Nirvana - the final goal of Buddhism - is a state without suffering or desire. It is a release from suffering. As an investor, achieving financial nirvana means being free from financial worries and anxieties that come with expected losses. However, this is easier said than done. Financial markets can be unpredictable. There's no telling how a certain event can trigger a domino effect and end up causing you losses.
In his book titled Financial Nirvana, author Sankarsh Chanda, outlines how an investor can ace the stock market without being disturbed by market shocks or financial loss.
For centuries, Buddhism has guided countless people to conquer their emotions and desires. It stands to reason that its teachings could also help you achieve nirvana in your financial journey.
Applying the 4 noble truths to finance
At the core of Buddhism lie the 4 noble truths. They are meant to teach you what suffering is and how to cope with it to achieve the ultimate salvation or nirvana.
Dukkha - losses will happen
According to Buddha, suffering comes in various forms. Life is far from ideal and often fails to live up to our expectations. Therefore, you need to accept suffering as a part of your journey.
Similarly, it is very unlikely for an investor to be right at every turn. You must be able to take losses in stride.
Samudāya - there are reasons behind every loss
No matter how random misfortunes may seem, they always have an origin. Buddhism teaches that there are three major roots of evil, which are also the three roots of suffering:
- Greed and desire
- Delusion and ignorance
- Hatred and rage
Investing gives you a chance to create wealth. However, there are times when greed can blind you. After a string of successful investments, you need to be careful not to get too confident in your abilities and be open to new information that might change your stance.
After suffering a loss, you might feel vindicated by the stock market, but it is important to contain the urge to mindlessly jump at the next opportunity to win back your losses.
It does not reflect negatively on you to take a safer route. You can choose to save your money in your Axis Bank Savings Account and earn interest while you find a sensible opportunity.
Nirodha - coping with losses
Just as suffering exists, so does its ending. Nirodha points to the possibility of liberation from suffering. It refers to the possibility of attaining nirvana - a state of mind where you can be free of fears and negative emotions like sadness.
In the context of investment, it refers to perseverance and patience. Investors who manage to earn high returns are those who know how to play the long game and how to hold their cards close till it's the right time to fold. Big wins and losses take place every day in the stock market, but it's the compounding effect of time that reaps the most benefits.
Magga - the true path to ending suffering
Magga is the Buddhist eightfold path that balances greed and extreme self-restraint, thus leading to nirvana. The 8 parts of magga are not meant to be achieved in a specific order. They can be more accurately described as 8 elements that draw strength from each other and raise you to nirvana.
The eight elements of Magga are as follows:
1. Right understanding
2. Right intention
3. Right speech
4. Right action
5. Right livelihood
6. Right effort
7. Right mindfulness
8. Right concentration
Among these 8 elements, the right understanding, the right effort, the right mindfulness and the right action can be directly influential in your investing journey and help you reach financial nirvana.
[Also Read: 5 Pillars of Financial Discipline to Lead a Healthy Financial Life]
Conclusion
Buddha teaches that suffering and disappointments are a part of life and the two cannot be separated. You need to accept them, but there's no need for despair. Like all things, sufferings have an end too.
It is the same for investing. Losses are a part of the journey but they are short-lived and have an end. They are often rooted in greed, ignorance or rage. The path to ending the anxiety from losses - financial nirvana - is made up of the right effort, the right mindfulness and the right action.
Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision
