Becoming a free and independent thinker in a world overflowing with subliminal messages and dogmatic phonies is increasingly difficult. Many of us frenetically chase our tails, running from soapbox to dais screaming at those who disagree or don’t understand the so-called obvious, in effect just regurgitating what others have told us is undeniable truth. Jiddu Krishnamurti, a beloved philosopher and spiritual teacher, emphasized the unappreciated importance of thinking for ourselves. He believed that genuine understanding and transformation only came from authentic self-awareness and honest critical thinking, rather than reliance on external authorities or teachers. However, in our self-help-focused, “I’m not good enough” society, trusting in oneself and finding clarity within is unnervingly challenging.
We’ve explored the mindset of financial planning in the past, showing a clear connection between ancient philosophy principles and tackling the obstacles and challenges of financial planning. Beyond the basics of Stoicism lies a need for deeper study. Stoics provided the framework, but Krishnamurti and similar independent thinkers peel off the next layer of understanding—how to truly be free from authoritative and group thinking while becoming stronger through rigorous questioning and critical thinking.
Freedom from Authority
Instead of blindly following conventional wisdom that often outlives its proper application, Krishnamurti's emphasis on freedom from authority implies that individuals and families should understand their unique goals and situations and make the right choices accordingly, not based on others. We are often inundated with one-size-fits-all plans and strategies, but it’s best to understand one’s landscape and work with the strategies that fit best. Take the 4% rule, for example.
Alongside this is the herd mentality. Short-term noise in the markets, sensational articles touting the next hot stock, and fear of missing out often drive investor decisions. Unfortunately, this is the opposite of prudent long-term investing and instead leads to inflated returns that surpass the actual quality or performance of a company or fund.
Self-Awareness
Being self-aware helps us recognize our habits and emotional triggers. More importantly, it provides a foundation for adjusting systems appropriately, such as creating a different type of cash flow system. Most of us have our greatest asset (income) going directly into our most dangerous financial vehicle (checking/spending account). There are flows and systems to change this, and we don’t need to rely on manual transfers or budgeting to make this change and become unconscious savers rather than spenders.
Critical Thinking
Instead of reading biased blog posts from non-professionals, critical thinking involves thoroughly researching and understanding financial products and investments before committing to them, particularly from academics and PhDs in the field. This includes considering both the pros and cons, supporters and detractors, as everything comes with costs and tradeoffs. Only from a place of true understanding can we make the right decision for ourselves. Continuously questioning our underlying assumptions leads to being more informed and confident.
Direct Experience
It’s important to have a supporting advisory team that can listen, guide, educate, and implement strategies with you. Education is key, as you learn best through direct experience. Budgeting, investing, and planning for retirement in tandem with your advisory team can lead to improved financial literacy and confidence, which is often lacking in advisor relationships these days. Hands-on experience empowers families to understand strategies, have the proper thought process when making decisions, and feel more secure. Even for marketing talking heads making insane proclamations online that cost people money and security, having experience with real clients in the real world is key to true understanding.
Living in the Present
This might sound cliché, but by focusing on the present, we can reduce financial anxiety about the future and regret about past decisions. This leads to a healthier relationship with money and frees us from the grip of “I wish I did this sooner.” Take every day as a new start, a fresh platform to build from, and find the right team to support you.
2024-177099 Exp 06/26