Stoicism, the philosophy of enduring hardship with inner strength and tranquility, is having a moment right now. So, let’s dive in and explore key points of Stoic wisdom and how they can be applied to improving your financial wealth, security, and confidence.
About Stoicism
A description of Nancy Sherman’s book, Stoic Wisdom: Ancient Lessons for Modern Resilience, says: “Stoicism has become the new Zen, and a mega-industry for consumers seeking self-help.”
Stoicism originated in ancient Greece around the 3rd century BCE and found its most prominent proponents in thinkers like Seneca, Epictetus, and Marcus Aurelius. The philosophy focuses on achieving inner peace and resilience. Stoicism encourages accepting inevitable hardships with equanimity, and finding contentment in one’s own character and actions rather than external circumstances. Ultimately, Stoicism offers a practical framework for leading a life of purpose, tranquility, and moral integrity, irrespective of the challenges encountered along the way.
6 Pieces of Stoic Wisdom for Financial Success
Practice frugality and moderation: Focus on what is important to you
It does not matter how many books you have, but how good are the books which you have. – Seneca
It is the nature of the wise to resist pleasures, but the foolish to be a slave to them. – Epicetus
Extravagance is its own destroyer. – Zeno
Stoic wisdom advocates for living simply and in accordance with nature. Applying this principle to finances means embracing frugality and moderation in spending. However, frugality in modern life does not necessarily mean living without the things that are important to you. It means prioritizing how you want and need to spend your money and time and letting go of all the extras.
By distinguishing between wants and needs, you can allocate your resources more efficiently, ensuring financial stability and resilience while focusing on what makes you happy and satisfied with life.
Focus on what’s within your control
The more we value things outside our control, the less control we have. – Marcus Aurelius
One of the central tenets of Stoicism is the dichotomy of control – distinguishing between what is within our control and what is not.
When it comes to finances, this means focusing on factors like budgeting, saving, and investment decisions, while accepting external market forces beyond our influence.
Building and maintaining a holistic financial plan using a tool like the Boldin Retirement Planner empowers you to focus on what is within your control amidst the uncertainties of life. By strategizing and allocating your resources, you can prioritize saving, investing, and budgeting—actions directly influenced by personal choices.
This proactive approach enables you to mitigate risks, seize opportunities, and adapt to changing circumstances with greater confidence and resilience.Log in or create an account for the Boldin Retirement Planner. Evaluating your holistic financial plan monthly or at least quarterly can help give you this sense of control.
Practice deferred gratification
If you wish to be rich, do not add to your money, but subtract from your desire. – Epicetus
Being able to make choices that are satisfying in the moment while also being good for your future is a skill that sets you up for long term financial security.
Stoicism teaches the importance of delaying immediate gratification for long-term benefits. Applying this to finance entails disciplined saving and investing, prioritizing future financial security over short-term indulgences.
Embrace volatility and adaptability
How ridiculous and how strange to be surprised at anything which happens in life. – Marcus Aurelius
Stoics recognize the inevitability of change and volatility in life. Similarly, financial markets are characterized by fluctuations and unpredictability. By cultivating adaptability and resilience, you can navigate market turbulence and capitalize on opportunities that arise amidst uncertainty.Planning for your future and having back up plans for how to maintain your peace of mind and quality of life when things go awry is key to feeling a sense of confidence about your future financial security. Use the Boldin Retirement Planner to create your plan and back up plans.
Keep emotions in check
We are more often frightened than hurt; and we suffer more from imagination than from reality. – Seneca
Stoicism emphasizes maintaining emotional equilibrium in the face of adversity. In the realm of finance, this can translate to avoiding impulsive decisions driven by fear or greed.
For example: Fear can make people sell as a stock is tumbling downward. Greed can cause someone to hold onto an investment and not enjoy gains.
By cultivating a rational and composed mindset, investors can make more objective and sound financial choices.
Practice gratitude and perspective
When you arise in the morning, think of what a precious privilege it is to be alive – to breathe, to think, to enjoy, to love. – Marcus Aurelius
Stoicism encourages cultivating gratitude for what one has – especially those things that give meaning and purpose to life – and maintaining perspective amidst challenges.
In financial terms, this means appreciating wealth as a means to live a fulfilling life rather than an end in itself. By aligning financial goals with personal values and priorities, individuals can find greater satisfaction and contentment regardless of their net worth.
Use Stoic Wisdom to Achieve a Well Ordered Financial Plan
As the world grapples with challenges and uncertainties, the timeless wisdom of Stoic wisdom offers a guiding light for navigating life’s complexities, including financial matters. In a world marked by constant change, Stoicism reminds us that true wealth lies not in external possessions but in the tranquility of a well-ordered mind. And, a well-ordered financial plan enables a well-ordered mind. Check in on yours today with the Boldin Retirement Planner.
