WHAT IS FINANCIAL MINDFULNESS AND HOW CAN IT BENEFIT YOU?
At its core, financial mindfulness helps you make strategic rather than emotional choices about your money so that you feel less anxious about your finances. But rather than erasing your feelings from the decision-making process entirely, financial mindfulness encourages both your brain and your gut instincts to work together.
For instance, when you make big purchases based on your mood, you’re basing it “primarily on your emotions, as opposed to making a more balanced decision. By detaching yourself from the emotional pull of spending money, “financial mindfulness" brings a more harmonious relationship with money matters that unwittingly impact the alignment of your wants and needs.
In other words, when you’re being financially mindful, you’re less likely to binge shop as a way to deal with stress at work because you know you’ll regret the credit card bill that comes later.
HOW TO PRACTICE FINANCIAL MINDFULNESS TO CURB SPENDING
But how do you put financial mindfulness into practice? Here are a few points:
Check in with yourself before, during and after making a purchase to take stock of how you’re feeling. Be honest with yourself — not judgmental — so you can get a sense of the kinds of purchases that fulfill you the most.
Plan your purchases in advance, ideally at a time when you’re feeling relaxed and clear-headed. Make a list of purchases you want to make for the next quarter or even the coming year. The next time you’re tempted to buy something, come back to this list to see how the purchase aligns with what you actually need.
If the purchase in question isn’t on the list, ask yourself, “Will I be thankful I made this purchase tomorrow?” If the answer is no, skip it for now. The goal is to slow down and think critically about each spending opportunity.
It may not come naturally at first, but the more you put these tips into practice, the more your mindful spending will become a habit. Over time, you may feel it gets easier to stick to your budget — and you may even notice that you’re making a bigger impact on your debt and more progress toward your financial goals.
Have questions about your finances? Click on the link below to schedule an appointment.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite and Gowdy Financial Group, LLC., are not directly affiliated with any broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.