Happy Marriage

I don’t mean everyday is Valentine’s Day.  And, I don’t mean that you need to even share the same vision financially – although it helps. 

My observation is that the deal-breaker for wealth accumulation/preservation is spite.  As long as each person feels supported in their endeavors, encouraged, and heard – time will play to the couple’s favor. 

Spite buried and not discussed is like hidden investment fees that might only reveal themselves years later when viewing the compounding effect.

No One Cares

No one cares about your degree, your job title, your house, or your car as much as you do.  They likely don’t care at all. 

Knowing this is helpful when making major spending decisions.

Give It Time

There are exceptions, but almost anything lucrative and worthwhile takes time.  Yes, of course, this goes for saving money and the brilliance of compounding.  This also holds true for relationships, careers, education, and learning an instrument. 

An increasing question I ask myself if pulled into a certain direction: “Can I definitively do this for 3 years?”  It’s a somewhat arbitrary number but 3 years has proven transformative for me.  Professionally and personally. 

If I stick with something that long, the impact is usually too great to value.

Evolutions, Not Revolutions

Seeing 10-20 years out is a helpful skill set.  We need visionaries. 

Two challenges, though.  1) That vision is likely wrong.  Maybe in a vacuum it’s true.  But, so many other contributing factors that we’ll never see or notice also contribute to the outcome that make a revolution not useful – even harmful.  Instead, 2) Look for the evolutions – anything that keeps you from sitting on your hands or doing something drastic.    

Additionally, evolutions allow refinement as you go.  Revolutions are trickier to unwind and improve upon.

Evolutions help with a family’s finances, which are nearly never completely simpatico, and carry varying agendas.  People respond to evolutions, not revolutions. 

Don’t Screw Up

Ok, make mistakes, of course.  Mistakes are one of things I love about the no cost trading application, Robinhood.  Millions of young investors will most likely make investing mistakes with short money that they would have otherwise waited to make once they had ‘real’ money and a platform that supported them.  In other words, novice investors may cut their teeth now with not a lot to lose.

I had a mentor in high school who always spoke to me with golf analogies.  “Mitch, avoid the double bogies”.  He had quite the list of life’s dilemmas he classified as double bogies, but the lesson stuck.  Keep yourself in the game by avoiding the big mistakes.  Of course, life is full of second chances, apologies, forgiveness, and fresh starts.  It’s nice to not have to bank on them, though.  Cashing them in does slow down the process.

Warren Buffet speaks to this: “Paradoxically, when ‘dumb money’ acknowledges its limitations, it ceases to be dumb.” 

Many really ‘smart’ people don’t know their limitations and are far from the immunity of ‘screwing up’.

Freedom, Not Money

The craving is for freedom, not money.  Let that be your focus. 

Data routinely reveals that the anxiety of someone striving to “make it” is no different than the anxiety of someone striving to “keep it”.  Same stress, different triggers. 

The focus on freedom creates more capacity for wealth.

Thanks for reading,

Mitch

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