Buddhism’s hungry ghosts (or pretas) are tormented by their own desire, which can never be satisfied. They are always starving for more and can never consume enough to be satiated. This means they can never reach enlightenment, as they are stuck in a fixed mental state of wanting more.[i]
Would-be investors often find themselves similarly ensnared by the trap of desire. Social comparisons and the cultural influence of consumerism encourage us to constantly measure ourselves against others, often coming up short in our own estimation. Call it FOMO or, keeping up with the Joneses; either way, people tend to spend a lot of energy on an endless pursuit to stay level with or surpass those around us.
This impacts your financial success because you cannot fill a jar while also constantly taking from it. A hungry ghost could eat what was within and still not be satisfied. A comparison-driven investor could similarly squander their existing resources chasing status and stocks.
There is a phenomenon known as hedonic adaptation whereby we quickly adapt to positive changes in our lives, and they stop giving us the same happiness or thrill that they once did. So even if one did find good fortune, they could soon be dissatisfied and start looking for more.[ii]
Often our pursuits are inspired by the best intentions – to provide ourselves and our families with security and negate financial stress in our future. That is fine. That is admirable, even. But when these goal-driven ideals slide into comparison-driven ones, the waters can get muddied and treacherous.
You could argue that the impetus for financial planning is to eventually have ‘more’. But ‘more’ as a concept should not come at the cost of your current or future stability. This is what sets savvy investors apart from hungry ghosts.
There will always be some risk involved when you are investing, even in a robust, globally diversified portfolio. That is part and parcel of dealing with financial markets, which fluctuate randomly and have yet to be successfully predicted. The only thing you can be sure of with financial markets is that eventually, things will return to the mean. What goes up must come down, and vice versa – which, with a well-structured and balanced portfolio, gives us the opportunity to capture returns with the fullness of time.
In Buddhism, you can find enlightenment by freeing yourself from fixations within the realms of cyclic existence. With investment, you can find enlightenment by working with a trusted, fiduciary financial adviser.
Some tips for finding fulfilment in your financial journey:
1. Set realistic goals.
You are never going to be satisfied if your goals are beyond what you could realistically achieve given your timeframe, current income sources and lifestyle.
You are much better off setting goals that are actually achievable with discipline and time, rather than setting the posts so far that only divine intervention (or a conveniently timed Lotto windfall) would get you there.
If your goal is a comfortable and enjoyable retirement, sit down and work out what you would need to do so – then start thinking about what you may need to change in your current lifestyle to get there, rather than picking a pie-in-the-sky number and keeping your fingers crossed.
2. Focus on yourself.
The true key to avoiding comparison traps is to not engage in the culture. Avoid looking at other people’s lifestyles as a blueprint and focus on what would work for you.
This might mean limiting your exposure by unfollowing some social accounts or other media, but it could also be an opportunity for introspection.
3. Listen to the experts, not the echo chamber.
There is a reason why personal financial advice must come from qualified, registered financial advisers. It is a specific, regulated and nuanced field. While there are broad lessons which can be applied for general financial wellbeing, your unique situation should be treated as such when it comes to financial advice.
Comparison is the easiest way to lose sight of what’s really important. Rather than listening to what online ‘finfluencers’ are promoting as a means for you to access their lifestyle, try having a chat with your local financial adviser to discuss goals for your own lifestyle.[iii]
Keep your eye on the prize, not on what everyone else is doing, and you will find your own financial journey (and life in general) infinitely more satisfying. Working with a financial adviser can really help in this sense, as they will keep you focused on what’s important to your specific journey and can help relieve the emotional burden associated with financial planning.
Financial success is due to your mindset as much as anything else. Disciplined investors, working alongside a fiduciary financial adviser, will find themselves in a better position over time. Hungry ghosts remain as they were – unsatisfied, and often taking undue risks to try and get more than they have.
So, I ask - which path sounds better to you?
by Nick Stewart (CEO and Financial Adviser at Stewart Group)
· Nick Stewart (Ngāi Tahu, Ngāti Huirapa, Ngāti Māmoe, Ngāti Waitaha) is a Financial Adviser and CEO at Stewart Group, a Hawke's Bay-based CEFEX & BCorp certified financial planning and advisory firm. Stewart Group provides personal fiduciary services, Wealth Management, Risk Insurance & KiwiSaver scheme solutions. Article no. 360.
· The information provided, or any opinions expressed in this article, are of a general nature only and should not be construed or relied on as a recommendation to invest in a financial product or class of financial products. You should seek financial advice specific to your circumstances from a Financial Adviser before making any financial decisions. A disclosure statement can be obtained free of charge by calling 0800 878 961 or visit our website, www.stewartgroup.co.nz
[i] https://www.lionsroar.com/what-are-hungry-ghosts/
[ii] https://medium.com/@davidpriede/the-endless-pursuit-unveiling-the-roots-of-humans-insatiable-desire-for-more
[iii] https://www.stewartgroup.co.nz/we-love-to-write/get-advice-from-an-adviser-not-instagram
