What is money mindfulness?
Money mindfulness is the bridge between mindfulness (The state of being focused on and aware of the present moment) and personal finance.
As a concept, it covers the development and application of a mindful approach to your financial decisions. This includes your budget and your general behaviors and attitudes regarding money.
Practicing money mindfulness is about cultivating a healthier relationship with your finances. Through intentional decision-making, you can steer yourself to a better financial future.
Money mindfulness is not about getting rich or overnight cures to financial troubles. It’s simply a process toward a more controlled and mindful way of handling your financial life.
Mindfulness is about taking that pause between a financial decision and the actual payment.
How can I be more mindful with money?
1. The first step is awareness.
- Sit still, take a deep breath, and start thinking about your financial behaviors.
This isn’t about assessing your exact spending or creating a budget.
Instead, it’s about pinpointing the way in which you naturally, without thinking hard, interact with money. Without understanding your past and present, there will be no changes to your future.
2. Next, look into your emotions.
Emotional awareness is a difficult but necessary step.
When assessing your nature and past financial habits, connect them with your emotions. Look honestly into the emotional influences on your financial decisions.
- When you think about making a big purchase, what emotions pop up?
- How do you feel when you think about your bank account?
- Or about your last shopping trip?
- Do you feel satisfied?
- Guilty?
This sets the foundation for change. So, consider how you can shift your mentality in a way that is healthy and beneficial to you.
3. The next step is the conscious consideration of your financial values.
- What are your financial values?
- Has your relationship with money aligned with those values?
- How can you change your behaviors to align with your financial values?
Spend money more consciously going forward. Before handing over some cash or swiping your card, think back to the “awareness” steps above.
Mindfulness is about taking that pause between a financial decision and the actual payment.
So, consider how your spending aligns with your values and long-term financial goals each and every time.
Being modest and gracious is a part of the development of money mindfulness as well.
A lack of gratitude for what you have can lead you to spending that you actively or subconsciously believe will take you closer to where you want to be. Try practicing gratitude for what you have and for what each dollar (optionally) spent buys you.
Lastly, revisit your money mindfulness from time to time. Your life situation will change often and your financial considerations should shift at the same time.
Be ready to set new goals and reassess your values when you start to slip.
Can practicing mindfulness reduce financial stress?
Yes.
Money mindfulness is all about reducing stress and the other negative emotions that money troubles can cause.
- Financial stress often arises as a result of uncertainty and fear.
- Guilt can arise as a result of unthoughtful spending.
- Depression can result from feeling a lack of control over your finances.
Mindfulness can help you tackle these issues with greater awareness of the relationship between finance and mental health.
Mindfulness practices that you may be aware of in personal development spaces can also be used well towards money mindfulness.
When we say “sit still and take deep breaths” we are not exaggerating. Deep breathing and other typical mindfulness practices have real effects on your nervous system that enable you to make more careful decisions.
These practices also reduce overall stress, and that includes the stress that comes from poor financial conditions.
Mindfulness overall teaches that you must accept the present moment as it is.
That’s the other part of the anti-stress exercises; you must accept reality and remain collected while doing so. Financial mindfulness is about letting go of present stress and replacing it with clarity in a long-term vision.
Lastly, by improving your relationship with money, your finances improve over time.
There is no better way to alleviate financial stress than to actually improve your financial situation. The hard part is understanding and accepting that it’s a long-term process and there are no certain guarantees.
While that may sound stressful, eliminating causes of stress entirely is not the goal of mindfulness. It is about mitigating and eliminating the stress itself.
What are some examples of money mindfulness practices?
There are many little ways in which money mindfulness should be practiced.
1. Mindful spending.
When you’re considering a purchase, use mindfulness techniques to remove strong emotions from the decision-making process. Consider thoughtfully what the results of the purchase will be. Weigh the costs and benefits alongside your financial values.
2. Gratitude.
Think about the good side of your finances each day.
Take the time to take stock of the ways in which you are satisfied. There are always many people in worse financial situations than you.
3. Reviewing spending.
Financial best practices are a core part of money mindfulness.
Take stock of your recent spending and re-evaluate whether you’re being true to your financial values.
4. Calm down.
Take the time to do breathing exercises and incorporate these exercises into each part of your life.
Focus on the sensations of air entering and leaving your body. Give yourself a chance to get grounded.
Conclusions
Financial mindfulness means applying awareness practices to your financial life to help you get a better grip on your money. This includes:
- being focused on the present moment
- pausing before you make a purchase
- doing some work on how you feel about how you spend money
By focusing on money mindfulness, you can reduce financial stress and make calmer, more rational spending decisions.
Editor’s note: This article was originally published Jun 8, 2024 and has been updated to improve reader experience.
Thank you I needed this at this point in my life
We’re so happy you found us at the right time Helen!