Stoicism originated in Ancient Greece in 300 BC and was a popular school of philosophy during the Roman Empire. Well-known adherents include Plato, Socrates, Seneca, and Marcus Aurelius.

According to the Stoics, virtue is the highest form of good, and being virtuous – through principles such as wisdom, courage, moderation and justice – leads to a well-lived life. Being in harmony with nature is also a fundamental principle.

Meanwhile, aspects such as wealth and health are viewed as opportunities to make choices that exemplify virtue.

With this in mind, how can Stoic thinking be applied to everyday money management? It might sound improbable, but here are six examples that suggest how this branch of philosophy could guide us to live meaningfully.

1. ‘Luck is when preparation meets opportunity’

This quote is as relevant today as it was when it was written by Seneca, a Roman statesman and philosopher who was born in 4 BC.

According to him, luck doesn’t just fall into our laps; rather, it’s something you create through hard work and determination. In other words, you make your own luck.

When it comes to personal finance, one needs to carry out ample planning and preparation. And it is through this that we “make our luck”.

For example, to find your ideal house in an ideal location, you will require enough savings or at least the down payment. If you manage to achieve this, is it “good luck” or good preparation?

Similarly, say you experience an unexpected financial setback or accident, but have sufficient insurance coverage and an emergency fund. Is it a matter of having good luck, or being well prepared?

2. ‘You have power over your mind, not outside events’

When the Roman emperor Aurelius wrote this, many things were beyond his control: rebellions, riots, political plots, you name it.

He understood that the only thing he could control was his thoughts and how he responded in his duties and virtue.

When you invest, there will always be a degree of risk for you cannot be 100% certain of the outcome. What you can control, however, is your knowledge and mindset.

There are several ways to act on this principle. For example:

• have a long-term view, which will enable you to be disciplined and filter out unwanted “noise”;
• consider when you are being impatient and jumping the gun, as opposed to thoroughly analysing your prospective investment choices;
• think about how you would react if things do not pan out well, remembering that your behaviour is within your own control.

3. ‘Waste no time arguing what a good man is – just be one’

We often let our thoughts and the opinions of others get in the way of our actions. Thinking and planning is important, but if it gets too overwhelming, we often feel paralysed and unable to take the next step.

This is true in personal finance, too. You might constantly question the “best” approach, second-guessing yourself. Or you might hold back from doing things because you want to do it “right”.

Past a certain point, realise that your plans are good enough and you can act now. As long as you have done your research and due diligence, have engaged trusted mentors and advisers, and have kept yourself abreast of current financial trends – you are good to go, so go!

4. ‘Curb your desire and you will get what you need’

The full quote from Seneca reads: “Curb your desire – don’t set your heart on so many things and you will get what you need.”

In today’s world, the line between wants and needs is tremendously thin. Many struggle to manage and control spending on unnecessary items. The allure of instant satisfaction is strong.

Hence, Seneca’s advice is aimed directly at identifying what you need and what you want. By doing this, you learn the importance of self-control and delaying gratification.

5. ‘Chase progress, not perfection’

You might have heard the saying, “Don’t let perfect be the enemy of good.” The Stoics have a clear view on this: progress is more important than perfection.

So, it’s more important to be consistent in saving. You might earn a lot but, if you don’t save, you will be trapped in a neverending cycle of simply needing to earn more, which could lead to bad or risky investment decisions.

Build up good personal-finance habits such as saving a portion of your income every month, building an emergency fund, putting funds into safe investments, and avoiding shortcuts.

6. ‘Watch the stars, and see yourself running with them’

When it comes to one’s finances, there are many pressures and concerns. You might need to save up for your children’s education. You could get into an accident or develop an illness. Urgent or unexpected things could make you lose sight of the bigger picture.

The Stoics advise that you pray for the strength to endure but also for the mind to enjoy whatever life has to offer, good or bad. You could have good months when you are able to earn more and control your spending, but other times, you might not.

What matters is the overall journey: are you any better from where you were when you started? Is it easier to make choices now? Do the challenges you face today promise a better you and a brighter tomorrow?

So, if you ever feel like beating yourself up over your financial decisions, heed the words of Aurelius and “watch the stars”.

This article was written by Su-Wei Ho for MyPF. To simplify and grow your personal finances, follow MyPF on Facebook and Instagram.