The benefits of mindfulness to our physical and mental health and our relationships have been established through numerous studies. Yet, few people associate this pathway to well-being with financial success. If mindfulness means being focused and aware of the present without passing judgment, the same discipline can be applied to money management, too.
You can practice money mindfulness by being aware of your financial situation, paying bills and credit cards on time to avoid penalties and added interests, spending with discretion and investing smart. Practicing financial mindfulness today paves the way for your kids’ college education and an enjoyable and worry-free retirement in the future.
Here are tips to achieve money mindfulness for financial success:
Begin your day with meditation.
Meditation is an ancient practice that helps us cope with stress and anxiety and brings us serenity. It’s goes hand in hand with mindfulness, one type of meditation that focuses on the present and awareness of the self and our surroundings without passing judgment.
If you’re like most people, the first thing you probably do upon waking up in the morning is to check your cell phone for messages and emails. Why not put off this habit for later and spend a few minutes for mindful meditation? Focus on your breath and be still. When you develop awareness, you become mindful of your actions and thoughts throughout the day, including where and how you spend your money. When you are financially mindful, you are less prone to impulsive and frivolous spending.
As much as possible, pay with cash.
Are you in the habit of swiping that little piece of plastic? How about using cash or a debit card next time? Paying in cash or debit card supports money mindfulness since money is more tangible in these two forms. Compared to the ethereal quality of a credit card, cash or debit card payment lessens the temptation to buy nonessential things. You also tend to lose track of expenses if you’re using a credit card and your purchasing whims can add up without you noticing. Although it’s really a matter of perception, if you don’t have the tough discipline for using credit cards judiciously, stick with cash.
Invest without emotional involvement.
Being mindful in investing helps you to be focused and take an objective and nonjudgmental stand when trading and investing. The nonstop flow of market data can be overwhelming, making it necessary for you to maintain an unbiased mind in determining your next course of action. By prioritizing a specific frame of reference, you are ready to take on new information about the market as they come, and you can make informed decisions based on your reference.
Focus is of utmost importance, more so if you’re an online trader. Get rid of distractions by turning off your phone, keeping nonrelated noise out and informing the family that you cannot be disturbed, especially if you’re doing day trading, which has the potential to make your investment grow quickly, or vanish because your mind wandered. Learn what is day trading before going into this type of trade though.
Be kind to yourself.
Develop self-compassion if you are suffering or you made a mistake. Mindfulness helps you to be kind to yourself as well as to others. If on a rare occasion, you gave in to your fancy and bought an expensive pair of shoes then regretted it, don’t torture yourself with guilt. If you were duped in a scam, learn your lesson and move on. Exhaust all means to recover your money. Return the impulse purchase. Go after the scammer through legal means. But don’t flagellate yourself. We all have errors in judgment sometimes. It’s about rising up again and not repeating the mistake.
Money mindfulness is not as well-discussed as mindfulness in other aspects of our lives. But the absence of it can spell disaster later. It’s about time this subject matter is taught and spread since money is the currency by which we meet our basic and secondary needs.