. They just want to feel safe and comfortable where they are and don’t like venturing out of their comfort zones.
The problem with this negative mindset is that you’re missing out on growth opportunities. You don’t want to advance in your career because you’re comfortable doing the things you’ve always done over the years. You don’t want to open a new business or invest your money because you’re afraid it might not work. You also think that when you fail, you’ll experience a “downgrade” in life and where you’ll lose status and money.
It is essential to overcome your fear of failure to eliminate the poverty mindset. Practice positive self-talk and face your limiting beliefs head-on. Surround yourself with people you aspire to be – wealthy, happy, and successful – and let their energy rub off on you. Consider yourself a work in progress, so focus on your journey, not perfection.
3. Instant Gratification
Are you prone to making impulse purchases that you almost always regret? If so, you are prone to instant gratification, and it’s one of the things that give you a poor mindset.
I’ve realized that instant gratification only gives you temporary happiness. You’ll only be happy when you touch a new, flashy smartphone or a fancy new handbag. But does it make you happy in the long term? No.
To overcome this, practice delayed gratification instead. When faced with a potentially urgent expense, think about it so many times and even give yourself a few days to decide on it. When I’m about to make a potentially huge purchase, I give myself a few days to think whether I need it or just want it. When I don’t end up not buying the item, I would put the money into my financial goals, such as paying down debt or increasing my savings.
4. Choosing to spend on cheap things over quality ones
Being frugal is good, but it’s not if you sacrifice quality. For example, a pair of new cheap shoes might make sense because you want to save money. But if that pair of shoes gets damaged in the next week or two, did that purchase make financial sense to you?
It’s important to remember that the cheapest ones are not always the best options. They may help you save money upfront, but they’re not smart purchases if they must be replaced or repaired too often. When it comes to things that really matter to you, always choose quality over quantity.
5. Resisting growth and development
Sometimes, when you feel too comfortable where you are, you think investing in yourself wastes money. But that’s not the case.
Investing in yourself means putting in the time, effort, and resources to propel yourself forward. You can invest in yourself in many ways – learning new skills, listening to mentors and coaches, and buying things that improve your confidence and efficiency at work (a better computer, clothes, make-up, etc.).
Do not resist growth and development. Instead, embrace them with arms wide open. Think of it as a way to improve yourself, widen your horizon, and access new opportunities.
I’ve always loved reading books, and it’s one of the best ways to invest in yourself. Here are some of the best self-help books you can start reading today to build up your confidence and embrace growth and change:
- Atomic Habits (James Clear) – learn to conquer bad habits and adopt positive ones.
- The 7 Habits Of Highly Effective People (Stephen R. Covey) – this self-help book teaches how proactive habits can lead you to success.
- Think And Grow Rich (Napoleon Hill) – this book emphasizes the power of mindset to achieve success.
- The Subtle Art of Not Giving a F*ck (Mark Manson) – this book uses humor to teach us that
6. Always making excuses
Another poverty mindset you need to be wary of is constantly making excuses. This is when something goes wrong; you want to blame something or someone else. While it’s true that we sometimes make bad decisions or poor judgment, it is important to own up and take responsibility for the consequences. Playing the victim card will never get you far.
So, instead of blaming external factors, be accountable for your actions. Own up to them. You are not helpless. Correct your mistakes, learn from the experience, and use it to make better decisions in the future.
You can conquer this negative mindset by cheering yourself up through positive self-talk. Acknowledge your poor decisions and learn your lessons from them. It’s also wise to surround yourself with people who positively influence your life.
7. Assuming you don’t deserve wealth or success
One of the common limiting beliefs of people with the poverty mindset is that they don’t deserve to get rich or succeed. This may stem from the belief that when wealth or success is too easy to achieve, you don’t deserve it. You might even feel guilty about your achievements, especially when you think of others who’ve worked as hard as you did.
But don’t you think this belief is self-sabotaging? When you adopt the abundance mindset and practice affirmations, you learn to let go of this belief and welcome wealth and success into your life. You are worthy of anything good that happens in your life, whether you’ve achieved it quickly or the hard way. You must learn to be comfortable about achieving your goals and celebrate and embrace them.
8. Lack of goal-setting
If you desire to manifest wealth and success, it is essential to establish clear financial goals. Individuals who lack specific financial objectives often adopt a poverty mindset, hindering their ability to attract abundance. The lack of goal setting makes you more complacent, passive, focused on short-term results, and even fear failure.
You are less motivated or inspired to take positive action when you lack clear direction. For example, you know you have to save money, but are you clear about what for, how much, and for how long? Setting these terms allows you to pave a more straightforward path and formulate a more specific strategy for achieving your financial goals. It is also essential to set long-term goals and not just short-term ones.
Craft a realistic financial plan to achieve your goals. If your goal is too lofty, break it into smaller milestones and celebrate every win. Achieving your goals is not always easy, and you may see yourself going off track sometimes. But with a positive mindset, you’ll learn to refocus and enjoy your journey.
9. Constantly comparing yourself to others
They say, “Comparison is the thief of joy.” But it’s more than that — it’s a poverty mindset that holds you back from building wealth and success.
Why? Because comparison focuses on scarcity. You see what others have — the bigger house, the nicer car, the lavish vacations — and feel lacking. Instead of appreciating what you have, resentment takes over, undermining gratitude.
This mindset creates an impossible standard. The more you compare, the more you feel you fall short, damaging your confidence and self-worth.
How do you overcome this?
Remember, life isn’t a race. Everyone has their own path, challenges, and definition of success. Embrace gratitude for where you are, while still aspiring for more. Contentment and ambition can coexist — it’s okay to want more while appreciating what you already have.
Key Takeaways
Reflecting on these examples of a poverty mindset, you may realize that your own thoughts and beliefs have been holding you back. You might have inherited this mindset or developed it through difficult experiences — but it’s never too late to change.
Start focusing on what’s good in your life instead of what’s missing. Replace negative self-talk with encouragement, and become your own biggest supporter. Stop seeking validation from others and trust that you’re on your unique path to success. Let go of limiting beliefs, and consciously replace them with positive thoughts and actions.
Which poverty mindset resonated with you the most? How are you working to overcome it? Share your story in the comments!
