What is Mindfulness?
Mindfulness in the context of personal finance has the same definition and application as it does in every other part of life. It is the non-judgmental awareness of the present moment BEFORE we apply any narrative.
This realistic view of life sounds nice…
...but as humans, we don’t naturally exercise mindfulness without practice or guidance. Below, we outline why mindfulness is critical to financial success—and how Mindful Money helps you maintain this approach in your financial life.
A Lack of Mindfulness:
Unsuccessful investors re-act to market movements, media headlines and their own biases
When left to our own devices, most humans do not make financial choices in alignment with their best interest
According to behavioral finance research, humans are never in possession of all of the facts nor do they remember their aim. Even if we were to remember, most humans are unable to decide in the moment what the best choices are to move towards their goals. Our decisions are corrupted with emotional and cognitive biases, so we lose access to reason time and again.
Mindfulness at Its Prime:
Successful investors ACT rationally based on their well-considered and heavily stress-tested financial plans
With the support of an advisor, making wise financial decisions is the norm—not the exception
We all know we should eat less processed food, drink less alcohol, sleep 7-9 hours a night and take a daily walk in a forest. But... few of us do it. Likewise, doing what’s in your best financial interest can be difficult. An advisor holds you accountable to make quality decisions. In fact, after creating a comprehensive financial plan and an evidence based portfolio, ongoing coaching is where advisors add the most value.
Mindfulness Is a Doorway to Reason at the Precise Moment When Reason is Out of Reach
We’re committed to keeping that door open for you. At Mindful Money, we’re here to harness an enlightened approach to your finances—helping you stay on track towards lasting financial health.