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How to shift into an abundance mentality?

How to shift into an abundance mentality?

High Quality Financial Education Made Sample

Master Investor
May 10, 2023

Only those with an abundance mindset can thrive in times of crisis

We can learn from how Amazon's practice of investing their operating income served as a model for how to get wealthy. Spenders triumph over savers, and vice versa. How to shift into an abundance mentality?

We can read about how Amazon's purchase of Whole Foods dominated financial news in it as well. But we might have missed a fascinating side story if we had been following that news at the time. The acquisition of Whole Foods turns Amazon into one of Walmart's biggest and most threatening rivals, a development that nearly no one could have foreseen back in the mid-1990s when it was just getting started as an online bookseller.

Summary:

The success of our financial future is dependent on whether our thinking is predicated on abundance or scarcity.
A scarcity mentality will keep us in poverty and abundance mentality will keys wealthy.
It is possible to change your perspective from one that is scarcity oriented to one that is abundance centered, but it requires daily intentional effort.

Amazon’s abundance mindset: investing in a big (data) advantage

According to Kevin Maney's article for Newsweek, Walmart will not be able to compete head-to-head with Amazon despite Walmart's acquisitions of businesses like online clothing retailer Bonobos. This is because of the combination of user data and operational efficiencies that Amazon has implemented. Walmart is wary of the threat that Amazon poses even though they now have a significantly larger retail footprint and substantially more passive income.

According to Maney, "the century-long interaction between technology and retail suggests Walmart is screwed." The company will wind up looking like Michael Jordan playing baseball as a result of its attempts to change into an online store by purchasing Bonobos and Jet.com; what made it successful in one area won't work in another.

On the other hand, Maney claims that Amazon's acquisition of Whole Foods will only benefit their business. "Either Whole Foods will help Amazon learn about a kale-munching customer sector it doesn't yet own or Amazon's AI will help it make each Whole Foods store irresistible to everyone in its neighborhood," Maney writes. or either."

This is an attitude of wealth. Amazon is planning forward and looking for ways to outperform the competition. They are not trailing behind but rather are observing what others miss.

Since the acquisition, Amazon has innovated greatly to include Whole Foods into their online shopping model. Examples include enabling Whole Foods grocery shopping on the Amazon website and providing free same-day delivery for its Prime members

These undoubtedly helped Amazon keep eroding what earlier appeared to be an invincible market share that Walmart had in the new world where coronavirus kept everyone as much as possible at home.

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Walmart's concept of scarcity: pressuring suppliers

At the time of the Whole Foods acquisition, Walmart made an intriguing decision in the face of growing competition from Amazon. They informed clients and vendors that using Amazon's AWS cloud servers for software development was a deal-breaker. They were instructed to transfer their applications to Microsoft's Azure cloud instead. An Amazon official said that Walmart was intimidating its suppliers, as Fortune reported. The spokesperson had a point. As a result, a lot of suppliers defied Walmart. Moving our technology to a new cloud system is no minor undertaking, and it could cause a major disruption to our organization.

They could get away with using these strategies back when Walmart was a retail industry giant that seemed unstoppable. However, Walmart no longer wields the same influence that it once did, and in the years to come they will continue to lose market share.

The truth is that Walmart won't just keep using these strategies; they'll probably intensify them. Why? as a result of their fear.

Additionally, a scarcity mindset is used when people and corporations are afraid. In this instance, Walmart sought to squeeze that competitive advantage and coerce loyalty instead of rewarding it, rather than seek ways to harness a competitive advantage of a far more robust supply chain to serve a vast physical footprint.

Here are some expressions that are frequently used and that scream "A person or company has a either an abidance vs scarcity mindset!" to assist us determine what kind of mindset we possess:

"When a person says they can't afford it." Contrary to popular assumption, the terms "poor" and "broke" are not synonymous. Both have to do with money. But being poor is a state of mind, whereas being broke is merely a transient circumstance. Instead, ask ourselves, "How can I afford it?" to assist us change our perspective.
"It's just money." Depending on how it is used, this remark has the potential to be both empowering and harmful.

The phrase "It's just money" is frequently used to emphasize the fact that there are more significant aspects of life than money, and this is undoubtedly true. Despite this, it's also critical to accept the fact that money does have a significant impact on our lives. While we shouldn't see money as being the most essential thing, we also shouldn't be careless with how we handle our money because money is currency that we most use in our lives.

The bottom line is to learn to manage and build our money wisely by developing our financial knowledge.

"Money gives me total freedom." Being anxious (like everyone else) is not a cause to settle for the present and worry about the future.

Instead, adopt a more optimistic perspective on our circumstance. If we are without anything, there is only one direction to go: up. Use this to our advantage and take action if we are anxious about our lack of resources and education.

Discover what we need to do to take control of our financial future by learning about the economy, keeping up with global events, and other relevant topics. This is the "unfair advantage" of the wealthy; it is known as receiving a financial education.

"When a person says that they don't have enough money." Someone who makes opposite declaration clearly has a scarcity mindset as opposed to an abundance perspective.

There is never enough money for individuals who have a scarcity mindset. Even worse, when it comes to retirement, having too much money becomes a serious issue because people are terrified of all the forces that can take it away, like taxes.

Because they are preoccupied with not having enough, people with a scarcity mindset fail to perceive opportunities to earn additional money.

The persistent anxiety that permeates the scarcity mindset prevents creativity.

The lack mentality puts us in poverty.

Amazon beheld an abundant planet. They took decisive action as a result, which improved their company and led to new collaborations and opportunities.

Walmart observed a limited world. Due to their unjustified fear of Amazon's cloud servers, they retaliated against vendors and partners.

Walmart is creating fences while Amazon is making progress.

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What will we witness?

This conflict between Amazon and Walmart taught us a valuable lesson at a difficult time like the one we are currently experiencing with a pandemic around the world and a potential lengthy and painful recession: the fundamental question we must ask is: will we be a person who sees abundance in the face of fear or will we only see scarcity? Will we discover new opportunities for growth or will we erect our own personal barrier?

We will never achieve true success if we opt for scarcity, which is practically everyone's default. Using "The Two Views of Money" as a reference:

We can make a connection between some of the reasons of scarcity and how it affects people's views. The intriguing thing was that, surprisingly, the exact ideals people believed would benefit them paradoxically brought to scarcity in their lives.

There is greater scarcity in our life the more security we require. That is why many miss out on chances to use investments and businesses to make their money work for them. They avoid taking chances out of fear.

There is more scarcity in life the more competitive it is. For these reasons, people compete for positions and promotions at work as well as for academic success.

Furthermore, it is increasingly difficult in today's environment to resist the urge for protection and to see everyone as a rival.

For Walmart and other businesses like it, the advice and words of Master Investor still ring true. The desire for safety and the misguided competitive spirit will only cause us to regress rather than grow our company and our wealth.

However, if we approach life with an abundance-versus-scarcity perspective, we will recognize opportunities in the crisis that others won't. The amazing thing is that once we recognize opportunities, not taking action will be risky. Additionally, we won't be terrified of competition because we see potential everywhere we turn. Instead, we will invite folks along the way.

Scarcity vs. abundance: a daily decision

The fact is, Walmart has demonstrated its capacity for both innovation and success. They have witnessed an abundant world. However, recent events demonstrate that they are equally susceptible to operate in a scarcity mindset. This serves as a helpful reminder that we must everyday pick our mindset. There is never a point in our mindset journey where we arrive.

We don't just proclaim, "I've done it," when we wake up one day. We now have an abundant mindset. What comes next? Instead, we should declare as we awaken each morning, "Today, I'm choosing to see the world as one of opportunity and I'm going to act accordingly."

What will we decide to do today then?

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