Mindfulness and Financial Planning
Swarna Kalyan
Purpose-Driven Leadership | Transforming Customer Experiences | Nonprofit Organization leadership | Unlocking Opportunities | Senior Manager in Financial Services & Insurance|
Recently, when I was discussing about Financial Planning with a client, and he quoted that he is a mindfulness practitioner and he doesn't see how planning for the future is in line with his beliefs. This conversation got me thinking on the misconception that think or planning for the future is ignoring the present.
For those of you who are new to Mindfulness, it is a conscious practice of being the present, not focusing on the past or the future.
I strongly believe, a well laid out financial plan is in sync with mindfulness. Let me share the 3 ways we can achieve both without any conflict of ideology.
Awareness
Awareness is the first step to a good financial planning. Knowing where you are now. What is your mindset that affects your finances now, is the first step I always start of with in financial planning. It is ironic to think that if we focus in the present, our future cannot be planned. The truth is, if we plan to be fully aware of our present, then, this lays a road to a beautiful tomorrow. Awareness of your needs vs wants, is the first step to a good Financial plan.
Reducing Waste/ Spending
Second step to a good financial plan is to focus on the cashflow analysis. When we do a cashflow analysis, we go through a process to understand where we are spending, is it wasteful, is it necessary and can it be avoided. This puts focus on the present, which is in line with mindfulness. This in turn, take us to the process of budgeting and saving on things that we end up spending unnecessarily.
Worry less about finances and appreciation of life
The third step in financial planning is to use our first two steps to eliminate debts and increase our Net Worth. Having a good financial plan helps us to pay off the debts, and increase our Net Worth. This results in having greater life choices and flexibilities and more space to nurture mindfulness.
Focusing on the present is the most important step in financial planning and hence, it is a very essential thing for anyone to focus on first if they want to achieve mindfulness.