One of the best aspects of being a Yakezie member and personal finance blogger is building relationships with other bloggers and readers. Recently, more than a few bloggers have asked me why I take on certain freelance jobs and basically, why I blog when the money is so insignificant compared to my other sources of income. In fact, here’s a direct quote from Paula at Afford Anything.
“What motivates you to do this, given that you already have such a great job?”
I recently tackled that question on my site and I know many of you ask yourselves that question as well. Some version of this question, “Why am I participating in this marginally lucrative and time eating hobby?” rattles around in our collective brains at some point or another, I am certain.
Today, I am going to depart from the guarded stance I take on my site and disclose some of my past career and financial mistakes. This article offers insights into how wisdom grows from failures and mistakes. My goal is to provide perspective to those slow growers and motivation to continue in spite of obstacles.
A TIME I QUIT TOO SOON
One of my first professional jobs in my 20’s was in real estate sales. I was working during a horrible housing market with 12% mortgage loan rates. In spite of the poor climate, I managed to make a sale a month during my second year. I networked, went to educational seminars, went door-to-door passing out my “real estate newsletter”, and networked some more.
A sale per month was excellent progress for year two in the unfriendly market. I was disappointed in my progress and didn’t realize that I was doing quite well for a relative newbie. I was disappointed that my sales and income weren’t higher. I decided that I was bored, needed more stimulation, and decided to do something different. Although I’m not sure if that decision was based on boredom or disappointment.
Had I continued for a few more years as the market rebounded, and my clientele grew even more, I am convinced my sales and income would have soared. I quit too soon to determine my full potential in that job! The decision to quit after two years probably cost me thousands of dollars long term because I was impatient and self critical.
A TIME I WAS TOO CONSERVATIVE
Again, in my 20’s, I inherited some money from a relative. That nest egg ignited my interest in investing and off I went to a stock broker. Fortunately, I met a decent stock broker who put up with my endless questions. He even let me borrow his company’s educational materials to teach myself investing fundamentals.
In spite of my early investing exposure and information, I was afraid to invest in stocks. My parents were born in the 1920’s and lessons from the great depression were in my DNA. My grandfather was out of work for 6 years while my grandmother sold odds and ends door to door. The stories of men losing their fortunes in the stock market crash of 1929 rattled around in my head. I feared investing in stocks because all I knew was that you could lose all your money and become destitute!
Consequently, I invested my inherited funds in individual bonds, a closed end bond fund, and a GNMA government mortgage backed securities fund. Now these weren’t bad investments. They were merely missing the asset class of stocks.
Over the past century or so stocks have returned about 9% and bonds about 5% annually. So in my 20s, if I had invested 50% of my portfolio in stocks, I would have increased my lifetime wealth substantially. Luckily, by my 30’s, as I continued to study investing, I realized that investing in a more diversified portfolio, including stocks would substantially increase my returns. And, with experience, I became more comfortable with the risk and volatility of stock market investing. I learned about the historical performance of stocks and bonds and decided I could handle some stock market exposure.
By being too fearful and conservative in my 20’s I partially missed out on the time value of compounded wealth. As Albert Einstein is reported to have said, “The greatest wonder of the universe is compound interest.”
THE TAKEAWAY
I take low paying freelance jobs because I am building for the future. My goal is to grow my blog and web presence in order to educate others and maximize my on line income. If you look at any of the biggest sites, you’ll notice that time is instrumental to their success. The biggest mistake one can make is to stop doing something because nothing is happening. If growth or rewards aren’t coming quickly enough, maybe you haven’t been at it long enough!
I remember an interview with actor Craig T. Nelson, who toiled in the acting field for decades before getting his big break in the television series, Coach. Nelson was in his 40’s when he made it big!
Whenever you get down and worry that your entrepreneurial endeavor isn’t growing quickly enough remember some of the greatest success stories in any field and realize that there’s no substitute for persistence and discipline.
How long did it take to achieve your successes?
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It’s 2015 and the bull market continues. Make a decision to be wealthy by taking control of your finances!
image credit; elycefelize
My friend was working for a company and kept telling me that the stock price was way too low. I didn’t listen and sure enough the stock went up like 10x over the period of 18 months. Could have done really well. But, I was scared for having gone overborad a few years back on another ‘can’t miss opportunity’ that ended up wiping out the entire investment. Coulda, woulda, shoulda :)
@Money, It’s so easy to focus on the past, much harder to have a “short memory.” Besides, you could have ridden that purchase up 10x and then back down again without selling!
I don’t trade stocks as often as I used to, but I used to keep a list of the stocks I was interested in, but never bought and I checked those stocks every six months. About half of the stocks were up over 20% but the other half was down almost the same amount. Maybe that’s why I stopped trading stocks =)
Very well put. Your experience is not unique. Over the years I’ve moved my personal and professional portfolio to an asset allocation informed indexed approach. No muss, no fuss and don’t have to worry about emotions.
Many of us entered the blogging scene just a few years ago; we watch the success of others who have been at it since 2004 or 2005 and get frustrated. Your point about persistence, in what ever aspect of life, is well taken. Many duck out of blogging too early because they don’t achieve what they perceive as the immediate success of others. Reminds me of the people who cash in their stocks whenever the market dips.
I have been in the arts for years and you never do it for the money. Money comes but it’s the love of what you do that is a greater force. I think some bloggers are artists to a degree. You my friend are an artist.
I’ve noticed that many people these days don’t have much patience. It could be due to the instant-gratification that technology delivers, or the expectation that if overnight success can happen to someone else, why not to them as well. It’s true that patience is a virtue, but it’s also something that can be invaluable to success in all phases of life. I’m no exception to that rule, but I’ve learned to overcome my “patience deficiency” after my first failed attempt at blogging. Of course, the first time I didn’t have anyone from this group pointing me in the right direction or encouraging me to stick with it :-)
I’m still trying to achieve the success I desire, but I work hard at it everyday. I believe strongly in diversifying where your income comes from, just like diversifying investments. That’s why I blog and freelance online!
Success is very subjective. One person’s success is another person’s mediocrity. I’m learning to stop beating myself up over mediocrity, to let go, to accept the way things are. It has helped make me happier and less stressed.
Success is just being happy to me.
Well said Sam. We always worry about money and sometimes value our success through those blinders… Happiness is ultimate success.
You’ve hit the nail on the head on topics I discuss often, whether with friends or in my content. Anything you do in life will require hard work, drive, time, consistance, patience and risk. If you’re risk averse, you will many times miss the boat!
Obviously risk tolerance has to be adjusted given someone’s risk factors, but not taking any risk or simply failing to act and take some sort of risk will leave someone right where they started. Maybe even worse due to inflation and not taking the opportunity to have your money work for you.
It depends on which success you’re referring to. I think people should aim for successes of all sizes: finishing college, starting a business, getting a grad degree, paying off debt. For me, I try to set a goal to accomplish one of these things and feel successful once I do. So I guess that answers your question in a way. I don’t feel like I’m waiting for success – I feel like I have the opportunity to achieve success in small areas. That keeps me motivated.
@Melissa, Very apt comment. There are more multitudes who sell stocks at the bottom and buy at the top. Not the best strategy!
@Jai-I couldn’t agree more. As a consumer and arts lover, the comparison is perfect. In fact, as I enter into the classroom to teach my college Investments class, I consider it a “performance” as well as an educational endeavor.
@Eric, I’m glad you “tried again.” The greatest successes are those wth the most failures as well.
@College- You are one of the hardest working bloggers I know, and I’m certain your success is and will continue to grow
@Taline-Taking risks is underrated. Without calculated risk taking on a regular basis, in every area of life, it’s quite difficult to succeed.
@Financial Samurai-So glad you added that comment. In a forum such as this one, it’s easy to get distracted by others and forget your own values and priorities, thanks for the reminder.
@Tim-Another superb remark which follows upon Sam’s (FS) comment, define your successes and goals for yourself.
In my 20’s, the dot com boom was happening. I so wanted to get in on it, but I didn’t know how. In 2000, right before the bust, I was hired by a “start-up” company. Exactly one-year later, I was let go when the company folded. At that point, I turned to substitute teaching. Schools were drafting teachers right and left – but did I jump at the chance of a job. Nope. 7 years later I realized I needed to get my credential and get serious. Again missing out on the “hiring boom.” I realized, for the second time, I was really bad at timing economic peaks and valleys. I now just do what I love and realize that if I hit on a hot topic at an opportune time, then great, if not, well at least I’m enjoying what I’m doing. :)
@Little House-They don’t call it “learning from experience” for nothing. If we didn’t make any mistakes, we wouldn’t appreciate our successes, nor would we grow and develop as people. You are clearly doing what makes you happy, and that’s what really matters.
Hey Babs, I think it’s great to build a foundation like you’re doing. Many people forget that “immediate payback” is not the only reason to blog (although it’s nice). Creating a brand, helping others, enjoying what you are doing, and laying the foundation for future returns are strong reasons as well!
Hi Geoff, Thanks for your kind comments, it’s easier said than done:)
Wise words Barb, we all need to remember we are a “brand” and not just a blog. And a great brand takes time to build.
Excellent post. It is so true many give up too soon. It is so easy to do and I know with many in my generation everyone expects it now and if they are not immediately successful they become unhappy.
I think I have been fortunate with my bloggy pursuits and am happy with my success so for. Of course I want to grow it more, but I do it because I love it. I started blogging for me and will continue to blog because I have met so many wonderful people through it and I love the relationships I have with my readers.
I think you are so right to be laying the foundations, educating yourself and being aware that things don’t happen overnight, it all takes time. Thanks for sharing your thoughts.
10 Years – That’s the magic number of years it takes according to Malcolm Gladwell in his book ‘Outliers’. If this is true, we’ll all be dominating new media by 2020. Never stop learning, great message Barbara.
Agreed on patience and persistence, Barb. I actually have a post scheduled on patience and its value, as I think its underrated. As for persistence, I think its one of the most most important factors in achieving success. It can trump talent and luck in so many cases.
I’ll have to look for the patience article. It’s one of the toughest habits to practice. I need reminders every day!
@Dr. Dean-Branding is so important, and takes time and consistency. After all, look at the the Geico lizard… present everywhere.
@Kylie-You are an example of outstanding success…..fast. Come on, a book!!! :)
@Hunter- I loved that book, Gladwell is amazing. That 10 year rule is one to remember for all of us! Yes….. bring on 2020 :).
Success for me was achieving financial freedom. It changed my life. From start to accomplishment, it took close to 7 years. My goal was to achieve freedom by 40, instead I beat my own goal. Since then, my goals have broadened and new ones are identified. I keep replacing goals accomplished with new ones. I will never be done!
Patience, or should I say a lack of it, is my huge weakness. Whenever I get impatient, I make mistakes, bad decision and fail in the end. Whenever, I try being patient I achieve so much more than I expect. For me success is defined by the end results. However, the process of getting to those results is much more gratifying. It sounds odd, but that’s how it is for me.
Good thoughts, Barb! Patience is hard to practice when investing, especially when we see so much attention devoted to momentum and trend investing. We might all have a mark or two from having chased the wrong car. I know I do.
Great article Barb! Sometimes the greatest lessons in life come from the journey along the way to success and often some of our fondest memories. I definitely agree that one of the greatest things about the Yakezie community is building relationships with other bloggers… it’s a great experience and it’s what makes blogging a lot more fun :)
@Krantcents-I couldn’t agree more. It always seems as though there are more bridges to cross and things to learn.
@Aloysa-Focusing on the process ups your life enjoyment. Only appreciate the end result, then it’s here and next it’s gone. The process is the explorations journey.
@101-You gotta turn off that CNBC once in awhile, or you will go insane!! And BTW, no one knows the future :).
@World-One never knows what is around the corner!
This reminds me of a quote by Ray Kroc…Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent.
Personally, I have matured a lot in the last 2 years, and especially since I began blogging. It’s a great exercise but it’s just a small part of what I do. But that small part has affected every other aspect of my life positively (except for the fact that I sometimes get lost in time reading hundreds of blogs and thousands of comments!)
Love that quote!
So true! However, hindsight is always 20/20. We all like to think we were making the right decision when we made it.
@American Debt-So well put. Thanks for bringing up the Ray Kroc comment. For those unaward he founded MacDonalds after the age of 50. He is an inspiration to me personally.
@Simple Rich-If we knew the outcome of every decision beforehand, we’d all be rich and famous!
I am new to this site, and am really impressed. I was referred here from somebody on Twitter. I found this to be a great article, and can relate. I am 25, and have hopes of financial success. I consistently try to find opportunities that will bring that financial success, as well as make me happy. I have been too aggressive before, specifically with trying to day trade stocks. I about doubled my money the first year, but then the next year I lost. I did do my research, but that was a bit too aggressive for me. Patience is the key right now. I want to have everything now, but with patience I know things will work out. I look forward to learning a lot from all of you.
The way I see it, when you make a mistake you have 2 choices – to repeat that mistake over and over again or to learn from it and do better next time. Obviously the second option will get you farther in life.
Hi Jennifer, Well put. I try not to make the same mistake twice, although I admit, I’m not always successful.
Wise words. I have looked back a couple of times to regret opportunities I passed by. The biggest of which was in the early 90s when I was offered two lots in a subdivision outside of Austin…for $900 for both of them. This was before Dell went crazy, and Austin began to grow so much. I had asked a older friend who I thought would give me wise counsel, and declined the offer. Lets just say, that by the time we actually bought a lot in that same subdivision a decade later, I paid $7,000 for just one lot.
My take away? Even though at the time I didn’t have much income, I should have approached my father or older brother to seek out a loan (I was between jobs, actually between continents).
The one time I did make a good decision was when I bought Apple stock after buying our first Apple product (which was an iPod Shuffle…I got in at $64, and have done well with those shares).
Nice article. Like you, I have some experience in real estate too.
I started buying fixer upper houses and turning them into rental properties about 10 years ago. I started doing it in my spare time while I worked a regular 9 to 5:00 job.
Hind site being 100%, I wish I had started doing it earlier. But, sometimes we don’t know what we really enjoy doing until we’ve been around the block a few times.
@Thad, You know you are a real investor if you have a loss or two under your belt. Everyone who has gone into investing has a loss here or there, the important thing is to work towards keeping the gains greater than the losses.
@Carve-Actually, it’s a gift to find what you enjoy at any age. Now is an awesome time to buy real estate with low mortgage rates and lots of inventory. good luck.
Thanks for such an encouraging post. I have been working on my patience a lot lately. There are many areas of my life where I just need to enjoy the moment. It is hard though. Bad habits I guess but I am working on it.
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This is a great post. I haven’t really reached much success in my profession, being that I haven’t even finished school yet. I’m glad I didn’t give up on school because it wasn’t giving me any returns – I was going to give up after my diploma, but I kept going and I’ll have my degree soon. Once I have it, I’ll have a lot more marketability for my career, and I’ll have a higher earning power.
Thanks for sharing those two stories. It’s important not to quit too soon, in my opinion, because we never know what’s just around the corner ….
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Good thoughts, Barb. We all need to start somewhere, and to travel enough down the path to at least see where it’s leading.
This is very profound Barb. Turtle indeed wins the race.
Barbara,
Thank you for inspiring me to write my current article, “The Secret Key to Success”
Great post Barb!
I deal with my lack of patience everyday and have quit several opportunities in the past because I didn’t see results quick enough. This also includes my struggle to lose weight. I always tell the doctors that I will quit if I do not see results. I finally changed that way of thinking last year and after 7 months of following a new eating plan I finally lost 30 pounds.
One of my favourite poems is called “The Don’t Quit Poem” and the last line says “It’s when things seem worst that you must not quit”.
[…] Mind you, I gradually began to let go of the fear that I was unqualified and inept. Over time, with hard work and discipline I got promoted and did very well in mid level management at the […]