Category Archives: Emotional Well-Being

Mindfulness

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“Mindfulness is awareness that arises through paying attention, on purpose, in the present moment, non-judgementally…in the service of self-understanding and wisdom.” Jon Kabat-Zinn, PhD. Professor of Medicine emeritus at the University of Massachusetts Medical School and Founder of the Center for Mindfulness in Medicine, Health Care, and Society

Mindfulness helps you live in the moment.

Mindfulness is the basic human ability to be fully present, aware of where we are and what we’re doing, and not overly reactive or overwhelmed by what’s going on in the environment around us. It means maintaining a moment-by-moment awareness of our thoughts, feelings, bodily sensations, and surrounding environment, through a gentle, nurturing lens.

Mindfulness is a quality that every human being already possesses. To live mindfully is to live in the moment and reawaken oneself to the present, rather than dwelling on the past or anticipating (anxiety) the future, according to Psychology Today.

To be mindful is to observe and label thoughts, feelings, sensations in the body in an objective manner. Mindfulness can therefore be a tool to avoid self-criticism and judgment while identifying and managing difficult emotions.

The goal of mindfulness is to wake up to the inner workings of our mental, emotional, and physical processes and well-being.

Mindfulness helps us put some space between ourselves and our reactions, breaking down our conditioned responses. It is available to us in every moment, whether through meditations and body scans, or mindful moment practices like taking time to pause and breathe.

Mindfulness can be viewed as a type of meditation in which you focus on being intensely aware of what you’re sensing and feeling in the moment, without interpretation or judgment. Practicing mindfulness involves breathing methods, guided imagery, and other practices to relax the body and mind and help reduce stress.

Simple mindfulness exercises can be practiced anywhere and anytime. Here’s how to tune into mindfulness throughout the day, according to mindful.org:

  1. Set aside some time and adjourn to a quiet space.
  2. Observe the present moment as it is. The aim of mindfulness is not quieting the mind, or attempting to achieve a state of eternal calm. The goal is simple: we’re aiming to pay attention to the present moment, without judgment.
  3. Let your judgments roll by. When we notice judgments arise during our practice, we can make a mental note of them, and let them pass.
  4. Return to observing the present moment as it is. Our minds can get carried away in thought. That’s why mindfulness is the practice of returning, again and again, to the present moment.
  5. Be kind to your wandering mind. Don’t judge yourself for whatever thoughts crop up, just practice recognizing when your mind has wandered off, and gently bring it back.

That’s the practice of mindfulness. It’s often been said that it’s very simple, but it’s not necessarily easy. The work is to just keep doing it. Results will accrue overtime.

Benefits of Mindfulness Practice:

When we’re mindful, we reduce stress, enhance performance, gain insight and awareness through observing our own mind, and increase our attention to others’ well-being.

Mindfulness meditation gives us a time in our lives when we can suspend judgment and unleash our natural curiosity about the workings of the mind, approaching our experience with warmth and kindness—to ourselves and others.

Yet no matter how far we drift away, mindfulness is right there to snap us back to where we are and what we’re doing and feeling.

“Mindfulness is a state of active, open attention to the present. This state is described as observing one’s thoughts and feelings without judging them as good or bad.” Psychology Today

Mindfulness can help you become more content, can help maximize your enjoyment of life and daily activities, and can allow a more relaxing and peaceful night’s sleep.

References:

  1. https://www.mindful.org/meditation/mindfulness-getting-started/
  2. https://www.mindfulnesscds.com/pages/about-the-author
  3. https://www.mayoclinic.org/healthy-lifestyle/consumer-health/in-depth/mindfulness-exercises/art-20046356
  4. https://greatergood.berkeley.edu/topic/mindfulness/definition
  5. https://www.psychologytoday.com/us/basics/mindfulness

World Mental Health Day

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“Nothing can dim the light that shines from within” ~ Maya Angelou

Today, Sunday, October 10, 2021, is World Mental Health Day.

World Mental Health Day is an opportunity to increase awareness of mental health issues and break down stigma.

This year’s theme is: “Mental Health Care for All: Let’s Make it a Reality” #WorldMentalHealthDay.

The pandemic has had a major impact on people’s mental health, so it is important to take a step back and focus on maintaining a healthy mind and to focus on mental and emotional well-being.

Key Mental Heath facts:

  • Close to one billion people globally have a mental disorder and anyone, anywhere, can be affected.
  • Young people are struggling most with their mental health. The proportion of youth ages 11-17 who accessed screening was 9 percent higher than the average in 2019. Not only are the number of youth searching for help with their mental health increasing, but throughout the COVID-19 pandemic youth ages 11-17 have been more likely than any other age group to score for moderate to severe symptoms of anxiety and depression.
  • Depression is a leading cause of disability worldwide and is a major contributor to the overall global burden of disease. Globally, it is estimated that 5% of adults suffer from depression.
  • Globally, one in seven 10-19-year-olds experience a mental disorder. Half of all such disorders start by age 14 years but most are undetected and untreated.
  • People with severe mental disorders such as schizophrenia tend to die 10-20 years earlier than the general population.  
  • One in every 100 deaths is by suicide. It is the fourth leading cause of death for young people aged 15-29 years.
  • The COVID-19 pandemic has had a considerable impact on people’s mental health. People screening at risk for mental health conditions are struggling most with loneliness or isolation. From April to September 2020, among people who screened with moderate to severe symptoms of anxiety or depression, 70 percent reported that one of the top three things contributing to their mental health concerns was loneliness or isolation.

Today is an excellent opportunity to discuss mental health in general, how to eliminate the stigma associated with it, and the necessity of speaking out when dealing with a mental health problem.

Simple ways to focus on your mental health and emotional well-being

Taking care of yourself emotionally and mentally should start with your first thoughts and actions of the day. Instead of checking social media, draw in a few deep breaths, and think of three things you’re grateful and thankful for. These can be significant, like your spouse, job or health, or modest, like the weather, the view from your window, or even the luxury of those first breaths.

There are a number of actions or activities you can try if there are times when you’re not feeling at your best mentally or emotionally:

  • Take part in a physical activity – this can include things like walking, dancing, cycling and even a game of hide and seek or tag!
  • Spend time with supportive people – these could be friends, family members or people at school or church – even if you aren’t able to meet in person, virtual meetings can be just as beneficial.
  • Make sure you’re getting enough sleep.
  • Spend time outdoors.
  • Plan something to look forward to like reading a new book, baking something tasty, or taking part in a sport or activity you love.
  • Consume a healthy and balanced diet, which includes treating yourself occasionally, and eliminating alcohol and drugs.
  • Help others as giving back can help you feel better.

Source: Mental Health America

References:

  1. https://www.who.int/health-topics/mental-health#tab=tab_1
  2. https://www.mhanational.org/issues/state-mental-health-america

Financial Paradigm

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“We think we see the world as it is, when in fact we see the world as we are.” Stephen R. Covey

Paradigms [pronounced para-dimes], like mindset, represent your views of the world, your explanations for what you observe in and think about the world around you. 

You think that you see the world as it is. In fact, you really see the world as you are, Stephen Covey wrote in his seminal book, The 7 Habits of Highly Effective People. “We project onto the outside world, our environment, the people we associate with, including how we see ourselves. We project out of our own conditioning experiences, our own background, a certain representation, a certain model, a certain set of expectations, a certain assumption on that reality out there. We think that’s the way it is.”

As a metaphor, compare your paradigms to the lenses in your glasses.  What you see isn’t a completely accurate reflection of reality, it is shaped by your beliefs, thoughts, feelings, attitudes, behaviors and perceptions. Yet, “We are not our feelings. We are not our moods. We are not even our thoughts… self-awareness enables us to stand apart and examine even the way we ‘see’ ourselves,” according to Stephen R. Covey.

Your paradigms shape how you interpret the world, and your interpretation governs how you behave; thus, changing the lens we use in deciding how to change your behavior. Each person’s experiences and biology creates different paradigms, so two people with different paradigms can look at the same facts, interpret them completely differently, and both be right.

Covey referred to paradigm as a map; it is a map of your perceptions, your frame of reference, your worldview, your value-system, your autobiography that you’re projecting upon the outside world.

Paradigms are natural and inevitable, and they are useful to you in many ways.  However, sometimes your paradigms can become so far removed from reality that they become dysfunctional. 

A “paradigm shift” occurs when your paradigms change, allowing you to see the world in a new and different perspective.  Sometimes this can happen suddenly, and sometimes very gradually. 

“Paradigms are powerful because they create the lens through which we see the world. If you want small changes in your life, work on your attitude. But if you want big changes, work on your paradigm.” Stephen R. Covey

Any true happiness or fulfillment or success will have to come from the inside-out, and be based upon a sound character, Covey repeatedly stated. His message was a simple one: “for true success and meaning in life, we must be principle-centered in all areas [purpose, health, emotional well-being and financial] of life”. A teacher at heart, he often taught, “There are three constants in life: change, choice and principles.”

“The significant problems we face cannot be solved at the same level of thinking we were at when we created them.” Albert Einstein

Most behavioral financial experts focus on an investor’s behavior and on emotions. Without a doubt, both of those concepts are very important regarding investing, but far more fundamental than either behavior or emotion, is a positive paradigm and a financial mindset. 

When you understand what’s guiding your emotions, thoughts and behavior, you can make a conscious effort to refrain from acting out of those paradigms and actually choose how you respond to a person or situation. 

Dr. Stephen R. Covey often proclaimed that, “the quickest way to change your paradigm is to change your role.” Become a successful investor. A parent. A leader. A business owner. It will alter your perspective overnight. You’ll see everything from a different point of view and mindset. 

Be Grateful. Be Kind. Be Generous. Be at Peace.

And, Have a Positive Financial Mindset: When People are Genuinely Happy at the Financial Successes of Others, the Wealth Pie Gets Larger.

References:

  1. https://resources.franklincovey.com/blog/paradigms
  2. http://people.tamu.edu/~v-buenger/658/Steven_Covey.html
  3. https://resources.franklincovey.com/mkt-7hv1/paradigms-src
  4. https://www.shortform.com/blog/change-your-paradigm-change-your-behavior-7-habits/

The Psychology Behind Your Worst Investment Decisions | Kiplinger Magazine

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“When it comes to investing, we have met the enemy, and it’s us.” Kiplinger Magazine

Excited by profit and terrified of loss, we let our emotions and minds trick us into making terrible investing decisions, writes Katherine Reynolds Lewis of Kiplinger Magazine.

Most individual investors allow their emotions to dictate their investment decisions. Effectively, there are two types of emotional reactions the average investor can experience:

Fear of Missing Out (FOMO). These investors will chase stocks that appear to be doing well, for fear of missing out on making money. This leads to speculation without regard for the underlying investment strategy. Investors can’t afford to get caught up in the “next big craze,” or they might be left holding valueless stocks when the craze subsides.

  • Fear of Missing Out (FOMO) can lead to speculative decision-making in emerging areas that are not yet established.
  • Fear of Losing Everything (FOLE) is a more powerful emotion that comes from the fear that they will lose all of their investment.

Acording to a 2021 Dalbar study of investor behavior, Dalbar found that individual fund investors consistently underperformed the market over the 20 years ending Dec. 31, 2020, generating a 5.96% average annualized return compared with 7.43% for the S&P 500 and 8.29% for the Global Equity Index 100.

“As humans, we’re wired to act opposite to our interests,” says Sunit Bhalla, a certified financial planner in Fort Collins, Colo. “We should be selling high and buying low, but our mind is telling us to buy when things are high and sell when they’re going down. It’s the classic fear-versus- greed fight we have in our brains.”

Avoiding these seven “emotional and behaviorial” investing traps will allow you to make rational investments.

  1. Fear of Missing Out – Like sheep, investors often take their cues from other investors and sometimes follow one another right over a market cliff. This herd mentality stems from a fear of missing out.  The remedy: By the time you invest in whatever is trending, it’s too late because professional investors trade the instant that news breaks. Individual investors should buy and sell based on the fundamentals of an investment, not the hype.
  2. Overconfidence – Some investors tend to overestimate their abilities. They believe they know better than everyone else about what the market is going to do next, says Aradhana Kejriwal, chartered financial analyst and founder of Practical Investment Consulting in Atlanta. “We want to believe we know the future. Our brains crave certainty.” The remedy: To combat overconfidence, build in a delay before you buy or sell an investment so that the decision is made rationally.
  3. Living in an Echo Chamber – Overconfidence sometimes goes hand in hand with confirmation bias, which is the tendency to seek out only information that confirms our beliefs. If we think an asset holds promise for riches, news about people making money sticks in our minds more than negative news, which we tend to dismiss. The remedy: To counteract this bias, actively seek out information that contradicts your thesis.
  4. Loss Aversion – Our brains feel pain more strongly than they experience pleasure. As a result, we tend to act more irrationally to avoid losses than we do to pursue gains. The remedy: Stock market losses, however, are inevitable.If seeing the losses pile up in a down market is too hard for you, simply don’t look. Have faith in your long-term investing strategy, and check your portfolio less often.
  5. No Patience for Sitting Idly By – As humans, we’re wired for action. That compulsion to act is known as action bias, and it’s one reason individual investors can’t outperform the market — we tend to trade too often. Doing so not only incurs trading fees and commissions, which eat into returns, but more often than not, we realize losses and miss out on potential gains. The remedy: Investors need to play the long game. Resist trading just for the sake of making a decision, and just buy and hold instead.
  6. Gambler’s Fallacy – “This is the tendency to overweight the probability of an event because it hasn’t recently occurred,” says Vicki Bogan, associate professor at Cornell University. Over time, the probability of equities having an up year or a down year is about the same, regardless of the previous year’s performance. That’s true for individual stocks as well. The remedy: When stocks go down, don’t just assume they’ll come back up. “You should be doing some analysis to see what’s going on,” Bogan says.
  7. Recency Bias – Past performance is no guarantee of future results. Yet, our minds tell us something different. “Most people think what has happened recently will continue to happen,” Bhalla says. It’s why investors will plow more money into a soaring stock market, when in fact they should be selling at least some of those appreciated shares. And if markets plummet, our brains tell us to run for the exits instead of buying when share prices are down.The remedy: You can combat this impulse by creating a solid, balanced portfolio and rebalancing it every six  months. That way, you sell the assets that have climbed and buy the ones that have fallen. “It forces us to act opposite to what our minds are telling us,” he says.

It is wise to always keep in mind that the market is volatile as a result of investors’ emotions and behaviors, and thus does not move logically.

References:

  1. https://www.kiplinger.com/investing/603153/the-psychology-behind-your-worst-investment-decisions

by: Katherine Reynolds Lewis – July 22, 2021

The Laws of Wealth by Daniel Crosby

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“Get rid of the excuses and get invested.” Fidelity Investment

Daniel Crosby, author of The Laws of Wealth, presents 10 rules of behavioral self-management.

Rule #1 – You Control What Matters Most. “The behavior gap measures the loss that the average investor incurs as a result of emotional responses to market conditions.” As an example, the author notes that the best performing mutual fund during the period 2000-2010 was CGM Focus, with an 18.2% annualized return; however the average investor in the fund had a negative return! The reason is that they tended to buy when the fund was soaring and sell in a panic when the price dipped. More on volatility later…

Rule #2 — You Cannot Do This Alone. “Vanguard estimated that the value added by working with a competent financial advisor is roughly 3% per year… The benefits of working with an advisor will be ‘lumpy’ and most concentrated during times of profound fear and greed… The best use of a financial advisor is as a behavioral coach rather than an asset manager.” Make sure your advisor is a fiduciary. “A fiduciary has a legal requirement to place his clients’ interest ahead of his own.”

Rule #3 – Trouble Is Opportunity. “The market feels most scary when it is actually most safe… Corrections and bear markets are a common part of any investment lifetime, they represent long-term buying opportunity and a systematic process is required to take advantage of them.” The author quotes Ben Carlson: “Markets don’t usually perform the best when they go from good to great. They actually show the best performance when things go from terrible to not-quite-so-terrible as before.”

To do this is by keeping some assets in cash a buy list of stocks that are great qualitly, have a strong balance sheet and a strong brand, but are expensive.

Rule #4 – If You’re Excited, It’s a Bad Idea. “Emotions are the enemy of good investment decisions.”

Rule #5 – You Are Not Special. “A belief in personal exceptionality causes us to ignore potential danger, take excessively concentrated stock positions and stray from areas of personal competence… An admission of our own mediocrity is what is required for investment excellence… This tendency to own success and outsource failure [known as fundamental attribution error] leads us to view all investment successes as personal skill, thereby robbing us of opportunities for learning as well as any sense of history. When your stocks go up, you credit your personal genius. When your stocks go down, you fault externalities. Meanwhile, you learn nothing.”

Rule #6 – Your Life Is the Best Benchmark. “As a human race, we are generally more interested in being better than other people than we are in doing well ourselves.” However, “measuring performance against personal needs rather than an index has been shown to keep us invested during periods of market volatility, enhance savings behavior and help us maintain a long-term focus.”

Rule #7 – Forecasting Is For Weathermen. “The research is unequivocal—forecasts don’t work. As a corollary, neither does investing based on these forecasts…. Scrupulously avoid conjecture about the future, rely on systems rather than biased human judgment and be diversified enough to show appropriate humility.”

Rule #8 – Excess Is Never Permanent. “We expect that if a business is well-run and profitable today this excellence will persist.” The author quotes James O’Shaughnessy: “‘The most ironclad rule I have been able to find studying masses of data on the stock market, both in the United States and developed foreign markets, is the idea of reversion to the mean.’ Contrary to the popular idea of bear markets being risky and bull markets being risk-free, the behavioral investor must concede that risk is actually created in periods of market euphoria and actualized in down markets.”

Rule #9 – Diversification Means Always Having to Say You’re Sorry. “You can take it to the bank that some of your assets will underperform every single year… The simple fact is that no one knows which asset classes will do well at any given time and diversification is the only logical response to such uncertainty… Broad diversification and rebalancing have been shown to add half a percentage point of performance per year, a number that can seem small until you realize how it is compounded over an investment lifetime.”

Rule #10 – Risk Is Not a Squiggly Line. “Wall Street is stuck in a faulty, short-sighted paradigm that views risk as a mathematical reduction [of volatility]… a flaw that can be profitably exploited by the long-term, behavioral investor who understands the real definition of risk… Volatility is the norm, not the exception, and it should be planned for and diversified against, but never run from… Let me say emphatically, there is no greater risk than overpaying for a stock, regardless of its larger desirability as a brand.”

One of the most interesting concepts in the book is that investing in an index is not as passive as we might assume. Crosby quotes Rob Arnott: “‘The process is subjective—not entirely rules based and certainly not formulaic. There are many who argue that the S&P 500 isn’t an index at all: It’s an actively managed portfolio selected by a committee—whose very membership is a closely guarded secret!—and has shown a stark growth bias throughout its recent history of additions and deletions… The capitalization-weighted portfolio overweights the overvalued stocks and underweights the undervalued stocks…’ In a very real sense, index investing locks in the exact opposite of what we ought to be doing and causes us to buy high and sell low… Buying a capitalization weighted index like the S&P 500 means that you would have held nearly 50% tech stocks in 2000 and nearly 40% financials in 2008.”

“Once we realize that passive indexes are not mined from the Earth, but rather assembled arbitrarily by committee, the most pertinent question is not if you are actively investing (you are) but how best to actively invest.”

“Behavioral risk is the potential for your actions to increase the probability of permanent loss of capital… Behavioral risk is a failure of self… Our own behavior poses at least as great a threat as business or market risks… We must design a process that is resistant to emotion, ego, bad information, misplaced attention and our natural tendency to be loss averse.”

Crosby presents rule-based behavioral investment, or RBI for short. “The myriad behavior traps to which we can fall prey can largely be mitigated through the simple but elegant process that is RBI. The process is easily remembered by the following four Cs:

  1. Consistency – frees us from the pull of ego, emotion and loss aversion, while focusing our efforts on uniform execution.
  2. Clarity – we prioritize evidence-based factors and are not pulled down the seductive path of worrying about the frightening but unlikely or the exciting but useless.
  3. Courageousness – we automate the process of contrarianism: doing what the brain knows best but the heart and stomach have trouble accomplishing.
  4. Conviction – helps us walk the line between hubris and fear by creating portfolios that are diverse enough to be humble and focused enough to offer a shot at long-term outperformance.”

“Rule-based investing is about making simple, systematic tweaks to your investment portfolio to try and get an extra percentage point or two that has a dramatic positive impact on managing risk and compounding your wealth over time… We know that what works are strategies that are diversified, low fee, low turnover and account for behavioral biases.”

“Just like a casino, you will stick to your discipline in all weather, realizing that if you tilt probability in your favor ever so slightly, you will be greatly rewarded in the end… Becoming a successful behavioral investor looks a great deal like being The House instead of The Drunken Vacationer.”

The author quotes Jason Zweig: “You will do a great disservice to yourselves… if you view behavioral finance mainly as a window onto the world. In truth, it is also a mirror that you must hold up to yourselves.”

Crosby, Daniel. The Laws of Wealth: Psychology and the Secret to Investing Success. Hampshire, Great Britain: Harriman House, 2016.

Emotional decisions derail your finances

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Many investors expressed unbridled exuberance at the beginning of calendar year 2020 as equity markets reached new all-time high valuation. The fact that stocks also go down, or fluctuate in value, was not on the minds of most investors. This fact led many investors to take on more risk than they could handle emotionally and financially.

When the market went into a free fall in March due to pandemic related health concerns and the shutdown of the economy, investors understandably panic and wondered if they should move to cash, shift around their allocation or even get out of stocks altogether.  Unfortunately, many nervous investors made decision based on emotion and sold assets in a panic.

A few weeks after the drop, the market began to recover its massive losses. Investors not wanting to miss out on the market surge, began rushing back into the market with urgency and the fear of missing out on the recoverly. This time they asked why they didn’t own more stocks. This Jekyll and Hyde change in attitude may seem illogical in retrospect. However, when living in the moment, it’s easy to get caught up in the emotions of the day.

Implementing strategies to manage emotions and the actions you take is imperative.

References:

  1. https://www.kiplinger.com/investing/601852/8-investing-lessons-learned-in-2020

Health, Financial and Emotional Well-Being

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“We don’t see the world as it is, we see it as we are.” Anaïs Nin

Recent survey shows Americans are the unhappiest they have been in 50 years. Pandemic and health concerns, social unrest and economic distress have left Americans feeling tired, and living with a constant state of “brain fog” which are just a few symptoms of stress, anxiety, lack of sleep, and poor overall mental health.

People will exercise to help their bodies become fit, but when it comes to mental health, most people do nothing. Let’s be frank, the coronavirus has changed many Americans emotional, financial, and physical health circumstances dramatically and quickly. It’s important to take a holistic approach to your health, financial and emotional well-being. We know that planning for your future is about so much more than your finances – you and your family’s physical and emotional wellness are also a priority.

Time and time again, research has shown that “money cannot buy happiness” and that not only do you need a finite amount of money to be happy, but that prioritizing things like expressing gratitude, friendships, hobbies and family may actually lead to long-term well-being.

Keep physical, emotional and financial health a priority and in the center of your thoughts and daily life.

Overall emotional, physical and financial well-being are what your attempting to holistically achieve. It helps you feel more secure and less stressed in all areas. Sometimes the best thing you can do for your health – and your long-term financial security – is to tune it out the constant negative news. Here are some ways to tune out negativity during uncertain times.

  1. Put down the smart phone and turn off the news. Allow yourself just one hour of news time each day, preferably in the middle of the day. This ensures you don’t start or end your day anxious. It’s important to stay informed, but once a day should suffice.
  2. Stay positive and focus on an attitude of gratitude. List the top five (or more) things you’re grateful for each day. Your list may be the same from day to day or it could change based on the past day’s experience. It could be as simple as being thankful for the roof over your head or a smile from a stranger as you walk your neighborhood.
  3. Get physical and eat healthy. You’ve probably heard it before, and that’s because it’s true – physical activity is just as healthy for your mind as it is for your body. This doesn’t mean you have to participate in high intensity interval training. Start small. Simply going for a walk or doing basic stretches can help keep your mind and body at their best. Additionally, eliminate process foods, refined sugars and saturated fats from your diet. Eat more plant based foods and whole grains.
  4. Connect with family and friends. Having a strong support system is important during good times, but even more so during challenging ones. Reach out to someone you haven’t talked to in a while to see how they’re doing. Send a text or card or give them a call. If your family is spread out across the country, use digital apps to connect and play games.
  5. Stick to a schedule. When you’re stressed, it often takes a toll on your sleep schedule. Keeping a consistent routine can help. Get up and go to bed at the same times each day, even on weekends. Know your stress triggers and pay attention when you notice them flaring up.

While it’s important to be aware of what’s going on in the world, focusing on the bad news won’t help your financial strategy, your emotional well-being or your physical health. Remember, you’re in it for the long term.

During the current coronavirus pandemic, instead of ‘social distancing,’ our focus should be on ‘physical distancing’ and ‘social connection.'”

Maintain mental health and emotional well-being

Focus on the now. Worrying about the past or the future isn’t productive. When you start chastising yourself for past mistakes, or seeing disaster around every corner, you’re only creating more stress and anxiety in your life.

It’s important to stop and to take a breath and ask yourself what you can do right now to succeed. Find something to distract you from destructive thoughts and reset your attitude.

Achieving a healthy frame of mind can seem more challenging than in years past.

Having a daily moment of intentional quiet can go a long way toward a better outlook.

Try this five-minute meditation routine that combines both yoga and balance to steady the mind, utilize the breath to become more mindful, and reduce stress.

Mindfulness meditation does, in fact, decreases anxiety and improves self-esteem, studies have shown.

As you move through Mindfulness meditation, focus on deep breathing. Inhale and exhale through the nose, and start by filling up your lungs with air. Then feel the air rise up into the chest. As you exhale, empty the chest first and then feel the stomach deflate like a balloon. This slow, conscious and specific breath pattern aids in focusing the mind to the present moment.

Finally, if your mind wanders easily during this sequence, you can focus on a one-word mantra to recite silently to yourself. Choosing a word like “serenity” or “peace” or “confidence” and syncing your movement with your breath can help transport you to a different world that quiets distractions from the past and future.

References:

  1. https://www.synchronybank.com/blog/millie/money-and-happiness/https://www.synchronybank.com/blog/millie/money-and-happiness/
  2. https://apple.news/Am_LnLhs1Q22oltXhOLcRLg
  1. https://www.edwardjones.com/market-news-guidance/client-perspective/your-health-your-finances.html
  2. https://www.edwardjones.com/market-news-guidance/guidance/tune-out-stressful-times.html

Value Time Over Money

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“It’s essential that you place a high value on your time.”

Happiness is more than simply a positive mood, according to Psychology Today. It is a state of well-being that encompasses living a good life, one with a sense of meaning, purpose and deep contentment. Happiness encompasses feelings of satisfaction and c. involves creating strong relationships and helping others. It requires also uncomfortable or painful experiences—to continue to learn, grow, and evolve.

Coincidentally, emotional well-being refers to the emotional quality of an individual’s everyday experience—the frequency and intensity of experiences of joy, stress, sadness, anger, and affection that make one’s life pleasant or unpleasant.

Time and time again, research has shown that not only do you need a finite amount of money to be happy, but that prioritizing things like time, relationships, hobbies and family may actually lead to long-term well-being. Research shows that the finite sweet spot for yearly income is between $60,000 and $95,000 a year, not a high six-figure salary. Earnings above $95,000 do not necessarily equate to increased well-being.

A study published by Science Advances in 2019 found that recent grads who valued time over money, in which they took jobs that were less demanding but also paid less money, were generally happier.

People who prioritize money are generally driven by extrinsic motivations like shopping, which bring little personal satisfaction, researchers concluded.

On the other hand, people who prioritize time are typically intrinsically motivated, focusing on hobbies, relationships and cultivating gratitude instead. Intrinsic motivations build autonomy and purpose, which lead to long-term happiness, the researchers concluded.

Although wealth offers the potential for people to spend their time in happier ways, such as by living in a more expensive apartment closer to the office, survey data suggest that wealthier individuals often spend more of their time engaging in activities that are less enjoyable, such as commuting. Research suggests that rising incomes are linked to an increased sense of time scarcity.

Takeaway

Happy people live with purpose and value time over money. They find joy in lasting relationships, working toward their goals, and living according to their values. They tend not to garner happiness from material goods or luxury vacations. They’re fine with the simple pleasures of life and cultivating gratitude.

People who cultivate gratitude tend to better appreciate and enjoy life, as gratitude creates satisfaction that is intrinsic. To practice gratitude, reflect on what you’re grateful for each morning to shape the rest of the day, keep a gratitude journal, and reframe negative experiences by finding something within them for which you’re grateful, and can learn and grow.

References:

  1. https://www.psychologytoday.com/us/basics/happiness
  2. https://www.pnas.org/content/107/38/16489.full
  3. https://www.synchronybank.com/blog/millie/money-and-happiness/
  4. https://advances.sciencemag.org/content/5/9/eaax2615.full
  5. https://www.inc.com/jessica-stillman/5-things-science-learned-about-happiness-last-year.html
  6. https://www.psychologytoday.com/us/basics/happiness/how-find-happiness

6 Habits to Build Wealth

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“If your goal is to become financially secure, you’ll likely attain it…. But if your motive is to make money to spend money on the good life,… you’re never gonna make it.” Thomas Stanley and William Danko

Your financial independence is far more important than showing off your wealth, according to authors of Millionaire Next Door, Thomas Stanley and William Danko. They assert that millionaires frequently remind themselves that those who spend all their income on high-priced luxury items often don’t have much accumulated wealth to their names and tend to live on the paycheck to paycheck treadmill.

Yet, many paths exist to building wealth which have little to do with wages and income. Wealthy people tend to practice daily habits that are designed to protect and grow their assets and help keep their body and mind in balance, according to financial experts who’ve studied subject.

They have found over and over again that you don’t have to be a high-income one-percenter to be wealthy. Many wealthy individuals never made more than $60,000 to $70,000 per year, but did a very good job of managing their expenses, cash flow and spending behavior. “Many people who live in expensive homes and drive luxury cars do not actually have much wealth”, according to Thomas and Danko. “Then, we discovered something even odder: Many people who have a great deal of wealth do not even live in upscale neighborhoods.”

Wealthy individuals generated several million dollars of net worth, simply because they started financial planning early in life, they saved as aggressively as they could afford to, and they invested that money in assets and stayed invested over the long. In short, “one of the reasons that millionaires are economically successful is that they think differently.”

Live Below Your Means and Practice Gratitude

“Wealth is more often the result of a lifestyle of hard work, perseverance, planning, and, most of all, self-discipline.” Thomas Stanley and William Danko

Related to not showing off your wealth, authors Stanley and Danko found that the vast majority of millionaires didn’t spend a lot of money and were grateful for things they did own and the lifestyle they lived. In fact, they spent well below their means given their fortunes. In addition, the majority of the wealthy reported that they created and followed a personal budget, and created and maintain a gratitude journal. In other words, they respected their wealth, kept their spending on a tight leash and practice gratitude daily.

There are a few key habits of building wealth:

  1. Remember to pay yourself first. Basically, paying yourself first is about having your financial and budgeting ducks in a row. One key to building wealth is creating a budget and sticking to it. Wealthy people know how to hold the line on discretionary spending items that can help them increase the “invest” portion of their monthly budget.
  2. Look ahead at your goals. Wealthy people typically set concrete goals, both personal and financial, and have a long-term focus that looks years, if not decades, down the road. The more specific the goals and the longer term the goals are, the better. The wealthy understand that it begins with setting personal goals—what you want to get out of life and how you might prioritize your list. And once you have an idea what you want to accomplish personally, you can plot a financial road map to help steer you there. In other words, the path to wealth involves starting early, and focusing on the long term.
  3. Do your homework; keep your cool. Markets go up, and markets go down—often suddenly and for no apparent reason. Define your comfort level with risk, keep your emotions in check, and recognize what you can and can’t control. According to Siuty, there’s no “secret sauce,” except that, to build wealth, it helps to “stay disciplined, be methodical, and not let emotions get the better of you.”
  4. Lead a non-lavish lifestyle. Despite the popular characterization of rich people throwing money wantonly around in movies and TV, in reality, wealthier folks actually tend to look for value in their purchases. They generally understand the difference between price and value. In other words, they’re not afraid to open the pocketbook, but they tend to expect value in return.
  5. Always expand your education. Education is one of the keys to success, and reading is one of the most efficient ways to learn. According to Thomas Corley, author of Rich Habits: 67% of the rich watch TV for one hour or less a day. Only 6% of the wealthy watch reality shows, he wrote, while 78% of the poor do. And, 86% of the wealthy “love to read,” with most of them reading for self-improvement.
  6. Get up early, eat healthy, exercise. The wisdom that “time is money” goes all the way back to Benjamin Franklin, so it’s no surprise that the wealthy tend to wake early and make the most of their time. The other aphorism the wealthy take to heart is “health is wealth.” According to Corley, 57% of wealthy people count calories every day, while 70% eat fewer than 300 calories of junk food per day. Some 76% do aerobic exercise at least four days per week.
  7. Practice Gratitude. Gratitude makes people more optimistic and positive. It improves relationships, which is strongly correlated with financial success, as well as health, happiness and longevity. And, grateful people are less likely to purchase things they don’t need and that can help them save more! The bottom line is this: It doesn’t matter how much you have if you don’t appreciate it! Without gratitude, you’ll never feel successful and wealthy, no matter your net worth. So regardless of your level of financial success, practicing gratitude is essential.

Seeking a life of balance in mind and body, creating measurable goals, and prioritizing saving and investing, can help put you on the right path, and help keep you from straying from that path. And the earlier you start, the better.

References ‘

  1. https://tickertape.tdameritrade.com/personal-finance/behavior-wealthy-habits-rich-16001
  2. https://brandongaille.com/the-millionaire-next-door-summary/
  3. https://www.fool.com/investing/best-warren-buffett-quotes.aspx
  4. https://partners4prosperity.com/thank-and-grow-rich-gratitude-and-wealth/

Mindfulness and Emotional Well-being

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“Cultivate the habit of being grateful for every good thing that comes to you, and to give thanks continuously.” Ralph Waldo Emerson

Mindfulness means maintaining a moment-by-moment awareness of your thoughts, feelings, bodily sensations, and surrounding environment, through a neutral, nonjudgmental filter.

Mindfulness also involves acceptance, meaning that you pay attention to your current thoughts and feelings without judging them—without believing, for instance, that there’s a “right” or “wrong” way to think or feel in a given moment.

When you practice mindfulness, your thoughts tune into what you’re sensing in the present moment rather than rehashing your past or imagining your future.

To be mindful is to be fully conscious or aware of your surroundings. It’s important to not think or worry about the future. Instead, the goal is to physically, emotionally, mentally, and cognitively stay within the present moment.


 
“Mindfulness…is the presence of heart.” Chinese Translation

To discover mindfulness is to discover what happens when you deliberately take time to detect the reality and your perception of the present moment no matter what it’s like—and gradually cultivate ‘an open heart’ to what we notice and sense, asserts teacher Adam Moskowitz. 

Mindfulness Chinese symbol

A Chinese translation for mindfulness is presence of heart. At its core mindfulness is a heart-centered practice. It is a realization of your fundamental wholeness, according to Moskowitz. It is a discovery of your innate care for yourself and one another. It is recognition of the truth of your interdependence—how we rely on one another and how the world relies on us.

Studies have shown that practicing mindfulness, even for just a few weeks, can bring a variety of physical, psychological, and social benefits. Essentially, mindfulness is good for your health, wealth and emotional well-being.

Mindfulness can be cultivated and practiced daily, Jon Kabat-Zinn emphasizes in his Greater Good video. “It’s about living your life as if it really mattered, moment by moment by moment by moment.”

It is essential for our wellbeing to take a few minutes each day to cultivate mindfulness and achieve a positive mind-body balance. Here are a few key components of practicing mindfulness that Kabat-Zinn and others identify:

  • Pay close attention to your breathing, especially when you’re feeling intense emotions.
  • Notice—really notice—what you’re sensing in a given moment, the sights, sounds, and smells that ordinarily slip by without reaching your conscious awareness.
  • Recognize that your thoughts and emotions are fleeting and do not define you, an insight that can free you from negative thought patterns.
  • Tune into your body’s physical sensations, from the water hitting your skin in the shower to the way your body rests in your office chair.

The cultivation of moment-by-moment awareness of our surrounding environment is a practice that helps us better cope with the difficult thoughts and feelings that cause us stress and anxiety in everyday life.

With regular practice of mindfulness exercises, you can harness the ability to root the mind in the present moment and deal with life’s challenges in a clear-minded, calm, assertive way. It’s about the challenges and the rewards of being less self-centered and more self aware.

References:

  1. https://greatergood.berkeley.edu/topic/mindfulness/definition
  2. https://www.withinmeditation.com/blog/2020/10/2/presence-of-heart-what-mindfulness-is-and-isnt
  3. https://greatergood.berkeley.edu/topic/mindfulness/definition#why-practice-mindfulness
  4. https://www.pocketmindfulness.com/6-mindfulness-exercises-you-can-try-today/