I realized over the years that our wants are unlimited and will always exceed our income.
No matter how much money you make, be it $100,000, or ten million, without a system your insatiable wants will always outpace out your income.
No matter how much money you make, be it $100,000, or ten million, without a system your insatiable wants will always outpace out your income.
You think if you double or triple your income you’ll be happy, you’ll have enough? Unless you keep your expenses the same, which most us of will not do, then you won’t have enough.
As you can imagine, in the investing industry, where you rub shoulders with multi-multi-millionaires and billionaires, it is very easy to let your internal compass get out whack.
Over the years when our (mainly my) impulses were getting the worst of us, my wife and I would go to the budget and see what we’d have to give up if were to opt for a new car or a bigger house.
We realized that material things – houses and cars, etc. – were on the lower end of our priority list.
We found that four categories were important to us: health, experiences, time, and education.
We found that four categories were important to us: health, experiences, time, and education.
Without health nothing else matters.
A personal trainer may look like an unnecessary luxury, but without him every attempt I have made to work out has failed.
Food fits into this category as well. We simply don’t pay attention to the price of tomatoes or meat.
A personal trainer may look like an unnecessary luxury, but without him every attempt I have made to work out has failed.
Food fits into this category as well. We simply don’t pay attention to the price of tomatoes or meat.
Education: On top of paying for the education of our kids and their after-school activities, we put no limits on how much money they (and we) spend on books.
The same applies to our own education, be it for seminars or coaches.
The same applies to our own education, be it for seminars or coaches.
Experiences: As my kids are growing up I have become acutely aware that we’ll have only a limited time with them.
Family vacations, skiing in the winter, and day trips are very important to us. Whenever I travel for business I always try to take a family member with me.
Family vacations, skiing in the winter, and day trips are very important to us. Whenever I travel for business I always try to take a family member with me.
And then there is time.
Time is the most finite asset we have. My thinking on this topic has changed over the last five years.
I realized as I got older that money buys time.
Time is the most finite asset we have. My thinking on this topic has changed over the last five years.
I realized as I got older that money buys time.
The time I save by not doing low-value tasks (e.g. going through my inbox, replying to emails that my assistant can respond to, scheduling calls, making doctor’s appointments) I can spend doing research, talking to clients, and yes, hanging out with family and friends.
Happiness is reality less expectations. When you control your budget you control your expectations.
When you constantly spend more money than you earn, after you chew through your savings (if you ever had any), then you’re getting deeper into debt.
When you constantly spend more money than you earn, after you chew through your savings (if you ever had any), then you’re getting deeper into debt.
To maximize health, education, experiences, and time and still live within our means, we had to give up things that were less important to us – a huge house and brand new cars.
