Investing Lessons from Yoga
I’ve been practicing yoga more or less consistently for more than 15 years. Before the pandemic made the prospect of being in a sweaty room with a dozen other people too dangerous, I got up at 5:00am four days a week to go to classes before work. Since the pandemic made it difficult to practice in person, I have made do with classes on YouTube. Someday I hope to get back to in person classes. Yoga has been hugely beneficial to me, both physically and mentally. For many years, I have battled a low-level but persistent form of depression which is only really alleviated by regular physical activity. During the time I’ve been practicing yoga, I’ve tried to apply the lessons I’ve learned to other areas of my life, especially in how to be a better investor. Below are five lessons that I have taken from yoga and applied to my investing approach. I hope they are helpful for you too.
1. Beginning is the hardest part
The most difficult part of a consistent yoga practice is getting to the mat. Once you commit to begin, the rest is easier. When I was going to early morning classes, the hardest part was getting out of my warm bed, gathering up my mat and towel, and going to class. There’s a parallel here with investing. The biggest step is getting started: making a commitment to regularly contribute to retirement and brokerage accounts takes effort, but once you get started, continuing along the path is easier.
2. It is a practice, not achievement of an end state
Yoga is not an activity with an identifiable end goal. The process is the purpose. One doesn’t undertake a yoga practice with the thought: “I will do this until I am more flexible, toned and mentally centered, then I can stop.” Investing is similar. You may start investing because it will help you achieve other goals: retirement, college savings, etc., but the key to being a successful investor is consistent practice and mental discipline. Achievement of your financial goals is merely the side effect.
3. Accept that you cannot control everything
Yoga is often humbling. You will attempt poses that are uncomfortable or impossible. Your body will be uncooperative. You will get tired and may need to take a break. The same is true of investing. Successful investors learn to go with the flow. They understand that they cannot predict or control what the markets will do. They will endure painful market downturns, but they understand that this is just the way of things. Ego is the enemy of the successful investor.
4. It’s your journey, but others will help you
One of the frustrating things about not being able to attend in-person classes during the pandemic is that there is no feedback from the instructor. Everyone’s practice is unique to them but having someone there to make an adjustment or correct a pose is extremely helpful and can prevent injury. Your investment goals and approach are unique to you, but there are resources available to help you along the way. I have worked with a financial advisor for many years, and her feedback has always been helpful.
5. Progress is only noticeable in hindsight
One of my yoga teachers used to say that a yoga practice doesn’t get easier, you just get better at it. And as you get better at it, you challenge yourself more. The progress you make from practicing yoga consistently will not be apparent to you as you go, but you will be able to look back and see how far you have come. Investing is always hard. You will encounter setbacks along the way, but after years of consistent and disciplined investing, you will understand how much you have progressed.
Interested in yoga? I have been taking YouTube classes with Adriene