Improving Financial Wellness- What's it got to do with yoga?

The root chakra, located at the base of the spine, is responsible for our well-being. The root chakra is the base chakra- the foundation of balance and the chakra we need to ground and balance before working into higher chakras. When our root chakra is balanced we feel secure, grounded, embodied, present, confident, and safe. 

There are many reasons our root chakra may become imbalanced, but today we are going to focus on financial well-being.

As we ring in a new decade, taking control of your personal finances is a great way to gain confidence and feel more secure, grounded, and in control of your own future. The beginning of the year is a great time to think about financial goals- we have a fresh start and can begin anew!

So let’s jump right in. For starters, financial well-being doesn’t mean being debt-free. Financial well-being is having control over your finances vs. finances controlling you. 

From a young age, we are taught not to talk about money. This social taboo follows us throughout our adult life, and although we live in a capitalist system that revolves entirely around money, we generally avoid talking about finances because it is considered rude. 

To make matters worse, we live in an economy entirely dependent upon our willingness to spend, spend, SPEND!!! We are subject to thousands of ads every day encouraging us to buy more. That if we just buy THIS THING we will be happier. 

And although the average American household carries 38,000 in debt excluding mortgages, this remains a topic that should never be discussed, or even alluded to. So many Americans carry the stress, shame, and guilt associated with financial distress alone.

Like all things we sweep under the table and do not discuss, money can take on a life of its own. 

When we are frozen in fear it can be difficult, even impossible, to know where to begin. We are so overwhelmed we don’t even know how to get started. It is much easier to leave bills left unopened, to forget all our passwords, to avoid looking at our account balance.

But like a monster under the bed, what we perceive as a big, hairy monster is often something we are completely capable of confronting and overcoming.

For me, having control of our financial well-being provides comfort and confidence. I wish this same sense of calm, control, and comfort for you in the coming year! 

Improving Your Financial Position using the lens of the Yamas & Niyamas- Yoga’s Ethical Code

Ahimsa (non-violence)

Step one: As with the yamas & niyamas, we must always come from a place of non-violence before anything else. That means, we must be non-violent with ourselves when we consider our financial position, i.e. stop being so hard on yourself! Did you see where I just wrote that the average household non-mortgage debt is 38,000? You are not alone. The first step is to openly and honestly assess the situation. 

We must also come from a place of non-violence when discussing finances with our partner. It is a good idea to set aside time to sit down specifically to discuss finances over hot cocoa with your partner rather than random violent outbursts or conversations in the family vehicle. For more advice on how to have productive conversations with a partner about finances, read here. This article is full of GREAT ADVICE. 

Santosha (contentment) & Bramacharya (non-excess)

There is an adage that “disappointment is the gap between expectations and reality.” When I feel overcome with feelings of not having enough or disappointment, I try to stop, think, breathe, and focus on the richness of my reality. If we can find that split second to pause between the compulsion to throw another item in the cart, or before clicking “submit order,” we may find that on the other side of that breath we don’t feel that we need that item as much as originally thought. 

The best way to make money is to save money. I have found pride in being able to recognize and stop myself from acting on impulse. 

A good exercise is to jot down everything you feel compelled to buy for two weeks to a month and simply notice how you feel after not purchasing the item. This exercise helped me really get my spending under control. It helps me prioritize my wants. If I still want a new shirt after three months, then it’s probably okay to purchase a new shirt as long as it fits into the budget. 

And after all, we all know that clutter has a tendency to take over our lives! Remember that all that “stuff” used to be money. The less stuff we have, the more money we can save for experiences like vacation or retirement!

Satya (truthfulness)

For years, looking at bank statements felt like entering a haunted house. I forgot passwords, avoided bank statements, and generally steered clear from facing my finances. I was dishonest with myself about my financial well-being. I did not want to face the reality of my situation. I didn’t actually want to know how much I spent on groceries or dining out, not knowing was much easier. It was also much easier to convince myself that I deserved something or that I needed something than to face reality.

Again, when I finally decided to “get real” with my finances I was surprised by the feelings of confidence and calm that followed. By simply looking into my finances, facing them with non-judgement and acceptance, I was able to overcome that fear. By simply taking the power away from my fear surrounding money, my ability to save money improved dramatically. 

Tracking your finances and creating a budget is a great way to get started. I love tracking our finances! Now it’s become a part of my monthly routine and something I enjoy!

Lastly, while it can be overwhelming, it is important to have a plan for retirement. Set aside a day to gain a better understanding of your current retirement situation. Don’t be afraid to seek help from a professional. Sometimes we all need a little help!

Asteya (non-stealing)

Saving money is a way of avoiding stealing from yourself. Sounds strange right? We are programmed to put our short-term needs in front of long-term needs, thanks brain! Some studies show that we actually perceive our future self as a total stranger!  It’s been proven that people who look at an aged photo of themselves do a better job saving for the future. Read more about this here. 

You may even find that saving money, or aggressively paying off debt, will be a cumulative skill that gets easier and stronger with practice. I have certainly found this to be true. Like doing squats, while awful and painful at first, I’ve built muscle memory over time that allows this new behavior to be the routine. I also learned to avoid troublesome places- here’s looking at you Target.

We gotta look out for our future self. (-: Future Amanda has important things to do like wear a fanny pack in retirement and dress like Miss Frizz and grow up to look exactly like my Mom and Grandma. I want to be nice to her. Past Amanda has made some… awesome decisions about money (cough). But that’s okay, 33 year old Amanda is not mad at Past Amanda. 

The general idea is to pay yourself first before allocating money for “fun money” so that you prioritize the needs of your future self before accidentally spending the money elsewhere.

Aparigraha (non-coveting)

We live in an external society. We place value on things like status, home, physical appearance, clothing, travel, and the items we possess. We see photos of our friends on expensive toys and vacations on instagram. Advertisements remind us of all the ways we are not enough- not thin enough, not healthy enough, not pretty enough, not happy enough. If only we just buy X, happiness will follow! 

The next time you feel jealousy creep into your mind, find the pause. Bring awareness to your jealousy. Remind yourself of the richness of your own reality. Literally, love yourself. I’ve found that simply having self-awareness of my own jealousy typically helps me shift those feelings of jealousy to happiness for the other person and satisfaction with my own life. 

Questions for reflection: 

• Does this conversation about financial wellbeing make me feel deeply uncomfortable? If so, get curious about why? Perhaps take some deep breaths (full inhales, full exhales) and create some distance between your reaction to this topic and the topic in general. The first step is getting comfortable simply talking about and acknowledging financial goals and realities. It’s OKAY if you have no idea how much spend on what per month and you are suddenly feeling overwhelmed! That just means this is an excellent opportunity for growth and improvement! 

• Do I currently track my spending? If no, take a few minutes to jot down some ideas to get started. Set aside a time to review your 2019 spending (or even just one month of spending) to get an idea of how much you spend on what. Then strategize a plan for setting a monthly budget as we enter 2020 (choose an app or a strategy). Create a plan for tracking your spending go-forward. Just getting used to the routine of budgeting is a great goal for 2020! It takes a while to gain comfort and confidence, and that is okay!

• Consider your monthly subscriptions and daily/weekly rituals. Are there any habits you don’t need? Could live without?? Some examples include: Netflix, Spotify, and a daily coffee? Consider that even saving $5/week amounts to $260/year. We cancelled Spotify 3 years ago or so and honestly, it’s painful. I miss it often, lol. But I am also totally okay without it! I’ve made it this far haven’t I!

• Consider your behavioral patterns, are there any areas for improvement? Are you overspending on eating out, happy hours, or shopping? Think of some alternatives that you also enjoy. The next time your girlfriends suggest a dinner out or a happy hour, you could suggest a hike, picnic, or a yoga class. One helpful activity is to jot down activities that make you feel the most alive. Try to prioritize those! 

Some money saving strategies you can put in place in the short-term to help ensure long-term success: 

• Aldi. Seriously, Aldi will cut your grocery bill by about 20%, maybe more. If you don’t have access to an Aldi, explore your options to bring down your grocery budget. Don’t forget to bring your own quarter and your own bags. It takes a bit of getting used to, but it is oh-so worth it! 

• Think about retirement. If you already have a retirement savings plan in place, try a specific goal like, “I will increase my retirement savings from 5% to 7% by the end of the year.” Then set up smaller steps to help you tackle the goal. For example, add a percentage to retirement savings any time you get an annual pay increase, or bump up your retirement savings by half a percent every six months. When we make changes gradually and incrementally, we often won’t even notice the change. It also helps to write out your plan: “I am saving X% per year so I can retire by 65.”

  • If your employer offers a match, be sure to contribute in order to take advantage of the match!

• Aggressively tracking spending. You can do this the old fashioned way (pen and paper), through a free budgeting app like Mint, a budgeting app that requires a small fee like You Need a Budget, or using the cash/envelope system recommended by Dave Ramsey. 

  • Bonus: Link a guilty pleasure to budgeting. For example, once a week have a glass of wine or head to your favorite coffee shop to go through your weekly spending transactions on a computer or app. Make it something fun rather than something you resent. Similarly, when you talk to your partner about budget goals, do it in a fun and uplifting way. Get out some ice cream or go for a long walk and discuss how you are doing.

• Remove temptations. As mentioned, when I first got serious about budgeting I avoided places that were problematic for me. I noticed that I had a tendency to overspend at Target, TJMaxx, the mall, and Old Navy, so I took a break from those places. I also unsubscribe from all the ads I receive via email so I don’t feel the need to take advantage of “good deals.” I totally remove myself from the temptation in order to cultivate a behavior accustomed to NOT purchasing things. Now, I love going to local shops and feeling good about intentionally spending money at businesses I love and support. I have control of where/what/when/how I spend my money.

• The 24-hour cart rule. I can put things in the cart but must wait at least 24 hours before hitting purchase. 

• Micro-Investing Apps can be a fun way to make progress. Micro-investing apps like Stash and Acorns make it easy to invest small amounts of money incrementally over time. While these services are not enough to fund your retirement and should not be considered a savings strategy in lieu of retirement savings, they can be a good way to make small steps toward larger savings goals. I’ve had Acorns for just over two years. Acorns “rounds up” from my spending and invests that money. The amount invested is so small I hardly notice it leave the account, $5 here and $10 there. Over time, the money really does add up!

• Trick yourself into saving. Setting up an automatic transfer from your checking account into your savings account on a weekly basis is another great way to ensure you are prioritizing paying yourself first and saving. You can always transfer the money back to checking in a pinch, but automatically transferring the money will help ensure you prioritize saving.

• Get woke to your shopping habits. If you really struggle with shopping, a good strategy is to carry a small notebook and jot down how you feel when you want to buy something and why you want to buy it. Allow the moment to pass. Jot down how you feel afterward. Do you still want the cute pillow, or did you realize you are okay without it? *Also- LIBRARIES. Libraries have free books, movies, games, and even toys you can rent. They often have free programming for adults and kids. They are a great place to save money, especially if you are a book-lover!

• Plan a BIG SAVING month. Similar to a cleanse or fitness challenge, challenge yourself to save as much as possible for one month and see how you do. This can serve as a great way to jump start you and refresh your commitment to things that matter- like that big vacation or a college savings fund.

• Create experiences in place of things. Creating experiences with your family, partner, or friends rather than spending money can be incredibly rewarding. It may take a bit of time to plan an outing to a local park, community ed class, sledding hill,  picnic, hike, free outdoor festival, free concert in the park, etc.. but the outcome will be more valuable than the money spent on alternatives! 

• Be honest with others about your goals. While uncomfortable, most of your friends and family will be very receptive if you let them know you’d rather go to a less expensive restaurant or go to a State Park for a picnic instead of a night on the town. The power of truth is incredible. You may be shocked to find how supportive your friends and families will be if you are open and honest. 

• Find friends who are also working toward financial well-being. About one year ago I started talking about finances with my closest friends. Although initially uncomfortable, we found it helpful to share tips, setbacks, disappointments, and successes. To be clear, we do not discuss how much money we have or don’t have. We do share budgeting apps and tricks that are working well for us. We do openly suggest eating in rather than meeting at a restaurant. We do encourage and support one another. We even text one another when we have a success (paid off a small loan in full today) and when we are frustrated with setbacks (just spent X at the emergency vet).

• Talk to your life partner, if you have one. Remember that you are a team. Together you can make improving your financial position a fun and rewarding challenge rather than a source of frustration, conflict, and stress.

Disclaimer: I am not a financial expert!

Seeking help from a financial advisor is a great step in achieving your financial goals. I simply wanted to share some things I’ve found useful in approaching personal finance and overall well-being. If you decide to hire a financial planner, set aside time to research what will work best for you.