If you are among those who are surprised to find out that money mindfulness is a thing, then you have come to the right place. No matter how much you earn, what’s your job, and no matter your gender or marital status, being mindful of your money is the only way to take complete charge of your financial life.
Let’s admit it. Most of us have gone through periods without actually being mindful of the way we deal with our finances. If only we had taken a closer look at our bank statements, we would have realized how much we have spent and how little saved.
If you are one of those who believe money is just a necessary evil, then you will never hesitate to spend it. And if you think you will never have enough money no matter what you do, you’ll end up just saving it. Either way, you aren’t really doing much to achieve money mindfulness.
What is money mindfulness, and why is it so important?
Believe it or not, money mindfulness isn’t some mystical new-age nonsense but a mindset that helps us improve our lives significantly. It is about cultivating an awareness of the things that matter to you, including money. Everyone must pursue it, and here’s why.
Money mindfulness is placing a full focus on what you do with your money. For instance, if we don’t pay attention to our expenditures, our savings will disappear like chips from a bag. If we keep losing track of the bill payment deadlines, we will end up paying late dues and eventually face a service cut-off.
And for those who like to “live” in the present, budgeting finances is all the more critical. You don’t want to face a mid-life crisis after realizing you could’ve done more with the savings when you had the chance.
Besides, in many countries, talking about money is taboo, as it is often associated with uncertainties in the future and a fear of the unknown. Many of us shudder at the thought of not being able to pull through an unprecedented emergency, hospitalization or simply, retirement.
While money mindfulness cannot help you predict what’s going to happen in the future, it will certainly help you stay prepared for it, mentally as well as financially.
So, how do we go about it?
Okay, so far, we have established that we need to be more aware of the money than just glancing at our account balances once in a while. But how do we do it?
First and foremost, remember the thumb rule about wealth management – anything that gets measured, gets managed. So, start with creating a budget by calculating how much comes in and how much goes out every month.
Then, the next step is to make money a significant part of your everyday life. Start by setting short-term, midterm, and long-term goals. While short-term goals can include finding ways to cut as little as $10 from your everyday spending, the long-term will involve saving up for that dream vacation or the house.
Get financially organized
Once goals are set, bring money mindfulness by making it a daily routine to go over your transaction history at the end of the day. This way, you are not only becoming more aware of your spending habits but also making money a much more relaxed and comfortable matter to deal with.
While doing so, remember to jot down comments against each transaction. It will then help you review whether you actually need that twice-a-day dose of caffeine from your next-door coffee shop or can do away with it from time to time. You’d be surprised to know how much those extra whips of cream and drizzles add up to.
Seek help from technology
As we have seen in most crises, technology has often come in very handy. Be it the ultra-personalized smart virtual assistants like Facebook chatbots who are no longer restricted to being just a personal assistant, or the video conferencing apps and social media that give us a glimpse of the outside world even when being cooped up at home.
So, don’t hesitate to take the help of popular budgeting tools available online that help you keep track of many aspects related to finance. For instance, it will alert you when you need to cut down on entertainment and leisure expenses to achieve your housing goals. For those who are always facing the cash crunch, the tools will guide you on how to manage your spendings smartly and effectively.
Invest, invest, invest!
Lastly, but perhaps most importantly – start investing! As the famous saying goes, someone is enjoying the shade today because someone planted a tree a long time ago. So, while you may question the additional task of investing when you are already managing a tight budget and struggling to pay that debt, make no mistake, investing might be the most important of all.
A modest investment is better than having no investment at all. Take the step-by-step approach and open a brokerage account. There are tons of investment options available today, from traditional stock markets to the new-age cryptocurrencies. Do weigh the pros and cons carefully before putting your money into an opportunity.
A personal note to parents
If you’re already trying to manage a budget and pay down debt, you might wonder why you have to add another financial task to your to-do list. But this one might be the most important of all. I am reminded of Tacitus, considered to be one of the greatest Roman historians, whose observation holds true particularly today,
The desire for safety stands against every great and noble enterprise.
While some might be concerned only about personal profit for their investments, the world can be a safer and brighter place if people would look at the future with confidence, and place their money where it can help secure it.
Yes, money mindfulness is essential. Not because you need to learn to save more, or change your shopping habits entirely, but simply because it teaches you to be conscious about your spending habits. Current economic uncertainties and COVID-19 catastrophe have taught us that wealth matters as much as our health – for us and the networked world out there. It is never safe to look into the future with eyes of fear; investing must be done with full confidence.
One strategic advice:
The recession may be unavoidable, but it need not be hazardous for investors. By keeping time-tested – or more specifically, recession-tested – investment values and practices in mind, investors should be able to ride out this downside event with a certain measure of assurance and hopefully, emerge from it more resilient.
