Money Mindset

Growing up, you may have had some external factors that influenced your decision to pursue a career in medicine, in addition to your internal desires. Similarly, your external environment has probably influenced the way you think about money.

Scarcity vs Growth

In general, the majority of us have either seen a scarcity or a growth mindset at home. We either heard the phrase “ we can’t afford that “ or “those things are not for us.” Or some form of those phrases. That mindset is the scarcity mindset, where you think money is scarce, so you must hold every dollar close and safe. You develop a fear of money because one day, it might all disappear. Instead of figuring out how you can afford things, your mind sets limitations on what you think is possible. On the other hand, there are those individuals who see the world through a completely different lens. They are the opportunity finders, the ones who try and figure it out. When an issue arises on affordability, their instinct is to determine how it can be done.

Spenders and Savers

Similar to the above dichotomy, most people fall into the category of spenders vs savers. Once again, it’s from what we’ve probably seen growing up. If we saw our parents giving in to every temptation and spending without limit, those are probably the traits that we’ll adopt as well. If we saw our parents try and save and invest as we grew up, and they had healthy conversations about money, then that’s probably the path you will end up following. There are extremes at both ends. I think you can and will be miserable if you venture too far on either side. The key is to find a happy balance where you’re putting money away but also spending on things that provide value.

Building your psyche

Most of you are in a unique position where you could easily be a spender and saver at the same time, and not have to worry about having a scarcity or growth mindset, and just coast through life without too many issues. However, that is not why I write this newsletter. It’s not to just coast through life. We have the potential to build great wealth and do a lot of great things for ourselves, our families, and our communities. To build your financial muscle, I suggest adopting a growth mindset and falling somewhere in the middle of being a spender vs a saver, but leaning more towards the saver. It is a perfect medium to still do the things you would want to do in life, use your doctor skills to problem solve, and become creative with your finances. Money doesn’t necessarily buy happiness, but it can solve problems.

In conclusion,

The way we think about money and the way we perceive it can play a massive role in our relationship with it. We all have mental barriers to overcome to win with our finances. The game isn’t difficult but jumping through mental roadblocks is.

A.K.MD