The Theory of Scarcity and How It Can Change Your Life
There is a theory in economics called the theory of scarcity which basically discusses that there is limited availability of certain resources at any point in time. This basically dictates that due to the limited resource, it also means a limited number of goods can be created.
This theory of scarcity exists for our lives as well.
In any one moment of time, we have a limited amount of resources at our disposal:
A limited amount of TIME
A limited amount of MONEY
A limited amount of KNOWLEDGE
What we choose to do with these three resources ultimately dictates
the success we have in our lives.
To truly create a successful and wealthy life you need to focus your efforts on finding ways to get the most out of each of these areas and forever expanding each of these components in your life.
#1 LIMITED RESOURCE- TIME
SO HOW DO YOU DO THIS?
1. One of the most valuable things I did early in my career and growth journey was to get a productivity coach and learn how to maximize and prioritize my time. Get great at time management; the pay off is extraordinary.
2. Get clear on what is important to you in your life and who you want to become, what you want to achieve and what legacy you want to leave in this world. When you give yourself a direction in life and identify what is truly important and valuable, you will know how to prioritize the limited resource of time we all have.
There are many more ways to do this and I will spend more time on this later. I love productivity and coaching others hot to get more out of everyday. It is such a valuable set of tools.
#2 LIMITED RESOURCE- KNOWLEDGE
IT IS COMMONLY KNOWN THAT YOU CAN ACQUIRE KNOWLEDGE IN TWO WAYS
1. From your own experience
2. From the experiences of others
Knowledge from your own experience is slow, tedious, and sometimes rather painful
Knowledge from others who have achieved the results you truly want is something every successful person will tell you is essential. This is where a mentor comes in.
HOW DO YOU MAXIMIZE YOUR SECOND PRIMARY RESOURCE?
1. There is a saying I love “I stand on the shoulders of giants”. How powerful. This is so true for me; a massive amount of the success I have achieved in my life has been due to the mentors I have surrounded myself with. Whether these are mentors I sought out to work with me personally, which I have done throughout my career and still do today, or through learning from the writings or videos or audios of great people. Mentors can save you so much time on your journey to success, make you so much money, leapfrog your progress personally and professionally. If you don’t have one now, get one!
2. Create a strategic growth plan. Look any growth is better than no growth; but if you want to maximize your success, you need to be strategic about how you are growing and in what order. Get into the habit of asking: “What should I be learning and how should I be growing right now to reach my next major milestone. Again, if you are not sure, get a mentor. Do I need to say it again? GET A MENTOR.
p.s. here is a little tip – if you want to maximize your personal learning and growth, start by getting clear on where you want to go into the future, then learn how to manage your time and learning how to learn effectively in your own style. I can’t overestimate the significant of this.
#3 LIMITED RESOURCE- MONEY
But for right now, what are the choices you are making with your money. Is it to buy another pair of shoes you truly don’t need? Is it to buy lunch out every single day?
Or is it to set clear budgets and make clear decisions with your money based on your goals and values?
The choices you make with the money you have right now, will dictate the level of supply of money you have available to you tomorrow.
SO HOW DO YOU GET MORE OF IT?
1. There is a law of universe that says that if you can’t manage the money you have got, then why would you be give more to manage. So first thing is first, get great at managing your finances: Create budgets, have money nights, become financially literate, this is the foundation of all wealth.
2. Start investing today; get your money working harder for you than you have to work for your money. It does not matter how small amount of cash you have, start now and get your money working as your little slave and again get educated. Stop waiting for the perfect time, get educated and start
Remember your future is based on the decision you make today with each of these resources and how you continue to learn and grow in each realm. Seriously GET A MENTOR and watch your life soar.
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Author: Todd Polke
As a Property Investment Coach, personal mentor and professional speaker I help every day people take their personal, professional and financial lives to the next level.