The 6 Meditation-Inspired Investing Principles
Photo by Gautam Ganguly on Unsplash
How training your mind can lead to financial peace and stability.
A young monk approached his teacher with a worried expression. “Master, every time I sit to meditate, my mind races with thoughts. I think about the chores I haven’t done, the conversations I had earlier, even whether I left the monastery gate unlocked. I’m always distracted!”
The master smiled gently and said, “Come with me.” He led the young monk to a bustling market in the nearby village. The noise was overwhelming — vendors shouting, children playing, animals braying. “Now, meditate here,” the master instructed.
The young monk was puzzled but followed the instruction. He closed his eyes amidst the chaos. After a few minutes, the master asked, “How do you feel?”
“Distracted, confused, anxious,” the monk replied.
The master nodded. “This market is like your mind. It will always be noisy. Your task is not to silence it but to find stillness within it. Just as the market will never be completely quiet, neither will your mind. Learn to be still, even when surrounded by noise.”
Have you ever noticed how your mind races when you sit down to meditate? Thoughts swarm like a chaotic market, and your attention bounces between them, trying to keep up. Investing can feel the same way. Many of us are swept away by the noise of financial news, market fluctuations, and the emotional rollercoaster of gains and losses. But just as meditation helps us find peace amidst the chaos, mindful investing can bring clarity and calm to your financial decisions.
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Here are six meditation-inspired principles to transform your investing practice:
1. Emotional Reactions Cost You Returns — Practice Patience
Did you know that the average investor underperforms the market due to emotional decisions? Many investors buy high when euphoric and sell low when panicked, which leads to underperformance.
Think of it like meditation: when thoughts arise, the impulse is to chase after them. In investing, emotions like greed and fear are the thoughts that lead us astray. But a mindful investor, much like a seasoned meditator, learns to observe these emotions without acting on them.
To truly understand why we react emotionally in investing, it helps to look deeper — not just at our thoughts but at our very human nature. Our entire being is wired to chase pleasure and avoid discomfort. Knowing this, we can be compassionate with ourselves, understanding that learning to invest wisely is a gradual process, much like meditation.
Key takeaway: Each time you recognize an emotional reaction in the markets and choose not to act on it, you’re training your mind. Over time, this practice reduces the cost of impulsive decisions.
2. The Market, Like the Mind, Thrives on Stillness
Financial markets often feel like that chaotic village market: unpredictable, noisy, and overwhelming. But here’s the truth: it’s not the external world that’s chaotic, but our reactions to it. Just as meditation helps us observe our thoughts without identifying with them, a mindful approach to investing allows us to see market trends without overreacting.
By applying what we practice on the meditation cushion — cultivating awareness of the present moment — we learn to observe financial news and market fluctuations with detachment. Instead of getting caught up in every rise and fall, we remain grounded, adhering to our long-term strategy.
Key takeaway: Observe the market like you observe your thoughts — without reacting.
3. Focus on the Long-Term
Meditation teaches us the value of focusing on the present moment, but it also instills the wisdom of impermanence: everything changes. Markets rise and fall, but over time, they trend upwards. A mindful investor takes the long view, focusing on years and decades, not days and weeks.
Consider index investing: instead of trying to time the market, mindful investors may choose total market investments or broad indices like the S&P 500. This approach leverages the natural growth of the economy without the stress of constant decision-making. It embodies the concept of “Investing in Absence,” where you set your strategy and step back, letting time and the market do the work.
Key takeaway: Just as discomfort in meditation passes, so do market downturns. Trust the long-term process.
4. Use Mindful Pauses Before Making Financial Decisions
A helpful technique borrowed from meditation is the “pause.” When faced with a financial decision, pause, breathe, and give yourself space to respond thoughtfully rather than react impulsively. This practice of intentional pause can transform your investing approach, reducing stress and enhancing clarity.
Key takeaway: Practice mindful pauses. The space between stimulus and response is where wisdom lives.
5. Simplify Your Investments to Reduce Anxiety
Meditation helps declutter the mind, allowing us to focus on what really matters. The same principle applies to investing. The more complex your strategy, the harder it is to maintain peace of mind. Over time, I’ve learned that simplicity in investing — just like in meditation — leads to better outcomes.
I call this the Serenity Portfolio — a simple, well-diversified approach designed to be “set and forget.” By simplifying your investments, you reduce anxiety and free up mental space for what truly matters.
Key takeaway: Keep it simple. Simplified portfolios lead to a simplified mind.
6. Be Kind to Yourself: Investing Is a Gradual Learning Process
Just as you wouldn’t expect to achieve enlightenment after a single meditation session, you can’t expect to master investing overnight. Both are lifelong practices of learning, adjusting, and growing. Be compassionate with yourself and remember that progress, not perfection, is the goal.
Each time you resist the urge to react emotionally to the market, you’re making progress. Embrace the journey of becoming both a mindful meditator and a mindful investor.
Key takeaway: Be kind to yourself. Investing, like meditation, is a journey of gradual growth and self-compassion.
Ready to Transform Your Financial Journey?
By training your mind to steady the market inside of you, you will find not just financial success, but also a deeper sense of inner peace. Start with small steps. If you don’t already meditate, begin with a simple daily practice. If you do, apply those same principles to your financial life.
To dive deeper into how mindfulness can revolutionize your investing approach and bring you closer to financial freedom, order my book Investing in Absence: How to Ignore the Markets, Come Out Ahead, and Have Peace of Mind While Meditating for 3 Months.
Let the journey of mindful investing be your path to both wealth and wisdom.
