Imagine feeling so confident in your financial plan and life decisions that you find yourself with time to enjoy life and the money to pursue your passions. It’s a freeing combination and one that unlocks the greatest lifestyle shift of all: mind freedom.
What do we mean by mind freedom? It’s an abstract concept, but ultimately, mind freedom describes an existence where you live a life free from worry about your finances.
Now, obviously, hardships in life are inevitable. But mind freedom minimizes unexpected blows and also allows you to operate at a worry-free baseline. Mind freedom is a way of being and thinking that allows you to enjoy the life you’ve worked so hard to build — and with confidence to boot!
We’ve explored how to achieve time freedom and the many strategies that can help you accomplish money freedom, but in this article we’re putting it all together and discussing the final of the three freedoms of prosperity: Mind Freedom.
Aspiring To Achieve Mind Freedom? It’s All About Mindset
Whether we realize it or not, we all have preconceived ideas about money:
Money is meant to be spent.
Money is meant to be saved and invested.
There will never be enough, so I might as well enjoy what I can — even if it means foregoing long-term gains.
It always ends up working out, so I don’t need to worry about whether or not I can afford this big purchase.
Money should be used to purchase X, not Y.
Money should be used to purchase Y, not X.
Money is good.
Money is bad.
Much of our financial lens is a result of our life experiences: How we were raised, the cultures we identify with, and broader societal values can all impact how we think and feel about money.
Reflecting on our preconceived notions and ideas about money and consciously working to correct ways of thinking that are getting in the way of our financial freedom is an essential step in achieving mind freedom. The idea is to move from a place of reactivity to a place of intention.
Why? Because when we know our financial intentions we make wiser decisions that align with our values. When we keep our intentions front and center, we can bypass some of the money mindsets that create barriers to achieving a prosperous life.
The Path to Mind Freedom
But what exactly does mind freedom look like? Here are four ways to manifest mind freedom: .
1. Banish fear of stock market dips
Sometimes our emotions can cloud our better judgment. This phenomenon is often at play when the stock market dips. Watching those numbers in your investment portfolio take a nosedive is not for the faint of heart.
We know, deep down inside, that the stock market is a living breathing entity and that the economy will bounce back. But, in the moment it sure doesn’t feel that way. This is one of the reasons why our plans at The Prosperity People are focused on your goals — not on stock market performance.
Instead of enduring heart palpitations when that opening bell sounds, be strategic about how you organize your finances so you don’t have to worry about short term stock market fluctuations. Put five years worth of living expenses in fixed income investments. Everything else can go in investments that will fluctuate (but that also allow your money to grow).
Why five years? We know that the stock market typically has a five year recovery period. This strategy means that even during an economic downturn, you’ve set up your finances in a way that you can cover all of your expenses with confidence while you wait for the market to bounce back.
2. Automate to decrease your mental load
Take advantage of technological advancements so that you’re not having to think about money unless necessary. Setting up autopay with your monthly bills is a quick and effective way to lighten your to-do list.
But automation isn’t just about creating efficiency in your financial life. Automation can also be used as a psychological tool to bring more peace of mind. Here’s one of Andy Pulsfort’s favorite money mindset hacks to use with retired Prosperity People clients:
Up until retirement, you’re used to seeing your investments grow. As you make money, you contribute to your portfolio. Excluding stock market dips (see strategy #1 above), your 401(k) grows throughout your working life. But then you retire. And suddenly you’re pulling money from accounts instead of adding to accounts.
For some people, this is a scary financial juncture. Even though you’ve saved for decades specifically so you can spend that money upon your retirement, when the day comes it can feel counterintuitive.
Instead of grinning and bearing the stress, use automation to emulate the sense of a monthly paycheck and start paying yourself. Determine your monthly budget and set an auto deposit from your investing accounts into your primary checking. Doing so creates the illusion of “getting paid” and alleviates that nagging but inaccurate feeling that you shouldn’t be spending what you’ve rightfully earned.
3. Create wiggle room to allow for the unexpected
Understanding your personal preferences with how much money you need to sleep at night is a key point to explore when reflecting on your money mindset. What cushion gives you peace of mind? The magic number is uniquely yours, but some people identify an appropriate amount of wiggle room by asking questions such as:
How much money do I need so that I don’t have to clip coupons or look at price tags during my weekly grocery shop? (Unless that’s fun for you, then clip away!)
How many months of living expenses will alleviate fear of a layoff or other emergency scenario that would require an extended leave from work?
How much money do I need in my back pocket so that I don’t feel like a slave to my job and can take the time away from work that I want and deserve?
4. Develop a financial plan to inform your decision making
No matter how much you anticipate and prepare, the one thing we can count on is the unexpected. But navigating the unanticipated is exactly why having a financial plan in place is so essential.
Maybe your water heater bursts, perhaps you get an invite to a larger-than-life fairy tale wedding in France, or your employer implements a salary freeze. Whether good, bad, or part of life, the unexpected can send many into a knee-jerk reaction of: I don’t have enough money!
But instead of making decisions from an emotionally-driven place, a financial plan allows you to step back and look at these situations with logic at the forefront.
A financial plan allows you to know exactly how much money you have to spend when selecting a new water heater model. A financial plan validates that yes, your travel budget will allow you to accept the unexpected invitation to Paris. A financial plan allows you to understand the fiscal impacts of a salary freeze and determine whether or not to stay put, look for a new gig, or supplement your income with a temporary side hustle.
A financial planner does the math for you. Instead of panicking, you can pick up the phone and call us — and often we can assure you that yes, you’re going to be ok (with the numbers to prove it).
You Have The Tools: Now Set Your Intentions and Believe
Mind freedom doesn’t come easily. It takes work, it takes reflection, and it takes self exploration. But, when coupled with the tools needed to acquire time freedom and money freedom, you’re able to access a way of life that is both rich and freeing.
At the root of the three freedoms of prosperity lies intention. What do you value? What do you believe? What is your purpose? What informs and influences your decisions and behaviors?
When we consciously take the time to know ourselves, set our intention, and keep our intention at the forefront, we allow ourselves to be fully present in the joys that life brings.
You have the tools, now use them.
Interested in diving deeper and exploring your money mindset? Our very own SG Mohr is speaking on the subject at Power to Pursue’s upcoming Well-Being Summit on Saturday, September 30, 2023. Learn more and snag your tickets online.