November 23, 2021

Happy Money: Japanese Art Of Making Peace With Money

Dipin Chachlani

Asst. Manager - Knowledge Management, Network FP

For the last few years, many people have started talking about the behavioral side of investing and managing money. I was always fascinated by this topic. One can be a great stock picker, do all the research, and have all the skills, but if the behavior isn’t right it’s of little to no use.

A thought came to my mind, what if one is good at both? What happens next? And then, accidentally while thinking of this, I bumped into one of the YouTube videos (not sure if the algorithm can read our minds as well). It was about Money EQ (Emotional Quotient). It fascinated me, and there I was watching a MasterClass of Mindvalley on “The Japanese Art of Healing Your Money Wounds” by Ken Honda.

Post that, I started reading Happy Money – The Japanese Art Of Making Peace With Money by Ken Honda. Well, I must say it was one of my favorite reads of 2021. And in this article, we will discuss one of the least or never talked about concepts -. Money EQ and Happy Money.

Money EQ simply means how we react to money emotionally and what’s our behavior around it? Do you feel scared that you’ll lose it, or you spend lavishly, or you save too much of it, or you see it as more than that is what all that comes in Money EQ. I personally feel everyone should know how they feel about money and what money is to them and what they expect out of it.

So, what is “Happy  Money” then?

Happy Money is the money that is circulated with love, care, and friendship. I like to summarise it with when we spend on things which we really want instead of what society tells us to spend. Mostly, we feel stressed on the EMIs for the things beyond our means or we didn’t want to purchase or we bought due to our impulsive actions or to match our neighbor’s standards. That’s the point where unhappy money comes in.

Different people “want” different things at different life stages. For me, it’s books, courses, traveling, self-care, gifts, etc. at my current age.

Also, it’s not how much money we make or what we have that decides the flow.  Rather, it’s the energy that determines it. If we receive money joyfully and spend joyfully too, we’re in the happy money loop 🙂

So, how to create a Happy Money Flow?

• Donate Money
• Give something extra – always. It creates a sense of abundance within us.
• Buy gifts for your loved ones & friends – One of the most satisfying things EVER!
• Pray for happiness when you spend money
• Buy from someone you like

But, why don’t most people have a great relationship with money?

It’s because we were simply not taught in the right way! We all would have had some bad experiences with money in the past. Maybe that decides our entire future around money. Doesn’t it happen in our entire lives as well? Carrying old beliefs of the past that determines so much of our future.

I was always amazed when I saw people earning so great and yet not spending in the right way just because they didn’t have a good relationship with money and that is when I realized how important it is to have a great relationship with money apart from earning and investing as well.

As per Ken Honda, anyone can change the flow of money into a positive one by just doing two simple things and something we humans are pretty bad at. It’s “gratitude” and “appreciation”. It’s simple yet difficult to practice.

How can we, as personal finance professionals, add value to our clients’ lives?

I know you would agree with the happy money concept that you read just above and you would have experienced it too at times. The key is to be conscious of this concept going forward and preach this to clients also through your own example 🙂

As Ken says, people who spend money according to their aligned values tend to be more satisfied and happy than people who just spend mindlessly every time.

It all starts with the source when money comes in. When one is content with his/her work and shares their gifts in the form of their work with all the passion and full integrity, happy money starts to flow in. We as personal finance professionals have a direct impact on clients’ financial lives and also have a great responsibility. Let’s use it for a purpose bigger than ourselves and always work for the betterment of our clients.

Yes, you can create an impact 🙂