New Research-Meditate To Improve Your Finances!

    So, what is that keeps you from improving your finances? While you could say “the economy” or “the lousy company I work for,” would it be fair to say that poor financial decision-making also has something to do with it? How many times have you regretted a purchase, kept throwing money at a failing business or investment, or continued to sink money into that money pit of a car or a house? How often are your financial decisions ruled by your emotions instead of sound financial sense?

    Recent research shows that there’s a simple and powerful technique you can use to do something about that. In this post, I’ll show you how to use this technique to improve your finances.

    At The Wharton School of Business, they’ve discovered that poor financial decisions come from mental-emotional biases that interfere with good decision-making. One of these is called the “sunk cost bias.” What this means is that when we invest in something financially and emotionally it is hard to give up that investment even when it proves to be a poor choice—and we are likely to keep escalating that commitment even though it takes us farther and farther into debt, suffering, or disappointment.

    Both individuals and corporations fall into this bias and it can be hard to break free from. For example, do you choose to go to that outdoor concert you paid for even when the weather is lousy and you are almost certain to have a miserable time? As a company, do you continue to invest millions in a failed product?

    The roots of this bias are “negative” emotions such as fear, anxiety, anticipated regret, or worry. For example, our “fear of loss” is actually much stronger than our “attraction to gain,” so we will neglect percentages and rationality when we make decisions that involve letting something go, even if it isn’t working for us. We also tend to overweight the possibility of an amazing turnaround, even when all evidence shows us that what we’re involved in is doomed to failure. Once we’ve invested in something we stick with it even as it takes us down. Companies will keep pouring money into failed ventures and individuals will keep sinking money into failed investments.

    So what’s the magic cure to these negative mental-emotional biases?

    Yes, you read it in the title. It’s meditation.

    Really?

    Yes, really—and this is coming from the prestigious and fairly conservative quarters of The Wharton School. Here’s what they’ve found:

    Even 15 minutes of meditation, such as following your breathing or doing a relaxing body scan, has an amazing ability to short-circuit the sunk cost bias and other negative emotional factors that lead to poor financial decisions. How does this work? Well, it seems that meditating activates the parts of your brain that enable you to observe your behavior and circumstances more objectively, while releasing the emotional attachments that lead you to make poor choices. After only 15 minutes of meditation, participants in the Wharton study were 30 percent less susceptible to emotional biases that led to poor financial decisions.

    And, that’s just after one session of meditation. Consider what might happen if you practiced meditation every day? Research shows that regular meditation practice builds strong circuits in those parts of your brain that enable you to relax emotionally and observe things more objectively. When you build those circuits through repetition, they are much easier to access when you need them.

    So, the next time you have an important financial decision to make, you might try doing some deep breathing for 15 minutes or practicing your favorite meditation technique first. You might save yourself a lot of money and dramatically improve your finances.

    I would love to hear strategies that have helped you improve your finances in the Comments below. And please share this post with your family, friends, and co-worker through the social sharing links. Thanks for sharing!

    P.S. “Core Meditations for Financial Freedom” guides you through meditations to help you improve your finances. Click Here to check it out!

      10 Responses to “New Research-Meditate To Improve Your Finances!”

      1. Denise says:

        Hi, Just letting you know that no matter how many meditation programs or positive thinking or of all the meditation i have done over the past few years has never brought me any lick financially to this day. I dont know maybe i was just born a very unlucky person. Anyway thanks for letting me get that off my chest. Kind Regards, Denise.

        1. Hi Denise,
          I appreciate you sharing your perspective.

          From my point of view, meditation is not going to make us have better luck financially or change our basic personality structure. Meditation can help us relax and think more clearly, so we make better decisions. It can also help us observe our limiting thoughts and beliefs, such as “I was born a very unlucky person.” These beliefs can run deep and affect the opportunities we see, the decisions we make, and the actions we take. I believe it is our perception of the right opportunities, our decisions, and our actions that create our financial well-being.

          I believe we are all here to contribute to others and this is the basis of the opportunities that are right for us. Meditation can help us get in touch with the Core of who we are and what we are here to do–and value that–so we see what we are here to contribute.

          Ultimately, I believe our financial well-being rests on the contributions we make.

          That is a perspective that has helped me do well financially. Maybe there is something helpful in that for you.

          Best wishes,
          Kevin

      2. Brenda says:

        Hi Kevin,
        Meditation was NOT for me. Of course not…only long haired young people do it. Well thanks to you I have tried it for some months now and suddenly each time I do it it gets easier. First thing in the morning or last thing at night I find, that with OR without your disc, I am breathing deeply, visualizing different parts of my body and clearing a pathway for calmness. Today on my walk I found I was taking in peace and letting out love with each breath …gosh I must be turning into a teenager – well I WAS, 70 years ago. My tensions are gradually easing. There is still a way to go I know but I feel I am letting go and at last getting somewhere….

        1. That’s so great to hear Brenda! Thanks for sharing that.
          Keep up your good practice,
          Kevin

      3. Great post citing research to support meditation! One way that I have improved my finances is to be more mindful of how I respond to another’s good fortune or wealthy possessions. I am more careful to respond with joy and appreciation for them rather than being envious of their prosperity. I am careful of what I give my attention to. Another’s good fortune is further proof of the Divine Bounty, which is available to all mankind. I rejoice in every rich evidence.

        1. I love that, Greg!
          Thanks for that mindset and practice,
          Kevin

      4. Judith says:

        Hi Kevin. Good morning. I would like to thank you for all the Meditation methodis you Daily send me. I am still stragling with my Financial Situation. With yr meditations I gather much Energy and am convinced this Problem is about to be OVER. Will let you know as soon as its accomplished. Soon I will be able to have the Funds to purchase the Videos you offer also for others. Thanks once again and HEAVEN BLESS YR GREAT HEART. Rgds Judith.

        1. Thank you Judith. I look forward to hearing about your progress.
          Best wishes,
          Kevin

      5. That was interesting info.connecting some normal psychological bias made worse by negative emotions affecting decision making solved by simple do it yourself meditation. All good especially because it’s in written format that I can afford.
        I don’t watch videos because out here I must use expensive Canadian Wi-Fi that eats up money that could be used to buy all the yoga I could ever want.
        I want you to know that some of your subscribers prefer written material. Thanks. Time to meditate.

        1. Thanks for the feedback Doug.
          Kevin

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