What hooked me on mindful money management?

One word: Freedom, expressed in three different ways.

First, we saw the power of compound interest in investing. When we first set off our journey to become more intentional with our finances, we decided we would pay off our debt as quickly as possible. We were averaging $4,000 a month of debt payments. Once we paid off all our debt, we had about $4,000 a month of disposable income. I wondered: What would happen if we invested that whole $4,000 every month? In 10 years* we would have over $700,000. In 20 years it would be over $2 million. In 30 years? Nearly $5.5 million dollars. This felt liberating because we knew we could retire easily within 20 years, and have a pretty comfortable retirement in 30.

After paying off all our debt and seeing how much money we would have left over every month as disposable income, we realized we actually didn’t need much income to live. Before we learned about money management, we spent all our money, and did so pretty mindlessly. But, if we were intentional about how we spent, we could live on less which translated to more freedom. Freedom if one of us wanted to quit working, freedom if we wanted to change careers, freedom if we experienced a job loss or big expense. We had created financial security that afforded us options. Which, by the way, we have since exercised for the better.

Finally, getting clear on our values through mindful money management has given us the most impactful form of freedom—it has freed us from influence. Taking the time to review and analyze our history with money and taking the steps to use it more responsibly has led to a heightened awareness of our values. We know who we are so much more clearly and can live in a way that reflects that—spending in a way that serves our future. We no longer feel the need to have the next great thing, the biggest home, the newest car. We aren’t (so) susceptible to marketing. We are able to make thoughtful, intentional decisions for us. For me, this has been more than about money; this has become deep inner work.

When I sum up how mindful money management has impacted my life, I think this: Life’s work is to figure out what fulfils you, what brings you joy, what inspires you – when you are free from money fear, you discover more. For me, this is the fuel for a lifetime of practicing mindfulness with money.

What motivates you?

If you need a little help putting a money management system in place, see if working together might be a good fit.

*These figures assume an 8% rate of return. This of course, is not investing advice or a promise of any performance.