I’ll never forget the day my childhood friend sold his land back in 2011. He walked into our usual coffee shop beaming. “I’m rich now,” he announced, waving a bank statement at everyone.
And he was. Overnight, he had become a millionaire.
Within months, he had two new cars, a fancy house, and shiny new motorbikes for his kids. He joked that he only drank bottled water now, sometimes even splashing it on his face in the morning because he could. He was the “village millionaire.”
Three years later, he was broke. Completely broke.
That experience revealed the real difference between wealth and poverty: mindset. Wealth doesn’t depend on how much money you have—it’s defined by how you think.
The Scarcity Mindset in Action
When my friend had money, I saw it as a golden opportunity. I tried, multiple times, to get him to invest with me, to build something that would last. Our conversations were a masterclass in the scarcity mindset.
Me: “Let’s open that bookstore we always talked about.” Him: “Nah, that’s a good way to lose money.” Me: “Okay, what about a smaller investment? Something with less risk.” Him: “The returns are too small. Not worth my time.” Me: “So you want a bigger investment?” Him: “I don’t have that kind of cash lying around.” (He did.)
Every opportunity met an excuse. He spent hours studying how plans could fail—but never a minute starting one. He was thinking more, but doing less. He had a millionaire’s bank account but was still operating with a scarcity mindset. He was so afraid of losing what he had that he risked losing it all.
The Appearance of Wealth vs. The Reality
I saw this mindset everywhere in my community. People would take out huge loans to build massive, empty houses to “save face” and look successful to their neighbors. They would throw lavish weddings they couldn’t afford. They were spending money they didn’t have to buy things they didn’t need to impress people they didn’t even like.
They built an appearance of wealth—not its reality. Pride can’t feed you—and it won’t sustain you.
The Wealth Mindset: A Different Operating System
I came from poverty myself. I had to learn a different way of thinking out of necessity. My journey was the mirror opposite of my friend’s. I started with nothing but a wealth mindset.
When money came in from my small jobs, my first thought wasn’t “What can I buy?” It was:
- Save first.
- Invest in a skill second.
- Spend the little that was left.
When an opportunity came, my first thought wasn’t “What could go wrong?” It was, “How can I make this work with what I have?”
This is the core difference. The scarcity mindset views the world as a place of limitations, risks, and reasons not to take action. The wealth mindset views the world as a place of opportunities, challenges, and reasons to strive. People with a wealth mindset stay hungry—not for money, but for growth.
Poverty Steals More Than Money—It Steals Your Courage
I don’t judge my friend. I hate what the scarcity mindset did to him. It took more than his money; it took his confidence, opportunities, and dreams. Constant fear of loss prevents any chance to win.
How to Cultivate a Wealth Mindset Today
Breaking the cycle isn’t about getting a sudden windfall of cash. It’s about changing your daily thoughts and actions.
- Stop Spending to Impress Others. Your financial security is more important than your neighbor’s opinion.
- Start Small, But Start. Take one small, concrete step today. Save $10. Watch one educational video. Make one phone call. Action is the cure for overthinking.
- Invest in Yourself First. Before you buy a new gadget, ask: “Will this make me more valuable?” Your skills are the only assets no one can ever take from you.
- Stay Hungry. The moment you think you know everything is the moment you stop growing. Read. Ask questions. Fail. Learn. Try again.
My friend who lost it all? He eventually got back on his feet. It took him years of hard work, and he had to completely change his mindset. He had to learn that money is just a tool. The real wealth was the mindset he built along the way.
If he can change, anyone can. The question is: will you?
