How Gratitude Can Improve Your Finances

A considerable number of adults worry excessively about their finances. And there’s always something to worry about. It could be basic bills like electricity or bigger ones like mortgages or retirement funds.

If we allow ourselves to become fixated on the burden of finances, we can invite dangerous friends into our lives like stress which breeds anxiety and other illnesses. Being sick does us no good. It just means more spending.

WHAT IS THE CONNECTION BETWEEN GRATITUDE AND FINANCES?

Fear and anxiety are two emotions many people associate with their finances. However, many financial experts have confirmed that there is, in fact, a positive correlation between gratitude and one’s finances. Practicing gratitude is often reflected in better account balances and spending habits.

One financial adviser broke it down this way: when individuals express or practice gratitude, the urge to purchase items in hopes of deriving joy and happiness reduces significantly. Instead, the gratitude mindset spurs them to focus on more fulfilling endeavours like spending time with family and nurturing relationships.

HOW DOES GRATITUDE WORK?

It often begins with one’s perspective: do you see a glass of water as half full or half empty? How do you react to unexpected situations? Do you approach life with optimism? Or are you quick to panic?

In the event of scarcity, the mindset one nurtures determines whether one will rise to the challenge and adopt smarter decisions or become paralysed by fear, make terrible decisions, and perhaps spiral into debt.

Research also confirms that mental health influences an individual’s spending patterns. A gratitude mindset can easily shift an individual from scarcity into abundance. When one becomes grateful for what they have, they are less likely to make financial decisions driven by impulse. Instead, they can focus on making high-value decisions for the long term.

Black Friday shopping is an excellent example. Do you indulge the urge to keep purchasing items you might not need to derive pleasure? An economic concept experts call diminishing marginal utility revolves around the theory that the more individuals get a thing or do a thing, the less satisfaction that thing gives them.

Gratitude helps individuals appreciate a thing or experience and gives them the wisdom to stop wasting time or resources searching for more.

THE OPPOSITE OF GRATITUDE IS GREED

But individuals who do not understand when to stop or how to maintain a deep sense of gratitude often find themselves gravitating toward greed.

An investment specialist says that greed is the direct opposite of gratitude. In his experience, it is often the driving factor of the most ruinous decisions. Like when an individual lacks the discipline to objectively assess an investment risk which could have debilitating consequences on that individual’s portfolio.

Greed seems from a deep desire for control and a fear of never having enough. However, gratitude is the antidote- the best weapon an individual can have in their arsenal against fear and greed.

BENEFITS OF GRATITUDE

Gratitude improves your brain’s capacity for productivity. Shawn Achor, a psychologist, has been helping people embrace daily gratitude practices. He confirms that when individuals adopt gratitude and change their mindset, their productivity often improves by nearly 40 percent. Their accuracy on tasks and efficiency also surge by 19 percent. Their chances of being promoted increased by 40 percent, and they managed stress 23 percent more than their counterparts.

Grateful people attract more opportunities. As an employer or employee, gratitude translates to better opportunities. People love patronising businesses that demonstrate gratitude for their clients and consumers. Employees are also more likely to remain a part of a business that appreciates and values them. This often guarantees greater loyalty and less turnover.

Gratitude could earn you more money. A study published on Business Insider shows that students who embraced gratitude grew into adults with higher life satisfaction and incomes about 10 percent higher than their peers.

Gratitude is a useful tool for finances and even the general quality of one’s life. Consistently practicing gratitude often makes one more generous. People who practice gratitude are often more outgoing. They also experience less stress and are consequently healthier. There are reports of lower blood pressure, fewer aches, and better sleep.

TIPS FOR PRACTICING GRATITUDE

• Understand that gratitude is like a muscle that you can only grow if you’re intentional and consistent.

• Begin by making daily entries into a gratitude journal and expressing gratitude whenever possible at every opportunity.

• Don’t wait until things are convenient, be grateful now for what you have.

• Remember that gratitude is a choice you make every day.