Happy New Year! For many of us, the end of the year brings a hectic rush. It’s difficult to take the time to reflect back over the previous year and also to look forward to the coming new year. I’m hopeful we can all take a bit of time to measure our 2021 and to plan for 2022.
What went well for you in 2021? Having a positive focus clearly gives us a more upbeat point of view. This doesn’t mean we ignore obstacles or negative issues. Yet, even when we experience setbacks or obstacles, having a positive focus promotes getting in motion to tackle the difficult tasks required for progress. And getting in motion tends to keep us in motion (yes, just like the laws of physics). And staying in motion leads to progress. When we assess what went well in our lives during the past year, most of us learn better when we memorialize our thoughts. In other words, write these things down. It is a proven fact that we hold in our memory far greater that which we write down. This isn’t hard to do. This isn’t very complicated. Everyone in our country has access to a pencil and a piece of paper. What went well for you in 2021? Write it down. After assessing what went well, then ask yourself why these things went well. Then ask why these things that went well mattered to you. Then continue on with what you can do to continue these things or types of things.
Next, what small first steps can you take to get into motion toward continuing these things that went well for you? The difference in those with long-term success and those without is almost always very slight differences in behavior. One of those glaring differences is the thinking of the long-term successful folks and the discipline they have to stay in motion toward progress. Sounds simple. Actually, it is simple. Our greatest achievements always result not from a giant one-time windfall but from a series of starts and fits and failures and continued motion toward progress.
In dealing with the things that did not go well for you during 2021, the same exercise applies: Write them down. Then assess why these things didn’t go well. Why did these things that didn’t go well matter to you? Then, as above, continue on with what can you do to eliminate these things that didn’t go well for you. What small first steps can you take to get into motion toward eliminating these things that didn’t go well?
This line of thinking is very applicable to financial security. The majority of Americans who have attained financial security have done so through discipline and sacrifice and patience. There are far fewer folks who have inherited or “hit the lottery” with sudden wealth than those who have accumulated over meaningful periods of time and been disciplined in their investment philosophy.
Bottom line, the financially secure among us have saved, sacrificed (there’s a word that’s not very popular in today’s world), and invested well. Saving is always the first step. Sacrificing doesn’t mean we have to be miserly. It means we need to spend less than we earn. It’s simple. Yes, it is harder for those with less income than for those with more income. It doesn’t take a genius IQ to figure that part out. What my 35+ years of practice has proven to me is that the folks who save well and invest well do well. The vast majority of folks I meet with financial security have not always earned high incomes. These folks are what are many times referred to as “the millionaire next door.” Books have been written about them (one even with that title). Lots of academic studies have been done on these folks. The result of all those academic studies is clear and simple. The millionaire next door did three things well: 1) they spent less than they earned; 2) they made tough/difficult choices especially during their earning years (they sacrificed at times); 3) they invested well and with patience. Not complicated. Hard? Yes, sometimes it is hard to make difficult choices – or to say no. But not complicated at all.
In my daily work, my clients hear me say this term a lot, “Live today, with an eye toward tomorrow.” I’ve been saying this so long, I don’t remember if this was an original statement or borrowed from someone else. I think I like this statement so well because of my upbringing. All my life I’ve remembered the parable of the talents. I think “Live today with an eye toward tomorrow” is similar to the parable of the talents. My happiest and most well-rounded clients with financial security live this way.
We wish you a Happy New Year, and hope you will continue to progress in the good things and also in eliminating the negative things in your life. Some folks need a coach, advisor or mentor to help them along the way. This coaching and advising is one of the most important skills a financial advisor can possess. If we can help you in this way, please call on us. This is another way we’re different, on purpose.
-by Ben Smith
Registered Principal, RJFS
313 East 10th Ave. • Bowling Green, KY 42101 • Phone: 270-846-2656
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Ben Smith Life Compass Financial is not a registered broker/dealer and is independent of Raymond James Financial Services, Inc. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Raymond James Financial Services Advisors, Inc.
