Four pillars of wisdom

STOICISM is one of the most practical philosophies for daily life. Stoicism is a school of philosophy that hails from ancient Greece and Rome in the early 3rd century, BC. There’s a wealth of knowledge to be gained from the minds of some of the greatest Stoics like Marcus Aurelius, Seneca, and Epictetus. The Stoics elaborated a detailed taxonomy of virtue, dividing virtue into four main types: Wisdom, justice, courage and moderation. Today we look at Stoic wisdom, which isn’t just useful to live a better life, it can also help you save money and build your wealth.

Prepare during good times

When times are good – your business is thriving, you’re making good money, you’ve received a financial windfall – you need to prepare for challenging times. As Seneca once said, “It is when times are good that you should gird yourself for tougher times ahead, for when fortune is kind, the soul can build defences against her ravages.”

Life is cyclical

Some seasons are great, while other seasons are more difficult. When you’re in a great season of life, however, it feels like it will never end. That’s why most people spend as if the good times won’t end. But the reality is, you never know what the future holds for you; you might get laid off; you might need to pay for a medical emergency, so don’t spend as if there’s no tomorrow.

Instead, think like a Stoic. Use the harvest of a great season to prepare for a bad season. Put some of that cash towards an emergency fund. Put it towards your retirement fund. Use it to pay off your debt. Use today’s income to make life easier for your future. Life can be unpredictable, so you need to build a financial fortress during the most profitable seasons that protects against life’s most challenging seasons.

Focus on what’s essential

Most people major in minor things. They let the most trivial things distract them from what’s truly essential. As Marcus Aurelius once said, “You’re better off not giving the small things more time than they deserve.” To paraphrase the advice of personal finance expert Ramit Sethi, you need to focus on questions that can make you E30 000, not save you E30.

Time is money, so don’t spend too much time only to save cents.

These tiny expenses have almost no impact on your personal finances, yet it’s what people focus on the most. If you want to improve your finances, your time is much better spent on E30 000 questions: Can I earn more by negotiating a raise or switching jobs?

Should I start a side hustle so I can make an extra E1 000 per month?

What’s the interest rate in this 30-year mortgage?

Do I have a plan to pay off my debt?

These financial decisions truly move the needle, so they are worth spending your time on. Yet, most people ignore or avoid these questions because they are more difficult to ask. Most of us are obsessed with E30 questions, but we really should be asking E30 000 questions. Get those right and you will never have to worry about how much it costs to buy the small things. We only have so much time, energy, and decision-making power to spend on our finances, so don’t let E10 survival questions distract you. As Johann Wolfgang von Goethe said, “Things which matter most must never be at the mercy of things which matter least.” Focus on the big financial decisions such as increasing your income, investing early and consistently, minimising investment fees and paying off your debt.

Avoid ego traps

As Epictetus said: “Wealth consists not in having great possessions, but in having few wants.” Consumer culture wants you to believe you need more stuff, better stuff, and more expensive stuff to feel happy and confident. They have a financial incentive to make you believe that: You won’t be accepted by the tech crowd if you don’t have the latest iPhone; you don’t belong with the cool kids if you don’t wear designer clothes; you’re lower in social status if you drive a cheaper car than your neighbour and most people fall for these ‘ego’ traps.

They end up spending much money trying to look rich that they don’t have enough left to actually become rich. You become rich by investing in assets and or education that will make you more money in future. This is how you achieve financial freedom. But you’ll never achieve financial freedom when you play status games, fall into the consumer trap and let your ego dictate your spending. As Morgan Housel said, in The Psychology of Money: “Savings can be created by spending less. You can spend less if you desire less. And you will desire less if you care less about what others think of you.”

Focus on what you can control

Marcus Aurelius said: “You have power over your mind – not external events. Realise this, and you will have strength.” When you focus on what’s within your control, you gain power; you take ownership and you improve. When you focus on events outside your control, you lose power. You start blaming others and won’t move forward. For example, if you’re in a difficult financial place, don’t blame the economy, your boss or politicians. Instead, focus your resources on what’s within your direct control: Learn high-income skills; look for a better job; start a side-hustle; minimise your spending; budget; learn about investing and read books about money

And yes, bosses, politicians and the economy might have an effect on your life but when you start obsessing over these external things, you’re giving your power away. You’ll stay stuck in a place of financial difficulty. If you want to make a change, follow what the Stoics did; take ownership of your life and focus on everything you can control. Build better habits, learn new skills, improve your mindset and start today. Comment septembereswatini@ gmail.com