“Financial fitness is not a pipe dream or a state of mind. It’s a reality if you are willing to pursue it and embrace it.” – Will Robinson
One of life’s profound lessons is that health takes looking after.
Growing up, as kids and through our early adulthood, remaining fit, agile and active (for most) comes naturally. Ask how many 20-year-olds struggle with inertia or a second thought of joining an activity, chances are if it is something they are interested in, none! For an increasing number of people, their 30s and 40s mark a change in what they can subject their bodies to. Suddenly, good health and fitness become a matter of active choice and practice.
For some, who practiced healthy living practices all along – eating wholesome food, drinking in moderation, regular exercises etc. – the lead-up to growing older is smoother. Others, though may crash-land into their 40s and 50s and recover from then on with intentional incorporation of discipline, concerning their diets and exercising, even sleep habits. This can be hard work not because we think it does not work but because it only works if we do this daily. We need to consciously choose the healthier/ better option almost every time (the odd cheat day excluded, of course).
The same logic works with wealth creation. Good financial habits from the beginning can go a long way to making your financial position comfortable over the long run. The longer you delay incorporating a disciplined approach to managing your finances, the more drastic the steps you may need to take later on in life. You may even face the prospect that these steps may not truly get you to where you would have liked to be financially!
Here are some healthy living lessons we can incorporate into wealth-creation practices:
- Start Early: It is so much easier for one to add to an already disciplined approach to health. The same goes for your wealth. Saving and investing for example, no matter how small it may seem, can benefit from starting earlier, taking advantage of the power of compounding.
- Make your financial health a priority: Your decisions impact your financial health. Choosing to delay gratification may mean you can get something better just a little bit later on.
- Missing a day/ opportunity does not amount to failure: Understand that as emotional creatures every once in a while we may cave in and decide to splurge. Enjoy that and then reset and come back to the plan. Just remember though, exceptions should not become the norm.
- Set yourself targets and goals: List your goals – realistic goals, and break these down into milestones. Celebrate meeting these milestones. Having no goals is like a rudderless ship, you are unlikely to reach your destination if you don’t know which way you are heading. Break it down into smaller milestones, achieving these will keep you motivated on your long-haul journey. Remember the adage that if you fail to plan, you plan to fail!
- Know what works: With an overload of information built around trends and fads, it is imperative that you educate yourself and have a sound investment philosophy that is rooted in evidence. This allows you to not sway and simply “ape a trend” when considering your investment choices.
- Shortcuts don’t work: As much as we would all love for some quick easy fixes, just like for health shortcuts, get-rich-quick schemes do not work. Consistency, discipline and time are your friends to help achieve the best outcome for you.
- It is never too late: Know that it’s never too late to get going on your journey to financial health and independence. Course correction may in the least, allow for better outcomes than would otherwise have been the case.
- Seek help from experts: We live in a world of experts and as such, knowing when you need help to ensure you make informed decisions and remain on track and disciplined is key to continue to remain on track to experience a successful investment experience.
- It is your journey: Finally, it is your journey alone and comparing with others will not yield any productive outcome. Focus on your goals, your decisions and outcomes to enjoy this incredible journey where your disciplined approach over time seems to almost magically yield the results you worked for.
At the end of all of the above, you will come to love your “financially fit bod.”
Niyati Khanna (CFP® Professional, CA, MBA [Finance & Strategy]) is a representative of Alman Partners Pty Ltd, Australian Financial Services Licence No: 222107.
Note: This material is provided for GENERAL INFORMATION ONLY. It has not been taken into account your personal objectives, situation or needs. The information is objectively ascertainable and is not intended to imply any recommendation or opinion about a financial product. This does not constitute financial product advice under the Corporations Act 2001 (Cth). It is recommended that you obtain financial product advice before making any decision on a financial product such as a decision to purchase or invest in a financial product. Please contact us if you would like to obtain financial product advice.