Mindful Money Management

According to Statista, focusing on your financial goals is the second most common New Year’s Resolution for Canadians. So if you’ve been thinking about setting a New Year’s intention to get your finances in order for 2022, you’re not alone.

Given the Covid-19 pandemic and the impact it has had on the economy, especially within the yoga community, it’s no surprise that people want to be more conscious of their financial habits. If you’re wishing to become more skillful with your money in the new year, there is one place where you could start—your mat.

To make space for a financial mindset, you will have to create an abundance of spiritual wealth that aligns with your yoga practice, which might force you to have a shift in your perception of what the purpose of money is for you.

Many don’t seem to realize, but yoga and personal finances have a lot more in common than you might think. Here are the most similar characteristics between the two of them:

1. Both involve building tapas, or discipline.

2. Both benefits depend on compounding.

3. Both require patience, focus, and a long-term commitment.

It’s important to remember that change doesn’t happen overnight and it’s just as important to remember that each small effort you put into regularly adds up to becoming a lot over time. And I’m not saying it’ll be easy and there sure isn’t only one way to develop a healthy relationship with your money, but it all starts with your mindset and building that foundation of discipline, patience, and commitment—just like in your yoga practice.

Here are some mindful money tips to help you start the New Year off right:

Create a Yearly Budget

You may think that this tip is common knowledge, but it doesn’t mean everyone’s doing it. First, you’d want to calculate your after-tax income. Second, you’ll subtract your fixed expenses, like your rent or mortgage payment, and groceries. Then, you’ll subtract the rest of your expenses accordingly, like entertainment, eating out, savings, and travel.

Practice Financial Hygiene

You always make an effort to focus on your mental and physical health. Now it’s time to start focusing on your financial health as well. You can start by creating a “financial hygiene” routine for yourself by monitoring your yearly budget, as we mentioned above, but on a monthly basis.

Reflect on Your Emotional Spending

Know the difference between your needs and your wants. Understand why you’re spending the amount you're spending—is it necessary or is it luxurious? When we start asking ourselves what the purpose of each purchase is, we can see if we are either buying from a practical perspective or an emotional perspective.

Think Before You Buy

The temptation will always be there, but you can beat the urge to buy by doing some calculations. Calculate what you make per hour after taxes. Let’s say you make $17 an hour and this blazer you want to buy is $170. Think to yourself, is this blazer worth working 10 hours for? Doing this simple calculation in your head can change your perspective.

Pay Now, Not Later

Your credit card is not a bank account—don’t treat it like one. It is something you have to continuously monitor and manage. When it comes to a credit card, you want to pay your credit card off every 14-21 days to avoid paying interest. If you have multiple credit cards, look into consolidating them. Stay away from getting a store credit card in general, if you’re not financially disciplined.

Seek Support

A common misconception is that those who don’t have a large sum of money can‘t invest or can’t seek out a financial advisor. You’re never too young and you’re never too small in terms of assets to have support from professionals. Many professionals would be happy to take you on and help you grow.