Mindfulness is no longer a catchphrase only associated with yogis. Now, it’s something that everyone needs to practice, especially when it comes to your finances. The thing is, not everyone knows what mindfulness really is or how to practice it. Your relationship with money can be complex and, at times, emotionally draining. That’s why you need to learn how to be mindful when making financial decisions. Mindfulness isn’t learned overnight, but it can be a massive help to you when getting your finances in order. Here’s how to practice mindfulness with your finances.
What Exactly is Mindfulness?
Mindfulness is all about being present. It’s about being able to connect with your feelings outside of what’s happening around you. Instead of focusing external stimuli, you’re able to concentrate how you feel right now, and not thinking about the past or what might happen in future. So, when it comes your money, mindfulness can improve your financial well-being.
Be Aware of Your Spending Habits
When you learn how to live in the now, you become more aware how you’re spending your money. You may be more aware of patterns that lead to impulse spending or identify habits that lead to overspending. It’s important to identify where your weaknesses are and how you can ensure you are able to make better financial decisions. If you’re thinking about getting a credit card, you need to understand how they work.
If you’re a student, there are credit cards options out there. However, you need to arm yourself with the right information before you apply. If it’s your first card, you can review a guide that explains the different types of cards and to choose the right one for you. Choosing your first credit card can be difficult because of the potential APR rates that come with them. Most credit card companies offer their clients a grace period of a year without this rate. But once it ends, you could be facing a rate of 20 percent or more. Diligence is vital in this scenario.
Less Financial Worry
No matter how old you are, in some regard, money can buy happiness and financial problems are the leading cause of stress. In the best case, you have financial issues that are quickly resolved and never happen again. In the worst case scenario, your money woes snowball out of the control, causing you to lose sleep, fall behind on other bills, and possibly cause strife in your relationships. But when you’re more in tune with yourself, you’re more equipped to prevent major financial downfalls from happening. You’re on top of your spending and always make sure you have enough to cover your expenses.
Make Better Investment Decisions
People as young as 18 can start investing, so knowing how to practice mindful investing is a must. Mindful investing includes taking as much as time as you need to research the different types of investments and how each one can affect you. Investing isn’t something to take lightly; the negative effects can be nearcatastrophic if things go the wrong way. When you’re mindful, you’re less likely to make impulsive investment decisions. In fact, many professional investors will tell you that backing out of deals or refraining from purchasing a specific asset saved them thousands.
How to Avoid Triggers
Truth be told, even the most dedicated savers make money mistakes. But just because you make a few mistakes doesn’t mean you need to throw in the towel. There are ways to get back on track and avoid what triggers you. First, identify what these triggers are. Since we’re talking about saving money, a very common trigger is purchasing everything that piques your interest. It’s normal to want to splurge and buy something we really want, but you need to think of the potential ramifications first. Will you still be able to afford your monthly expenses after all is said and done? If your answer is yes, then there shouldn’t be too much of an issue.