It can be overwhelming to think about the ways that our values and money interact in our lives. Some people might know they want their money to create positive impact but feel unsure of where to start. Unless we bring intention and clarity to our money life, the money flowing through our lives may be fueling human suffering and environmental destruction.
What do we do with this knowledge? If we are able to work on our relationship with money, we can learn to engage with money so that it becomes not just neutral but positive. Money can even become a sacred tool for good if we use it purposefully to support a positive vision—for our own lives and in the bigger world.
The U.S. stock market dipped notably in early August and exhibited considerable volatility throughout the month. The market drop and subsequent instability, which stretched into September, were related to concerns about growth prospects for the U.S. and global economies. These concerns were validated by the Fed’s decision to cut interest rates in late July—the first rate cut since the Great Recession.
The stock market headed into summer on an up note, with large company stocks rising 3.4% for the quarter and small company stocks up 7.8%, though foreign stocks were down 1.2%. More interest rate hikes continued to weigh on bonds, which were off 0.2% over the three months.
The bond market is historically far less risky (volatile) than the stock market, though the market still does fluctuate. One of the key drivers of bond market fluctuations is movement in interest rates. The Fed, which sets short-term rates, has increased the rate twice so far in 2018 and has stated its intention to raise it twice more.
I bought a used bicycle in 2010, for $200. It certainly is not the fanciest, no carbon fiber or titanium, but it’s sturdy and has stood up well for the past seven years. I’ve spent some money on tune-ups, replacing tires, a new helmet, a rack, and gear bags as well. Altogether, I have spent just under $1,000 on it.
Many days I choose to commute to my office on this bike, an eight-mile round trip, which takes me about forty-five minutes total. Having done this for a number of years, that’s about 11,000 miles of travel on this bike on trips where I would otherwise have been driving.
None of us wants to think about the possibility of losing our ability to make sound financial decisions, but many of us eventually will, owing to an accident or illness, especially some form of dementia. What would happen, for example, if in a period of impaired judgment you started taking large amounts of money from your accounts or were enticed to fund a get-rich-quick scheme? Is there anything that can be done to help protect you and your assets?
An easy first-line defense is the NI Sharing of Information Consent Form, which you can file with your advisor. The form gives your advisor and Natural Investments permission to contact designated people if your advisor perceives that a request or behavior is uncharacteristic of you and your goals. An unusual request does not necessarily signal a loss of capacity to make decisions, and in all likelihood the form would never be needed. But should the situation occur, a quick double-check by your adviser with someone whom you trust could prevent a potentially significant mistake. Your advisor can help you choose the best person for this role.
Let’s begin with a free association. Pause for a moment; write down what comes to mind when I say the word “money.” OK, done?
Based on my own personal relationship with money, and my work with hundreds of people over the last decade, I’m guessing many of your words have a negative connotation. Not all of your words, I’m sure, but some. The darker thoughts seem to be ingrained in us to some degree. Judgment. Shame. Heart is racing, feeling anxious. Anger toward oneself, and toward others—even your most beloved—about how their behaviors impact your financial wellness.
Perhaps since the dawn of money, humans have had a love/hate relationship with it. Money is one of our most enduring sources of personal stress. Even with the work that I do, helping others with their relationship with money, I have my moments of struggle with my money friend. The doctor still needs a doctor, right?
We have begun to bring the sacred back into parts of our lives where it was once lost. Mindfulness, as taught Thich Nhat Hanh and others, is a way of being in the moment: conscious and connected, aware. Books and articles abound with discussions of applying mindfulness to the core areas of our daily life. For example: eating mindfully supports our health and connects us to the wonder of our food. Sitting down together with those that we love, we give thanks and bless the food and those who have provided it to us. We think of the farmers and many others who are part of getting the food from seed to our table. We celebrate and quite naturally find the sacred in this practice.
As we begin this new year of 2014, I am inspired to build the same type of mindfulness practice with my relationship with money.