Lewis Howes: The Scarcity Belief That’s Blocking You from Making Money & How to Feel Rich Even When You’re Broke
In this episode of the On Purpose with Jay Shetty podcast, Lewis Howes and Jay Shetty engage in a thought-provoking dialogue centered around the deep-rooted impact of one's upbringing and past experiences on their relationship with money. They delve into strategies for identifying and overcoming limiting beliefs, fostering an abundance mindset driven by gratitude and generosity.
Howes and Shetty also share insights on building sustainable financial abundance through skill development, monetizing knowledge, and creating multiple income streams. The conversation offers practical guidance on avoiding the pitfalls of "get-rich-quick" schemes by cultivating patience, discipline, and a long-term perspective on financial health.
This is a preview of the Shortform summary of the Mar 10, 2025 episode of the On Purpose with Jay Shetty
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1-Page Summary
Developing Self-Awareness and Healing One's "Money Story"
Lewis Howes and Jay Shetty discuss how past experiences shape one's relationship with money. Howes highlights the impact of parents' behavior, while Shetty describes growing up believing earning money was difficult. They encourage recognizing emotional and physiological responses to money situations.
Howes and Shetty advocate reframing one's "money story" by identifying and addressing "money wounds" or limiting beliefs. Howes shares his insecurity from his family's finances, while Shetty emphasizes respecting money based on cultural tradition. Both promote ongoing self-awareness to transform limiting mindsets.
Cultivating a Mindset of Abundance, Generosity, and Gratitude
Howes suggests approaching people with enthusiasm can open opportunities for abundance. Shetty rewired his scarcity mindset to recognize wealth-creating possibilities. They underscore being generous with time and knowledge, believing generosity attracts abundance.
Howes and Shetty share anecdotes illustrating how gratitude and generosity led to receiving opportunities in return. They stress respecting money as a tool, not for hoarding, and appreciating life's non-financial blessings to feel truly wealthy.
Developing Skills for Sustainable Financial Abundance
Howes and Shetty emphasize skill-building over shortcuts. Howes credits his curiosity for opportunities after a career injury, while Shetty advises improving areas of expertise. They highlight monetizing knowledge and creating multiple income streams.
Shetty found success by offering services like video editing. Howes started optimizing LinkedIn profiles. Both assert continuous growth and value creation manifest financial gains, suggesting the right mindset is pivotal for sustainable abundance.
Avoiding the Pitfalls Of Chasing "Get-rich-Quick" Schemes
Howes reflects on hoarding from fear and missing wellbeing opportunities. He warns against seeking instant gratification, emphasizing wealth requires patience and discipline.
Shetty cautions about gambling for profit without understanding. They share examples of losses from hasty investing decisions. Howes advises managing money anxiety for long-term financial health over short-term gains through systematic investing.
1-Page Summary
Additional Materials
Counterarguments
- While recognizing emotional responses to money is important, it's also crucial to acknowledge that not all emotional responses can be easily controlled or rationalized, especially when they stem from deep-seated trauma or mental health issues.
- Reframing one's "money story" can be beneficial, but it may not address systemic issues that limit financial opportunities for certain groups, suggesting that personal mindset changes are not a panacea for broader economic inequalities.
- The idea that generosity attracts abundance can be overly simplistic, as it doesn't account for the fact that many generous people may still struggle financially due to circumstances beyond their control.
- Respecting money as a tool and appreciating non-financial blessings are positive attitudes, but they may not be sufficient for individuals facing poverty or financial crisis, where more immediate and practical solutions are needed.
- Skill-building is important, but the narrative may overlook the role of networking, luck, and timing in achieving financial success, which can be equally critical factors.
- Monetizing knowledge and creating multiple income streams is sound advice, but it may not be feasible for everyone, especially those with limited resources, time, or access to education.
- The success stories of offering services like video editing or optimizing LinkedIn profiles may not be replicable for everyone, as market saturation or lack of demand in certain areas can limit these opportunities.
- The caution against "get-rich-quick" schemes is prudent, but it's also important to recognize that not all unconventional investment opportunities are inherently bad, and some may offer legitimate paths to financial growth if approached with due diligence.
- The emphasis on patience and discipline in wealth-building is valuable, but it should also be acknowledged that some individuals may face urgent financial needs that require more immediate solutions.
- Advising against gambling for profit without understanding is sound, but it's also worth noting that some forms of investment inherently involve risk, and risk management is a key skill in financial decision-making.
- The recommendation to manage money anxiety for long-term financial health is important, but it may not fully address the psychological complexities of anxiety disorders or the need for professional mental health support in some cases.
Actionables
- You can track your emotional reactions to financial decisions by keeping a money journal, noting how you feel when spending, saving, or even thinking about money. This practice will help you become more aware of your emotional triggers and patterns. For example, if you notice anxiety when paying bills, you might explore ways to automate your finances to alleviate stress.
- Develop a habit of daily gratitude focused on non-material wealth, such as relationships or personal achievements, to cultivate a sense of abundance beyond finances. Start or end your day by writing down three non-financial aspects of your life you're grateful for, which can shift your focus from scarcity to appreciation.
- Create a "skill swap" network with friends or community members where you exchange services based on each person's expertise, fostering a spirit of generosity and collaboration. For instance, if you're good at cooking, you could offer meal-prep services in exchange for someone else's graphic design skills to create a personal logo or resume layout.
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Developing Self-Awareness and Healing One's "Money Story"
Lewis Howes and Jay Shetty delve into the nuances of one's relationship with money, emphasizing the need for self-awareness and healing to transform financial mindsets.
How Past Experiences and Beliefs Shape Current Money Relationship
Impact of Family History and Upbringing on Financial Mindsets and Behaviors
Howes and Shetty examine the impact of past experiences and upbringing on financial behaviors. Howes discusses the importance of being aware of one's "attachment style" toward money, which often stems from observing parents' relationships with finances. He reflects on how parental actions, like arguments over expenses, contribute to one's present feelings and behaviors about money.
Shetty describes growing up in a home where money was perceived as difficult to earn because of his parents' language and decisions. His experiences, including a job at 14 that paid very little, reinforced the thought that making money is challenging. He also recalls judgments in his household that suggested having money meant engaging in unethical behaviors.
Awareness of Emotional and Physiological Responses in Money Management
Recognizing Patterns of Stress, Anxiety, Scarcity, or Abundance in Finance
The hosts emphasize noticing emotional and physiological responses when dealing with money, such as stress or anxiety when reviewing bank accounts. Howes suggests monitoring feelings when receiving money, paying bills, or considering financial situations, to recognize patterns that could affect stress levels or feelings of scarcity or abundance.
Shetty touches on the stress associated with financial insecurity and the fear that a paycheck might not cover necessary expenses. Howes speaks about tackling negative emotional responses and striving to shift towards an energy of abundance.
Reframing "Money Story" For a Healthier, Empowered Perspective
Identifying and Addressing "Money Wounds" or Limiting Beliefs
Howes and Shetty encourage a reframing of the "money story" to gain a healthier and more empowered financial perspective. Howes shares his insights on the importance of healing one's relationship with money, suggesting that increasing net wor ...
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Developing Self-Awareness and Healing One's "Money Story"
Additional Materials
Counterarguments
- While self-awareness is important, it is not the only factor in transforming financial mindsets; practical financial education and literacy are also crucial.
- Some individuals may have had positive experiences with money in their upbringing, which can lead to a healthy financial mindset without the need for significant healing or transformation.
- The belief that money is difficult to earn can be challenged by examples of entrepreneurial success and the concept of passive income, which suggest that not all money needs to be earned through hard labor.
- Emotional responses to money can sometimes be rational and appropriate reactions to real financial threats or challenges, rather than patterns that need to be reframed.
- The idea of shifting towards an energy of abundance might not resonate with everyone, and some may find success in a more pragmatic or conservative approach to finances.
- The correlation between net worth and self-worth can be problematic, as it may perpetuate the idea that one's value is tied to financial success.
- The concept of "money wounds" may not be applicable to everyone, as some individuals may not fe ...
Actionables
- Create a "money emotions journal" to track your feelings during financial activities. Start by jotting down how you feel before, during, and after making a purchase or receiving income. This can help you identify emotional patterns and triggers related to money. For example, if you notice anxiety when paying bills, you might explore ways to automate payments or set aside a specific time for financial tasks to reduce stress.
- Develop a "financial affirmation routine" to shift your mindset towards abundance. Write down positive affirmations about money and your ability to manage it, and recite them daily. This could be as simple as saying, "I am capable of making wise financial decisions" or "I attract financial abundance easily." The repetition of these affirmations can help rewire your subconscious beliefs about money.
- Engage in a "money role-play ...
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Cultivating a Mindset of Abundance, Generosity, and Gratitude
Lewis Howes and Jay Shetty expound on cultivating a mindset of abundance, generosity, and gratitude concerning money and wealth, emphasizing the spiritual richness and the creation of opportunities.
Embracing Abundance and Possibility Over Scarcity
Seeking Money and Abundance Opportunities
Howes suggests that by relaxing about money and approaching people with energy, passion, and excitement, one can open up to more opportunities for financial and spiritual abundance. He implies that one’s money personality can help create more abundance or keep one in a state of scarcity and lack, urging individuals to seek out opportunities for money and abundance.
Shetty, despite struggling financially after significant online success, had to rewire his scarcity belief system to see opportunities that could create wealth and emotional richness. He emphasizes the value of money as a key to a richer life, suggesting that a feeling of abundance can attract more financial opportunities. Howes adds that by reminding himself daily that he is a magnet for money, he grew to recognize and appreciate the abundance in his life, even in the smallest forms, such as finding a penny.
Practicing Generosity With Limited Time, Knowledge, and Resources
Recognizing That Generosity Attracts Abundance In Return
Howes and Shetty highlight the importance of generosity, not just in monetary terms but also with time, wisdom, and knowledge, suggesting that being generous opens up financial opportunities. Shetty references his culture’s tradition, where finding money and treating it with respect by giving it to charity reflects a generous mindset.
They share personal anecdotes showing that generosity can lead to receiving opportunities in return. Howes discusses an experiment where he acknowledged every monetary gain with gratitude, while Shetty offered opportunities like getting someone on a billboard in Times Square when he felt he had nothing else to give. This approach led to fruitful relationships and opportunities.
Gratitude For Financial Blessings, Big or Small
Respecting Money As a Tool, Not For Hoarding or Abuse
The hosts emphasize having a grateful attitude toward money and treating it ...
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Cultivating a Mindset of Abundance, Generosity, and Gratitude
Additional Materials
Counterarguments
- While cultivating a mindset of abundance can be beneficial, it's important to recognize that systemic issues and inequalities can significantly impact one's ability to generate wealth, regardless of their mindset.
- Approaching people with energy and excitement may not always result in financial opportunities; success often requires strategic planning, skills, and sometimes a bit of luck.
- The concept of a "money personality" is not universally accepted or supported by empirical evidence, and financial outcomes are often the result of complex factors beyond individual personality traits.
- The idea that one can simply "rewire" their scarcity belief system may oversimplify the psychological and socio-economic factors that contribute to such beliefs.
- The notion of being a "magnet for money" can be misleading, as it implies that positive thinking alone can attract wealth, which may not always be the case in practical scenarios.
- Generosity is a virtue, but it does not always guarantee that financial opportunities will be attracted in return; sometimes, generosity can be taken advantage of without reciprocation.
- Expressing gratitude toward every amount of money received is a positive practice, but it should not overshadow the need for financial literacy and responsible money management.
- The belief that true wealth and happiness come from appreciating what one currently possesses may not address the real financial st ...
Actionables
- You can start a "gratitude and abundance" journal where each day you write down three financial opportunities you're grateful for, no matter how small, and one way you've been generous with your resources. This practice helps shift focus from scarcity to abundance and reinforces the belief that generosity can lead to more opportunities. For example, you might be thankful for finding a coin on the street, sharing a money-saving tip with a friend, or even having the means to buy a coffee.
- Create a "money energy" playlist with songs that make you feel positive and wealthy, and listen to it while managing your finances or when you need a boost in your money mindset. Music can influence emotions and thoughts, so by associating these uplifting tunes with money, you can foster a more relaxed and abundant attitude towards your financial situation. Think of songs like "Money (That's What I Want)" by Barrett Strong or "Rich Girl" by Hall & Oates, but with your personal touch.
- Engage in a "proportional giving" challenge where you set aside a percentage of any n ...
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Developing Skills for Sustainable Financial Abundance
Lewis Howes and Jay Shetty discuss how focusing on skill development, rather than seeking immediate wealth through shortcuts, can lead to sustainable financial abundance.
Developing Skills and Expertise
Prioritizing Skill-Building Over "Get-rich-Quick" Schemes or Passive Income
Lewis Howes and Jay Shetty emphasize the importance of investing time and effort into developing one's skills. Howes reflects on his own experiences of using his talents, such as curiosity, to create opportunities after a career-ending football injury. He credits his skill at asking questions for the success of his podcast. Similarly, Shetty advises listeners to deeply invest in their skills, bringing passion and dedication even to jobs they may not love.
Jay Shetty also recounts reaching out to a thousand people when he was close to broke, offering services like video editing and consulting, tasks that, while not his long-term goals, helped him build a foundation for future projects such as starting his podcast. Shetty also advises focusing on continuous improvement in areas where one has knowledge and experience, highlighting the long-term value and financial return from such investments.
Creating Multiple Income Streams From Skills and Talents
Monetizing Knowledge, Abilities, and Unique Offerings
Howes discusses the importance of leveraging and monetizing skills to create multiple income streams. He points out that soft skills like creating connections can be just as valuable as formal education. The guests share success stories, such as Shetty partnering with NASDAQ to interview guests on NASDAQ Live and a person who showcased his editing skills at an event, leading to job inquiries.
Howes himself started by connecting with CEOs and executives to offer LinkedIn profile optimizations, a service he initially provided for free but eventually monetized. He used the earnings to launch his podcast, "The School of Greatness."
Maintaining a Mindset of Continuous Growth and Expansion
Financial Abundance Through Li ...
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Developing Skills for Sustainable Financial Abundance
Additional Materials
Counterarguments
- While developing skills is important, not all skills are equally marketable or in demand, and some may not lead to financial abundance despite significant investment in their development.
- Creating multiple income streams can be beneficial, but it also requires a level of privilege, resources, and time that not everyone has access to.
- Monetizing skills and talents assumes a market for those skills, which may not exist for everyone, and can be influenced by external factors such as economic downturns or changes in industry demand.
- Continuous improvement and lifelong learning are valuable, but they can also lead to burnout if not balanced with rest and personal life considerations.
- The idea that confidence from learning new skills will lead to financial success may not account for systemic barriers that prevent certain individuals from capitalizing on their skills.
- The mindset of continuous growth and expansion may not be sustainable or desirable for everyone, as some individuals may prioritize stability or work-life balance over constant growth ...
Actionables
- You can start a skill-swap community online where members exchange services to practice and improve their abilities. For instance, if you're good at graphic design and want to learn social media marketing, you could offer design work in exchange for marketing lessons from someone looking to enhance their design skills.
- Create a personal "skill incubator" challenge where you dedicate a month to learning and applying a new skill that can generate income. This could involve using free online resources to learn basic web development and then offering to create simple websites for local small businesses at a discounted rate.
- Develop a "contribution account" where a percentage of ...
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Avoiding the Pitfalls Of Chasing "Get-rich-Quick" Schemes
Lewis Howes reflects on his earlier behavior of hoarding money out of fear of being broke, which led to missed opportunities for enhancing his well-being.
Recognizing the Dangers Of Seeking Instant Financial Gratification
Wealth and Abundance Require Patience, Discipline, and Effort
Lewis Howes discusses his past efforts to make quick money and how these attempts often resulted in loss and pain, ultimately realizing that true richness can come without money through a shift in mindset that embraces patience, discipline, and effort.
Cultivating Wisdom to Discern Opportunities From Risks
Resisting the Temptation to Gamble For Quick Profit
Howes shares a tale of finding a 1945 wheat penny that might be worth up to $4,000, highlighting that while wealth can appear unexpectedly, it's not typical for every discovery to result in financial reward. Jay Shetty warns against the lures of fast financial gains, emphasizing the need for investment understanding as rapid successes often come with equally rapid losses. From their personal experiences, Shetty and Howes understand that quick financial wins are usually followed by subsequent losses and grief.
Shetty shares anecdotes about friends who squandered savings on crypto and real estate without proper understanding, emphasizing that it's crucial to invest in what you know and avoid jumping into hazardous ventures just because others are.
Prioritizing Long-Term Financial Health Over Short-Term Gains
Adopting a Systematic Approach To Building Wealth
Howes suggests that managing one's fear and anxiety about money is vital for a h ...
Here’s what you’ll find in our full summary
Avoiding the Pitfalls Of Chasing "Get-rich-Quick" Schemes
Additional Materials
Counterarguments
- While patience, discipline, and effort are important, some individuals have achieved financial success through calculated risks in short-term opportunities.
- Not all quick financial gains lead to rapid losses; some people can and do profit from timely investments and exit strategies.
- Investing in what you know is generally sound advice, but diversification across different asset classes, including those less familiar, can also be a prudent strategy to mitigate risk.
- Fear and anxiety about money can sometimes be a rational response to financial instability, and it may encourage more conservative financial behavior that protects assets.
- While unwise splurging can lead to debt, responsible use of credit can also be a tool for building credit history or leveraging investments.
- Saving and investing are important, but they must be balanced with quality of life considerations and the potential for inflation to erode savings.
- Long-term financial planning is crucial, but there are legitimate scenarios where short-term financial actions can be benefi ...
Actionables
- You can create a "Patience Portfolio" by setting aside a small amount of money each month to invest in long-term, low-risk assets. This strategy reinforces the concept of patience and discipline in wealth building. For example, choose index funds or bonds that historically have provided steady returns over time, and commit to not touching this investment for a set number of years.
- Start a "Knowledge Jar" where you deposit a fixed sum of money each time you learn something new about finance or investing. This encourages investing in what you know and ties financial growth to personal education. For instance, every time you finish a book on financial literacy or attend a seminar, you put $20 into the jar. Once the jar reaches a certain amount, invest that money into a venture or stock you've researched and understand well.
- Implement a "48-Hour Rule" for all non-essential purchases to ma ...
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