Sign Up to receive our monthly newsletters.
If you’re like most people you’ve gone for periods of time without really thinking about how you spent your money. Maybe you even avoided looking at your bank statement so you wouldn’t see how much money you spent & how little you saved. If you catch yourself doing this, you need to look at the benefits of money mindfulness.
It’s something a lot of people do, especially nowadays when we can easily spend our money without handing over cash. If you’ve ever looked at your bank account & wondered where all your money went, you probably weren’t being mindful.
Money mindfulness means being intentional & present with how you spend your money. It means not mindlessly paying for something with little thought to whether you can afford it. Mindfulness can lead to considering whether you need to spend money or if there are ways you could spend a little less.
Here are two main benefits of money mindfulness:
You’ll Be More in Control of Your Spending
Money mindfulness doesn’t mean you have to change your spending habits, although that is a likely side effect. It means knowing why you’re spending & what you’re spending your money on.
Let’s say you always start your day buying a cup of coffee. Over time, the cost of that cup of coffee adds up even if it isn’t expensive. It’s a habit! You’re used to buying that cup of coffee, so it becomes ingrained & you don’t even think about the cost.
If you’re mindful of your money, you’ll become more aware of spending that money. You should ask yourself if you need that cup of coffee, whether it makes you happy & if it’s worth the expense. If the answers to those questions are yes, then great. However, if the answers are no, you might want to consider making your coffee at home to save yourself money.
Either way, you’re not just making a purchase because you’re used to doing so. You’re making it after asking yourself if it’s something you need & that you feel good about.
You’ll Likely Save Money
When you become more mindful about your money you’ll likely save more. That’s because there will be times when you’ll ask yourself if a purchase is something you need or will bring you joy & the answer will be no. By being more mindful, you’ll start to walk away from those purchases & over time may find you have more money in your savings account.
You may also find that money mindfulness means you eat out less or create a budget for yourself. Consequently, you may also start limiting yourself to only buying groceries you know you’ll eat. You don’t have to make these choices, but once you become intentional with your spending you might find these steps become important to you.
When you practice mindfulness, you might start restricting your spending to purchases that align with your goals & values. Furthermore, you may discover patterns in your spending, such as you tend to go on shopping sprees when you’re feeling sad, bored or under stress. Realizations like this may lead you to find more productive ways to deal with sadness, stress or boredom or other emotions, further saving you money.
Money mindfulness provides you with a way of making sure you are comfortable with how & where you spend your money. It gives you control over your spending rather than letting the habit of buying things control you.
Although money mindfulness doesn’t mean you have to change your spending habits, understanding how & why you spend might result in a change in how you think about money & could result in greater savings.
Contact us for insight on money mindfulness. Our accountants & tax specialists can help you with mindfulness by analyzing your spending & providing advice.