“Between stimulus and response, there is a space. In that space is our power to choose our response. In our response lies our growth and our freedom.” – Viktor E. Frankl
At WellsFaber, we understand that our reactions to life’s challenges significantly shape our experiences. This is especially true when it comes to our financial planning, where emotions can sometimes cloud our judgement, leading to less-than-ideal outcomes in how we react to both lucrative and challenging situations.
Daily interactions, such as a driver cutting you off in traffic, can trigger intense feelings of anger that linger, affecting your mood and behaviour for hours. Similarly, a heated conversation about finances can escalate quickly, leading to words or decisions we might later regret.
Reaction is often an immediate engagement with an emotional trigger, but creating space to slow down and think first allows us to respond, rather than react.
Recognising these emotional triggers is the first step in learning to manage them effectively, ensuring they don’t control our actions or dictate our financial well-being. One of the tricks to remember is that where emotions can influence our behaviour, we can flip that over and behave in a certain way to manage our emotional state.
Here are some tips that we have found to be exceptionally helpful in slowing down the process.
1. Box Breathing: This simple yet powerful technique can help manage immediate emotional responses. Here’s how it works:
– Inhale slowly through your nose, counting to four.
– Hold your breath for four seconds.
– Exhale slowly through your mouth for four seconds.
– Hold again for four seconds.
Repeat this cycle four times whenever you feel overwhelmed or agitated. This method helps calm the mind and restore a sense of control.
2. Mindful Observation: Practice observing your thoughts as if they were clouds passing in the sky. This mindfulness practice enables you to acknowledge your feelings without immediately reacting to them, creating a buffer between feeling and action. In a healthy emotional state, we are able to both recognise and react in a beneficial way.
3. Progressive Muscle Relaxation: Tense each muscle group as you breathe in, and relax it as you breathe out. Start from your toes and work your way up to your head. This technique not only helps reduce the physical symptoms of stress but also aids in calming the mind, which is particularly useful before making your next move.
Emotional regulation is crucial when investing or planning your finances. Quick, emotional decisions, such as panic selling during a market downturn or making impulsive purchases, can harm your financial future. By applying techniques like box breathing, you can approach financial discussions and decisions with a calm, clear mind, ensuring that your actions align with your long-term financial goals.
Understanding and mastering your emotional responses is not just beneficial; it’s essential for both personal growth and achieving financial freedom. Regular practice of these techniques can enhance your ability to make informed, thoughtful life choices under pressure.
Reflect on how emotional responses have influenced your financial journey in the past. Consider incorporating these emotional regulation techniques into your daily routine to enhance both your financial and emotional well-being.
We advise, you thrive.