philosophical
financial goals, and living your life anyway
WSA adsense code -->Having taken up the oboe, naturally I spend some time hanging out on music student forums. From time to time, someone will post a thread asking whether they could become a professional musician. It seems to be the general consensus that with enough work and a suitable teacher, anyone sufficiently dedicated could get to the standard required for music college. In case you’re interested I’d reckon something in the region of 2,000 to 3,000 hours of proper structured practice would be required.
But it got me thinking about whether anyone could become rich. I’d say it’s the general consensus that with sufficient drive and focus, anyone sufficiently dedicated who is reading this blog could accumulate a million pounds. You’d need to put the power of compound earnings to work and so it couldn’t be done overnight. But if it’s what you really want to do, it’s not that hard - simply spend a sufficient amount less than you earn, invest the remainder and keep going for at least 10 years.
Really, most things are within the reach of most people, if they set them up as their only goal. The trick is in trying to balance competing goals. I want to travel, and have a nice house, and not worry about money on a day to day level, and wear decent clothes and save and invest a good proportion of my income. I don’t have the single-minded focus needed to accumulate a large pile of money, or pay off my mortgage within a few years.
If you have a goal that’s going to take more than 2 years to reach, I think that it’s extremely difficult to focus solely on it for the duration. To give yourself the best chance you need to make it as automatic as possible, and to allow yourself other pleasures in the mean time. There’s only so long that you can put the rest of your life on hold.
It’s much better to acknowledge these sorts of limitations, than pretend that they don’t exist. If you don’t then you won’t stay on the wagon. Instead be realistic. Cut back on things that you don’t care about, invest energy in things that make you happy. Keep your eyes on your goal, but allow other good things into your peripheral vision.
Similar Posts:
If you like what you're reading, why not leave a comment below, subscribe to my feed, or check out some of my best posts.
Tags: Discussion
9 comments for “financial goals, and living your life anyway”
Post a comment
subscribe
use a reader
Really, most things are within the reach of most people, if they set them up as their only goal. The trick is in trying to balance competing goals. I want to travel, and have a nice house, and not worry about money on a day to day level, and wear decent clothes and save and invest a good proportion of my income.
LOL. you know this is about the most truth I have ever seen in a financial article.
I think it may be one of my favorites I have ever read. (And that’s saying a LOT.)
Your point about automating is priceless. It would be great to look at how you can use habits to accumulate wealth. Especially when you automate it!
I love the post today. I enjoy reading the financial blogs, but sometimes I read the extremes people are going to for the sake of frugality and just think…no thanks. Then again, I’m doing okay financially and haven’t had to face some of the hardships that can necessitate extreme frugality.
I particularly like the point that everyday financial comfort is a goal too, and that it needs to be balanced with all of those medium/long term financial goals. My husband and I have our share financial goals that we plan on achieving, but we also make it a point not to miss out on enjoying our lives now.
Brilliant post! I think everyday financial comfort is a form of richness, not that you could go out and blow £20K but if you have a year’s income, saving towards retirement, have a savings account so you can have a yearly holiday and enjoy things like a music lesson,then that’s pretty good going!
it’s definitely about balancing out the competing interests… and i think it’s totally doable, if you think a bit imaginatively.
Good Read! Definitely agree that most people have the potential to achieve their goals. It’s the self-discipline and execution that’s missing.
I found what works best for me is to set short-term, achievable goals that further my long term the goal. Whenever I finish with my short-term goal, I reward myself a little (a nice meal out, a pedicure). It gives me incentive to keep going and something to look forward to at the end of each milestone.