What Yoga Can Teach You about Managing Your Finances
Listen to What Yoga Can Teach You about Managing Your Finances
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The ancient Indian practice of Yoga involves the union of physical, mental, and spiritual discipline for our overall well-being. The practice has gained popularity globally over the years for its numerous health benefits. And amid the outbreak of the COVID-19 pandemic that brought to fore the importance of strengthening of immune system and dealing with stress/anxiety, the relevance of yoga has increased substantially.
Likewise, the pandemic has made many realise the importance of prudently managing their finances to optimally grow their wealth and prepare for unforeseen events. As it turns out, the steps to wealth creation and achieving financial security for yourself and your family is not very different from perfecting yoga poses.
So on the occasion of the seventh International Yoga Day, we explain how you can incorporate lessons from yoga to become financially fit.
1) Gain the right knowledge
Practising yoga without proper knowledge about postures and breathing techniques can not only prevent you from getting maximum benefit, but can also result in injury. Similarly, it is important to equip yourself with the weapon of knowledge to gain better control over your finances and save yourself from bad investment decisions.
Ideally, you should avoid investing in avenues that you do not fully understand. It is crucial that you do your own research before making an investment decisions. Carefully read the product-related documents to have a better understanding about its characteristics, potential benefits, risks involved, etc. and make an informed decision. If you feel unsure about financial planning and making the right investments, it would be better to seek professional help.
2) Stay focused
Yoga is essentially about shutting outside distractions and maintaining focus throughout the duration of the asana to calm the mind and revitalise the body. Investors can benefit by applying the same principal in their investment approach.
Often, investors tend to take decisions based on short-term market trends that do not necessarily matter over the long term. Besides, many investors often take investment decisions based on advice from friends/family, Whatsapp chats, etc. which are usually not reliable. Instead, you should concentrate choosing worthy investments depending on your financial goals, risk appetite, and investment horizon and stay invested regardless of the market conditions till your goal is achieved.
(Image source: luis_molinero - www.freepik.com)
3) Balance is everything
Yoga helps you to strike a balance between physical fitness and gaining peace of mind. If you want to grow your wealth with savings and investments, you need to be mindful about expenses as well.
Before you start investing, determine the amount you will be able to save every month. Ace investor Warren Buffet rightly said, "Don't save what is left after spending, but spend what is left after savings". As far as possible, avoid taking high-interest loan to fulfil your goals. A proper budgeting exercise can help you to cut down on unnecessary expenses which can then be utilised to achieve your goals.
4) Patience is the key
Some yoga poses can seem difficult to master. But with practice and patience you will be able to perfect it and slowly but surely you will be able to reap the benefits. Similarly, it is important to be patient with your investment, especially if you are investing for long term goals.
When you invest in long term goals, choose a suitable avenue to invest in depending on your risk appetite. Equities are a preferable option for long term goals as they have the potential to generate inflation-beating returns. By being patient with your investment, it will be able to tide over market fluctuations and you will benefit from the power of compounding over time.
5) Flexibility is important
If you practise yoga regularly, your flexibility will increase which in turn improves your energy and fitness levels. When it comes to investment, it should be flexible enough to accommodate your changing needs and to deal with uncertain situations. Ask yourself the following:
Do you have enough savings to deal with contingencies like medical emergencies, job loss, etc.?
Are you prepared for any unexpected rise in expenses?
Do your investments have enough liquidity?
If the market were to correct sharply, can you stay invested long enough for it to recover? and so on.
If your answers to above questions are in negative, you may need to review and/or rebalance your portfolio. Further, make it a habit to review your investment portfolio at least once a year and make changes if necessary.
To conclude
The basic principles of yoga can be used to improve your financial fitness. In this current world which is full of uncertainties, it is essential that you carefully manage your finances. And just like it is important to start inculcating healthy habits when you are young, you will benefit by prudently managing your finances from an early age.
PersonalFN believes that it is possible to fulfil your envisioned goals without jeopardising your personal desires, with the help of sound financial planning and suitable asset allocation.
You can seek the assistance of unbiased PersonalFN's Financial Planners who help you achieve your financial goals.
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Warm Regards,
Divya Grover
Research Analyst
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