Fresh off a two week vacation in Peru, I was reminded of two keys to a successful life…. balance and patience. As a true workaholic, it sometimes takes dragging me thousands of miles from home to to remember the true value of life; and it’s not about who acquires the most money. Clearly, money matters, but so do other aspects of life. Money is the method to achieve some goals, but not all. (It’s tough to travel without any cash :) .)
Now how is this article going to tie together investing, travel, and wealth?
Patience and Investing
An inspiring hike around one of the most amazing sites in the world, Machu Picchu gave new meaning to the word patience. It took close to 150 years to build this historic tribute to the Inca culture. The lessons embedded in this culture are important to us, centuries later.
Are you devastated if you don’t get a remarkable investment return one year?
Over the last hundred years or so, the U.S. stock market averaged about 9 percent per year. Yet during the past fifteen years the S & P 500 averaged 4.75 percent (according to Morningstar).
Would there be a Machu Picchu today if the Incas looked at their progress after 15 years and said, “This stinks, we aren’t finished yet, we quit”? Yet this is exactly what many investors did after the bear market of 2008-9. To those investors who sold and didn’t know when to get back in, they missed a great run up in stock prices over the subsequent years.
Let’s carry the example a bit further. How many bloggers quit after a year with the lament that their traffic and income is insufficient? Ramit Sethi of I Will Teach You to be Rich, admitted at a Fincon presentation that his website was nowhere at the three year mark.
Patience with oneself and one’s endeavors is a secret to success. Yet our culture thrives on instant gratification. That mentality leads to dissatisfaction. I’ve invested for decades through up and down markets. There were years when the market tanked and so did our investable assets. Although those were the times when I bit the bullet and added more to our investments. History demonstrates the miracle of compounding; the longer you continue to invest, through up and down markets the more your wealth grows. Many new businesses fail, not because the businesses are inherently poor, but because the owners’ don’t plan well enough, store enough capital, and hang in there during the slow initial stages.
RESOURCES FOR A BETTER LIFE
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Negotiate A Severance Package: Don’t quit your job, get laid off and negotiate a severance package instead. Negotiating a severance enabled me to receive six years worth of living expenses from a company I dedicated 11 years of my life to. If I had quit, I wouldn’t get any severance, deferred compensation, medical benefits, job assistance training or unemployment benefits and neither will you. I believe so strongly in the message of never quitting that I spent a couple years writing this 100-page book entitled, “How To Engineer Your Layoff: Make A Small Fortune By Saying Goodbye.” I’m absolutely certain this book will help you recognize your rights as an employee and break free from the corporate grind to do something you truly want to do.
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I want to be financially stable. To be able to do whatever I want. That’s my definition of wealth and success at the moment.
Nice post Barb! I think wealth is relative, but would say in general that hard work is needed to attain it – as well as patience. For our family, we really value being able to travel and provide our kids with opportunities to grow in a variety of ways.
My definition of wealth and success is being able to do what I love and want.
Nice write-up, Barbara. It’s always helpful to hear others preach patience as it serves as a healthy reminder. I mean, for me, I know to be patient but oftentimes it’s easy to lose sight of this objective. Hearing it from someone else every so often helps to keep things in perspective.
Great post Barb and love your pics. I want to go to Machu Picchu one day and spend time reflecting on life in the mountains. I had similar feelings as you when I traveled around the Yucatan to see Mayan ruins. Life changing and puts things in a whole new perspective.
I’m glad you got to spend time with your family at such an incredible place. Priceless wealth indeed!
@Savvy, Financial stability must come first. Without that, there is way too much stress and discomfort.
@Frugal, I am a HUGE proponent of hard work, yet sometimes feel it’s so “cliche” as who doesn’t know it? But I rationalize, it’s one thing to understand the importance of hard work and another to practice it.
@Mr. Utopia-As one who is at the other end of saving and investing (staring retirement in the face :) ) I can say with ultimate certainty that nothing good comes without a dose of patience. That said, I too like to hear repeated things I already know; reminders never hurt. @Untemplater, the Mayan Ruins are so beautiful and definitely take you out of the “day to day” minutia. I am incredibly grateful to have taken this spectacular trip with my family.
I would consider myself “rich” if I was able to spend more time with my family than working.
To me being rich is being free and having time to do what I enjoy without having to think about money. I am not a workaholic, just trying to have enough to live life on my own terms. Living in Guatemala I can relate to what you saw in Peru, most people in my village are very happy with much less than I have.
@AYoungPro-Agreed. Unfortunately many folks squander the years when their children are young, only to regret it later. Those times are so precious.
@Pauline-I didn’t realize you were living in Guatemala. It’s such a different life, living in a lesser developed country.
I have often hear the deathbed lament of “I wish I spent more time with family” to heart many years ago. I love saving and investing, but it is not everything I do. The best things or most memorable ones had very little to do with money. Being rich provides more choices.
Nice post. I would consider myself “rich” or wealthy if I had the money to pay for current and future financial needs, and the time and health to spend enjoying the company of my family and closest friends. To the extent that we have more money, all other things being equal, it can only help us live healthier lives with more time for relationships.
Totally agree, too many people define “wealth” according to someone else’s dreams. As for me, wealth is spending time with (and teaching, hopefully) my kids while they are still in the home and being able to volunteer my time to causes I believe in without concern about providing for my family.
@Krantc-Well put, money gives you things money can buy; freedom, choices, things, expensive experiences. One can’t put a price on time with friends and family, in the end, that’s what we remember.
@Squirrelers-So true. I like how you tied in the tradeoff of money for time. Although it doesn’t always work that way. Sometimes more money (earning it) gives you less time.
@Fipilgrim-You never get the time back as your kids are growing up. I am so happy I prioritized spending more time with Jr. as she was growing up.
Very nice, Barb; more importantly, very wise! I believe that the only purpose of money is nourish your life and if it is not doing that it is not worth it. This way, the important question, as you pointed out, becomes what nourishes your life. We worked it out for ourselves and are working towards being able to have it: in five years time I wouldn’t have to be employed if I don’t want to be and we can travel, live places and explore and the main thing – I could write (well, meaning I could write things different from academic articles and blogs).
My priority is to avoid poverty especially when I am elderly. I need to be financially independent and to work harder at being healthy to avoid diseases.
I am still not at the 1 year mark of my blog and I can see how people give up around the 1 year mark. I need to stick to my financial plans, my healthy living plans and my blogging plans to keep on track and to get what I want out of life instead of taking what life hands me.
I think taking the Yakezie challenge in September would be a good step to keep me on the right path.
I can’t hadn’t bothered to join the Yakezie challenge until January. I had read all of the details but I didn’t see that one.
That should have said – I didn’t bother to read all the details of the challenge or I would have realized that I can’t join until January. I will blame some nasty seasonal allergies for the brain fog.
@Maria, I love the word “nourish”, so descriptive. It’s always a challenge to extract oneself from the norms of society and define what matters to oneself. It will be impressive to reach a self sufficiency goal in 5 years.
@Jane-Very wise to look to the future. With aging parents I am well aware how important financial security is.
I’ve never been much for spending on experiences. While I can remember a conversation from months ago, I can’t remember most of my last vacation.
While I may not like an individual day’s work or an individual job, I enjoy WORKING. So I’m perfectly fine with working a lot, working hard, and just living each day as it comes.
HI Edward, Your remarks are a great example of how each of us have our own personal goals and aspirations. Thanks for weighing in.
Great words of wisdom. Stay the course.
Outside of funding our goals for financial freedom, there are few things I spend good money on as awesome vacations with my family that will result in great experiences together. I can totally identify with your views here.
I really like hearing other people’s definition of wealth, so thank you for sharing. Usually, I view wealth more narrowly as a finance concept. However, it terms of defining a “wealthy life”, I would use a broader approach; one including love, family, and happiness. To me, travel is a luxury.
Great post.
Its all about having the money to do what makes you happy. In my case is geographical freedom.