Friday, December 29, 2023
What is the common denominator between a successful workout routine and successful financial strategy? YOU and most importantly, your BEHAVIOR.
There are people who naturally love to work out. They live it and breathe it and become passionate about it. Me?... Not so much. If there is a ball involved like Basketball, Tennis, or my new fav Pickleball, then I’m all for it. Like me, going to the gym to run on the treadmill or to lift weights may not be exciting for you, but you understand how important it is to stay in shape and WHY you need to do it.
Even though you KNOW something is important, you usually don’t just wake up and decide to change your habits or your lifestyle. There is usually a catalyst or event that causes you to realize you need to make a change. Maybe a concerning report from your doctor, someone close to you experiences a health issue, or you play a pick-up game of basketball, and you feel like you’re going to pass out in 5 minutes… you decide something’s gotta give.
You decide to start working out and get in shape! It's exciting... because THIS time you are sticking with it.
Day 1: You knock out the workout and you feel great! You fix yourself a nice protein shake and then you start prepping your meals and planning your workouts for the rest of the week. You go to sleep pumped about what you did and tell yourself this time is different.... Then you fall asleep.
Next day you wake up... and you don't quite feel as good as you did when you went to sleep. You ache with every move and you’re asking yourself why the heck did you go so hard the first day. High School was 20+ years ago...
Now, you knew this was going to happen. You knew you would be sore after the first day. You know what you are SUPPOSED to do even when you don't FEEL like it.
You are SUPPOSED to keep going. Stretch it out, work through the soreness (I'm told it eventually goes away), eat the meals you planned, and do the next workout. (Maybe take it down a notch).
You focus on WHY you are doing this.
2 Days becomes a week, 2 weeks... a month! You are building that momentum and you are starting to see the difference. You feel good about yourself, but it's different than the feeling you felt after the first workout. You feel good because you are putting the work in and making your wish become a reality.
You skip that second work out. Start complaining to anyone and everyone about the soreness. You get on the scale and there is no difference. You sit on the couch and start watching TikTok videos explaining how you can “get fit without working out or changing your diet”. (magic pill?)
You may look in the mirror and see you aren’t in the best “financial shape" of your life. You may make more money than you used to, but if you aren’t paying attention, your expenses may increase along with your income.
Unchecked Expenses can Sink a Financial Plan
Being efficient is tough, especially now a days where everything is subscription based. You get nickel & dimed (which is a funny expression because who uses coins?) on everything you buy with small monthly subscriptions. You rationalize the purchases. "I make x amount of dollars; $5 a month is no big deal." These small add-ons don't have quite the same sting as the old cable bill, so it’s easy to start collecting them.
For some, keeping up with the budget comes naturally. (We even enjoy talking about the budgeting software we use and our spreadsheets!) Others though, may think its boring and don’t feel like messing with it, even know they KNOW its important.
But one day, something may happen that triggers you
You get a new boss that doesn't like you and the fear of "what if something happens to my job" starts creeping in, or the stock market has a correction, and you see the values drop in your account. The fear and anxiety are rising and finally you get sick of it and go through the budget for the first time in months (or even years?). And THIS time... is the time you are going stick with it.
Gathering all the data, logins, updating spreadsheets and organizing everything takes a while but finally you have everything together. You start reviewing your accounts and you realize what you are paying (STILL paying) for. Out come the scissors and you start cutting the "unneeded" subscriptions.
You see the credit card balances are also getting out of control, so you make a plan to get out of debt. You are excited because you feel like you are back on track and working towards a goal!
Then the kids realize you canceled the subscription to whatever it is they watch. Obviously, they are not pleased… and they say, "it’s ONLY $5 a month"...and your ego echoes "really?... you can't AFFORD $5 a month?" Talk about a shot to your pride. Suddenly, you don’t FEEL like sticking with it.
You know what you NEED to do...
You know you NEED to check your pride at the door and remember your WHY. Why do you want to be financially fit?
You KNOW you need to build that financial routine.
Work through that soreness and you will start to see the results. Your kids will get over it (and still love you), and you will begin to see progress from putting in the work to turn your "wish" of financial freedom into a reality.
You give in to your kids by resubscribing to the app, and then sit down on the couch and start watching TikTok videos of how to make $100k a month without doing anything...
"I have been impressed with
the urgency of doing.
Knowing is not enough; we must apply.
Being willing is not enough; we must do."
- Leonardo da Vinci
The truth is KNOWING what to do is way different than DOING what needs to be done to be successful. The strategy of "If I could just make more money" doesn't automatically work. Don't get me wrong, making a ton of money is extremely helpful to overcome financial inefficiencies, but what you typically find is your behaviors don't change. As your income increases, so do your expenses.
You must put in the work to see the results that you are wanting. There isn't a get rich quick scheme that is sustainable. You need structure and a routine, build that momentum, and give it TIME to work. Remember, you are playing the long game.
And the great thing is, you don't have to figure out how to do this all by yourself! Keep coming back to Save2Retire.com to learn more about creating and implementing your financial strategy.
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The information provided in this article is for informational purposes only. It should not be considered as financial advice. Please consult with a qualified professional before making any financial decisions.
Disclaimer: David McEntire is an Investment Advisor Representative with and offers advisory services through Provision Asset, LLC, a Registered Investment Adviser in the state of Texas