Mindful Money: Using Mindfulness Techniques to Improve Financial Wellness

It’s no secret that money and stress often go hand in hand. Whether it’s worrying about bills, fretting over savings, or grappling with debt, our finances can significantly impact our mental health. However, what if the solution to these financial stressors isn’t just about earning more or spending less? What if it’s also about changing our mindset towards money? That’s where mindfulness comes in.

In the bustling whirlwind of our daily lives, mindfulness can be a serene oasis of calm. But what if we could extend that sense of calm to our finances? As a financial psychologist, I’ve seen how powerful this can be. In this blog post, we’ll explore how mindfulness techniques can be used to improve financial behaviors and alleviate financial stress.

Understanding Mindfulness

Before we delve into how mindfulness can help with financial wellness, it’s crucial to understand what mindfulness is. Mindfulness is the practice of purposely focusing your attention on the present moment—and accepting it without judgment. It’s about being fully engaged in whatever is happening around and within you, free from distraction or judgement.

Mindfulness, in its most basic form, is the state of being conscious and aware. It’s a quality we all possess, though it’s often more readily accessed when we take a moment to really focus on it. The idea is to awaken the inner workings of our mental, emotional, and physical processes.

When we talk about practicing mindfulness, we’re talking about the act of focusing on being intensely aware of what you’re sensing and feeling at every moment, without interpretation or judgment. It’s about paying attention to your 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. This level of attention fosters the development of a deepened awareness and a connection to the self and the surroundings.

Moreover, mindfulness practice means living in the present moment. Often, we let the past or the future dominate our thoughts. We ruminate over what has been or worry about what will be. Mindfulness helps us to stop these patterns of thought and instead simply ‘be’ in the now. It’s about not letting your life pass you by without noticing it. Instead, mindfulness involves actively engaging with your current experience, observing it without judgment.

The beauty of mindfulness is that it’s a practice accessible to everyone, and it doesn’t need any special tools or settings. You can practice mindfulness at any time of the day, whether you’re washing dishes, taking a walk, or in the middle of a challenging business meeting. It’s an incredible tool that can enhance every aspect of your life, from mental health to physical wellbeing, and yes, even to your financial wellness.

Practicing mindfulness can improve your quality of life in numerous ways. It can reduce stress, improve concentration, and promote a greater sense of control over our emotional responses. But how does it relate to our finances?

Mindfulness and Money

When it comes to our finances, we’re often on autopilot. We spend without thinking, ignore our bank balances, and avoid considering the long-term implications of our financial behaviors. This unconscious approach can lead to financial stress and poor financial decisions.

Bringing mindfulness into our financial life involves becoming fully present and engaged in our financial activities. It’s about understanding our money habits, becoming more aware of where our money goes, and making conscious, considered financial decisions.

Bringing mindfulness into our financial life requires a shift from unconscious to conscious financial activities. It means awakening to our habits and patterns around money – the mindless spending, the impulse purchases, the dread or avoidance we might feel when thinking about checking our bank accounts or dealing with bills.

The first step towards financial mindfulness is understanding our money habits. This involves becoming a keen observer of our own behaviour around money. Are we spending out of habit, emotional needs, or are we making considered purchases that align with our goals? Often, we are not even aware of our small daily transactions – the coffee on the way to work, the unplanned snack during lunch, the online shopping ‘window shopping’ that turns into buying items we don’t really need. By becoming aware of these patterns, we can start to change them.

Financial mindfulness also extends to how we feel about our financial situations. It’s about acknowledging our emotions related to money – be it stress, anxiety, joy, or anticipation – without judgement. By becoming aware of these emotions, we can better understand how they influence our financial behaviours and begin to manage them more effectively.

Moreover, financial mindfulness involves active engagement in our financial activities. It’s about not just setting a budget, but truly understanding the expenses and income that make up that budget. It’s about reading through bank statements, tracking expenses, and really understanding where your money goes every month.

Perhaps most importantly, financial mindfulness is about making conscious, considered financial decisions. It involves slowing down, taking a moment to reflect before making a purchase. It’s about asking yourself: Do I really need this? Can I afford this? How does this align with my financial goals? It means making the choice to spend or save based on thoughtful consideration rather than impulse or habit.

By bringing mindfulness into our financial lives, we can improve our relationship with money. We can alleviate financial stress, enhance our financial behaviours, and work more effectively towards our financial goals. This level of engagement and awareness can lead to a sense of financial peace and stability, creating a healthier and more balanced relationship with money.

Mindfulness Techniques for Financial Wellness

So how can we become more financially mindful? Here are some practices you can try:

  • Mindful Spending: Before making a purchase, take a moment to reflect. Why are you buying this? Is it out of necessity, desire, or impulse? How will it impact your finances? This practice can help curb unnecessary spending and promote more intentional buying habits.
  • Financial Meditation: Take a few minutes each day to meditate on your financial goals. Visualize reaching these goals and what that would feel like. This practice can help align your financial behaviors with your long-term goals.
  • Gratitude Journaling: Each day, write down something you are grateful for that you’ve spent money on. This practice can foster a greater appreciation for the things you have and reduce the desire for unnecessary spending.

By integrating these practices into your daily life, you can cultivate a more mindful approach to your finances. In turn, this can lead to better financial decisions, less financial stress, and a healthier relationship with money.

Remember, financial wellness isn’t just about numbers on a page; it’s also about the mindset with which we approach those numbers. Through mindfulness, we can develop a healthier, more balanced perspective on our finances, leading to better financial behaviors and, ultimately, better financial outcomes.


  • Lily Kensington

    Lily Kensington is a financial psychologist, a proud member of the ANZA Psychological Society, and a passionate advocate for financial wellness. A former high school English teacher and psychology graduate, Lily brings a unique perspective to her writing that blends the intricacies of psychology with the world of finance.Over the past decade, Lily has dedicated her life to helping individuals and couples navigate their emotional relationship with money. Her empathetic and intuitive approach, honed through her counselling practice, breaks down complex financial concepts into relatable and practical advice. Lily's writing often reflects her personal journey as a single mother, providing valuable insights and support for fellow single parents navigating the world of personal finance.In addition to her numerous contributions to wellness and personal development blogs, Lily is the author of the book "The Heart of Money: A Psychological Guide to Financial Wellness."In front of the camera or behind the pen, Lily's mission remains the same: to help others achieve financial peace by understanding the psychology of money.

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