The term mindfulness is used a lot in relation to meditation and psychological therapies to describe being aware and paying attention. But what is financial mindfulness?
Financial mindfulness is simply described as having awareness and paying attention to your finances and financial behaviours. It means more than being money smart or financially savvy, as it includes the capacity to regulate emotional responses that can lead to unhelpful financial behaviour and financial stress.
It not necessarily about having a good financial position or good financial health, but an active process of being aware of and paying attention to your thoughts, feelings and financial behaviours in a way that is helpful.
Financial mindfulness is related to the term financial wellbeing, which is broadly defined as “satisfaction with your financial situation”. Financial mindfulness does include financial wellbeing, but also includes financial stress, their symptoms and behaviours.
Financial mindfulness is a practice that can lead you to financial wellness. Wellness refers to the mindset formed from the way a person evaluates their finances and how it makes them feel. Mindfulness is the process of paying attention to your finances and taking appropriate positive action so that you can achieve financial wellness.
To summarise, Financial mindfulness, is an active process of paying attention to your finances, financial behaviours, attitudes and beliefs around finances. It is keeping awareness of your thoughts, feelings, actions and financial environment in mind so that you can make better financial choices.
Financial mindfulness helps you to focus on what you need to do, empowers you to make sound decisions, and ultimately invest in your financial wellbeing. Click on the link below today and download our free app to learn more about financial mindfulness and how it can assist you in increasing your financial wellbeing.