Stoicism, the philosophy of enduring hardship with inner strength and calm, is having a moment right now. So, let’s dive in and explore the key points of Stoic wisdom and how it can be applied to improve your financial wealth, security, and confidence.
Here’s a little background on Stoicism and six lessons from this ancient philosophy that can pave the way to a richer, more secure financial future.
About stoicism
Everyone from Silicon Valley entrepreneurs to Wall Street investors to college students have recently turned to stoic wisdom as a guide to navigating life’s complexities, including finances. Description of Nancy Sherman’s book, Stoic Wisdom: Ancient Lessons for Modern Resilience, He says: “Stoicism has become the new Zen, a huge industry for consumers looking for self-help.”
Stoicism originated in ancient Greece around the third century BC and found its most prominent proponents in thinkers such as Seneca, Epictetus, and Marcus Aurelius.
The philosophy focuses on achieving inner peace and resilience. It teaches individuals to recognize the difference between what is within their control and what is not, emphasizing the importance of developing virtues such as wisdom, courage, self-discipline, and justice. Stoicism encourages accepting inevitable hardships with equanimity, finding contentment in one’s character and actions rather than in external circumstances.
Ultimately, Stoicism offers a practical framework for living a life of purpose, calm, and moral integrity, regardless of the challenges encountered along the way.
Practice frugality and moderation: Focus on what is important to you
It’s not how many books you have, but how good the books you have are. – Seneca
It’s theThe nature of the wise is to resist pleasures, while the fool is enslaved by them. – Abestos
Extravagance is self-destructive. – Zeno
Stoic wisdom calls for living simply and in harmony with nature. Applying this principle to financial resources means adopting savings and moderation in spending. However, frugality in modern life does not necessarily mean living without the things that matter to you. This means prioritizing how you want and need to spend your money and time and ditching all the extras.
By distinguishing between wants and needs, you can allocate your resources more efficiently, ensuring financial stability and flexibility while focusing on what makes you happy and satisfied with life.
Focus on what is within your control
The more we value things beyond our control, the less control we have. -Marcus Aurelius
One of the basic principles of Stoicism is the dichotomy of control – the distinction between what is under our control and what is not.
When it comes to finances, this means focusing on factors such as budgeting, saving and investing decisions, while accepting external market forces beyond our influence.
Building and maintaining a comprehensive financial plan with a tool like NewRetirement Planner enables you to focus on what’s within your control amid life’s uncertainties. By strategizing and allocating your resources, you can prioritize saving, investing, and budgeting, actions that are directly influenced by personal choices.
This proactive approach enables you to mitigate risks, seize opportunities, and adapt to changing circumstances with greater confidence and flexibility. Rather than being overshadowed by external forces, a comprehensive financial plan acts as a guiding framework, aligning aspirations with achievable goals and providing a sense of purpose and direction in financial decision-making.
Log in or create an account for NewRetirement Planner. Evaluating your overall financial plan at least monthly or quarterly can help give you that sense of control.
Practice delayed gratification
If you want to become rich, do not add to your money, but subtract from your desire. – Abestos
Nothing great is created suddenly. – Abestos
For your money and health, it’s important to understand that the decisions you make today have a significant impact on your future. The ability to make choices that are satisfying now and at the same time beneficial for your future is a skill that sets you up for long-term financial security.
Stoicism teaches the importance of delaying immediate gratification to achieve long-term benefits. Applying this to finance entails disciplined saving and investing, and prioritizing future financial security over short-term indulgence.
Embrace volatility and adaptability
How ironic and how strange it is to be surprised by anything that happens in life. -Marcus Aurelius
You have power over your mind – not over external events. Realize this, and you will find strength. -Marcus Aurelius
Stoics recognize the inevitability of change and fluctuation in life. Likewise, financial markets are characterized by volatility and unpredictability. By developing adaptability and flexibility, you can weather market turmoil and capitalize on opportunities that arise amidst uncertainty.
You cannot predict the future. Things won’t happen exactly the way you think. Planning for your future and having backup plans for how to maintain peace of mind and quality of life when things go wrong is key to feeling confident about your future financial security. Use NewRetirement Planner to create your plan and make backup plans.
Here are some resources to help you plan for potential fluctuations:
Keep emotions under control
We are often afraid of harm; We suffer from imagination more than reality. – Seneca
Emotions are not rational thoughts. When it comes to financial decisions, it is usually beneficial to look for a rational decision rather than one based on emotions.
Stoicism emphasizes maintaining emotional balance in the face of adversity. In the world of finance, this can translate to avoiding rash decisions driven by fear or greed.
Fear and greed are emotions that often cause irrational decisions when faced with the highs and lows of the financial markets. For example: Fear can make people sell while the stock pulls down. Greed can cause someone to hold on to an investment and not enjoy the gains.
By developing a rational and composed mindset, investors can make more objective and sound financial choices.
Learn more:
Practice gratitude and perspective
When you wake up in the morning, think about what a precious privilege it is to be alive – to breathe, to think, to enjoy, to love. -Marcus Aurelius
Stoicism encourages developing gratitude for what one has — especially those things that give life meaning and purpose — and maintaining perspective amidst challenges.
In financial terms, this means valuing wealth as a means to living a fulfilling life rather than as an end in itself. By aligning financial goals with personal values and priorities, individuals can find greater fulfillment and contentment regardless of their net worth.
Use stoic wisdom to achieve a well-organized 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. By embracing the principles of virtue, resilience, and rationality, individuals can cultivate a richer, more secure financial future while finding deeper fulfillment and meaning along the way.
In a world of constant change, Stoicism reminds us that true wealth lies not in external possessions, but in the tranquility of a well-ordered mind. A well-organized financial plan empowers a well-organized mind. Check how you’re doing today with NewRetirement Planner.
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