The mindset of plenty will create abundance.

One of the biggest changes for me as an investor was changing from the mindset of scarcity to the mindset of plenty. Most of us are raised to hold onto every dollar we can and avoid debt. It took some time to understand that money can be made by having debt and that spending or even giving away money is a great way to propel yourself forward financially.

The people that get stuck with the mindset of scarcity will never be happy or content. They are always looking for the next raise, next pay cheque or the next consumable to try to feel fulfilled. The consumer society we live in dictates that in order to prove we are successful we need flashy cars, expensive watches and to eat at fancy restaurants. That creates a relentless, endless struggle to stay on top and a constant need for disposable income.

We never seem to have any left over money to help other people. Trading our three year old car in for a new model seems more important than providing a meal to someone or putting a roof over their head. With the mindset of scarcity there is only ever enough for us.

If you can shift over to the mindset of plenty you begin to understand the potential to give back. If you can live with a little bit less, other people can live with a lot more. Crossing over the threshold creates a whole new mindset of success. Yes, successful people drive Range Rovers, but really successful people help other people. When you choose to help someone instead of purchasing another consumable, you become a whole new person that exceeds the next rung on the social ladder. A Range Rover might impress the Jones’ next door, but donating that $100,000 to a real cause impresses everyone. Helping people is a social step beyond any status level you can achieve with material items.

Your Range Rover won’t be new next year and ten years from now it will just be a distant memory with no relevance. But if you truly help someone get back on their feet, become a better person or accomplish something they couldn’t do on their own, that lasts forever. If you begin helping people regularly, over time there will be a lot of people leading better lives because of you. How would that make you feel? What will other people think of you? Will more people be willing to work with you, respect you or help you when you are in need?

You don’t need to be rich to help people. Often it’s not money that people need. Advice, education, a place to stay for a while, a ride to a job or taking their kids off their hands for a few hours while they study for a course are things that almost anyone can provide with little or no cost.

The main reason people choose to not help people is because they believe that by helping someone else, they will somehow be worse off for it. After all, if you give away $100 you are just out $100 right? Many successful people have found that helping people is not a win lose scenario. It is usually win win.

If I start a marketing campaign offering to donate 10% of my commission to charity, people will respond positively to that. Scarcity mindset tells me I will have to give up 10% of my income, but the mindset of plenty tells me I’m still going to keep 90%. The increase in clients will outweigh the donations made, the donation is a tax benefit, when I get to write a huge cheque to a charity I get to feel like I’ve done something really great and people will benefit from the donation. Who losses in this scenario? If I can donate to people in need at little or no cost to myself, why wouldn’t I?

It might seem like the primary agenda is to make money when companies use charity and donations as a form of marketing. Many wealthy people make large public donations to generate a good public image. Only the person making the donation truly knows if they did it primarily to help people or primarily for self gain through publicity. It doesn’t matter. It’s win win. Whether they do it for either or do it for both is irrelevant. People in need received help and the person that made to donation looks like a hero. There are no victims.

Real estate investing involves having a good public image. If you are trying to rezone a property or get a basement suite authorized, you need the city council on your side. When it comes to landlord tenant disputes you need the bylaw officers and arbitrators on your side. When it comes to negotiating with property managers, contractors and other professions, you need to be well received. Do you think it will be beneficial if you are someone that is known in the community as a positive influence that contributes, helps people and solves problems?

Even if you only donate and help people for your own personal gain, I think over time you will find that helping people is a lasting fulfillment that money can’t buy. When I was in my 20’s I wanted stuff. A Ferrari was at the top of my list. I figured that would bring pure joy and happiness. Now I realize that a Ferrari would have made me happy for a very short period of time before I needed the next consumable to fill the bottomless pit of consumerism. What would that Ferrari mean to me on my death bed? Would I rather be know as “Jason: He owned a Ferrari.” Or “Jason: He helped people live better lives”? What legacy do you build buying things? Who are you impressing? What do the people you are trying to impress mean to you? A Ferrari wouldn’t show up to my funeral, but hopefully the people who’s lives I have positively effected will.

Scarcity mindset had me thinking that real estate investing was a dog eat dog world. I couldn’t have been more wrong. How many deals have you done with other people? It takes a team and the more you help other people, the easier investing will be for you. The mind of plenty tells me there are more deals than there are investors and maybe by helping another investor get what they need, they will pay it back to me in the future. That’s how life should be viewed. When we step on each other trying to climb to the top, we all get held down. If we work together and strategize we can all prosper in real estate and in life.