Yoga and wealth: An 8-fold path to financial nirvana

What’s common between  wealth creation and yoga? Nothing much, you might think. Not quite. There are eight stages of Yoga, which may roughly translate into eight steps to be followed for attaining financial freedom. Called Ashtanga – or eight limbs – yoga experts say these eight steps, if practiced diligently over time, bring you good mental and physical health. Growing your wealth, in reality, is not very different. Let’s look at how these eight stages of Yoga can help you become a better investor.

Yama

The first stage of Yoga deals with ethics. It doesn’t necessarily mean that you should just invest in socially responsible companies. But we must be ethical in the way we invest. “Stop treating your equity investments like a gambling activity. You should avoid buying and selling frequently,” says Bharat Chawda, a Mumbai-based yoga instructor who runs Om Yoga classes.

Many of us buy mutual funds going by just the past returns. Many of us also churn our portfolios once we make some profits and reinvest the amount in something else. ‘Yama’ also teaches us to avoid unethical companies and fly-by-night firms. Investing in the right way give us peace of mind.

Niyama

Skipped yoga for a movie here or some junk stuff there? If you do this frequently, indiscipline creeps in and your practice becomes irregular. Accumulating wealth also needs discipline. Niyama means discipline. Do not prematurely withdraw from your corpus. Dipping in your retirement kitty to make impulsive purchases or even skipping your regular systematic investment plan can derail your wealth creation process.

Asana

Asana denotes actual performance of various yogic postures. We know that we want to growth wealth. But to do that, we need to actually start investing. Think of investing as a series of asanas. Many of us don’t save enough because spending takes priority. “If you have monthly income of, say, Rs 1 lakh, and if you earmark 30 percent of it for your expenses and invest the rest, that is great. But if you spend 70 percent and invest just 30 percent, that is not good. You won’t build wealth if your expenses outweigh your income,” says Bharat.

Pranayama

This stage refers to meditation that calms our mind and brings peace. Investing regularly, financial experts say, brings about peace because you know that your money is working for you. Think of pranayama as a systematic investment plan (SIP) in a mutual fund. Bharat says that pranayama or the state of meditation and a series of breathing exercises don’t show results overnight. But if you practice it regularly, you notice the difference. An SIP is much the same. It doesn’t show results overnight, not even within the first three years many times. But invest regularly and your chances of making a loss goes down as your tenure goes up.

Pratyahara

In Yoga, this stage means that you stop being controlled by external forces and pay close attention to your inner self. It’s about what you learn by focusing inwards, how you better train your body and mind, instead of relying on what others tell you. Successful investing is much the same. Ever got swayed by hot tips that your friend or neighbour gives you? Keep away from Whatsapp chats that forever exchange ideas on the next best investing opportunity. “Don’t be part of the herd mentality and don’t look for short cuts,” says Kalpesh Ashar, founder, Full Circle Financial Planners and Advisors.

Dharana

Dharana refers to a state of mind where you are aware and conscious of what you have to do. It signifies determination. Successful investing also involves Dharana to such an extent that it becomes your religion or your way of life. Of course, that doesn’t mean you should stop doing other things. It’s not abstinence from other aspects of your life. Instead, Dharana makes you aware of your responsibilities as an investor, ensuring that you adhere to basic hygiene standards.

Dhyana

A word commonly used in our everyday vocabulary, Dhyana means focus or concentration. Those endowed with Dhyana can perform their yogasanas easily, though it is not easy to achieve such a state. Similarly, it’s important to focus on your goals as well. While dharana makes you aware and conscious of the fact that you need to work towards your goals single-mindedly, Dhyana makes you focus you on your goals. “If you have dharana and dhyana and still your investments go bad, you won’t feel bad. But if you invest based on some tips that you got, and your investment doesn’t work out, then you feel dejected and disappointed,” says Bharat.

Samadhi

This is the final stage of Yoga. It means being in a blissful state. And as far as your money life is concerned, it means goals. It means you have reached your financial goals. You don’t need to stop investing once you reach this stage. So, you now have the corpus necessary to spend on what you’ve been saving for. This is the stage that all investors must aspire to reach. And it can only be reached if you cross all the other stages.