Don’t Limit Yourself

From the time I was ~6 years old until very recently, I have been competing in one sport or another. If there is a winner and a loser involved in something, I’ll either try it or watch it. Over the last decade or so, I’ve become very fond of the sport of mixed martial arts (MMA). It’s a one-on-one sport combining boxing, wrestling, jiu-jitsu and other grappling styles. Because of the highly technical style of this sport, every single part of an athlete’s body needs to be operating at 100% capacity or defeat is nearly certain. 

Or…so I thought!  Then, I read this inspirational story  (actually, I watched the fight and then read the story a few days later) about a fighter who was born without half of one of his arms. This physical limitation should limit his success in the ring. But, against some very high level competition, he is not only competing but winning on the biggest stages.  It is a remarkable story.

His story is the opposite of so many people that I have met in my life.  (And, many of the people I meet with during individual planning sessions could stand to learn some of the lessons that Nick Newell can provide.)  Nick has an incredible amount of self-belief and an amazing work ethic.  He would not have been able to rise to the level of competition without both.

That’s why some of the people I meet are not where they want to be either in their life or with their personal finances.  They don’t have either the self-belief or have not put in the effort required to be in a great place.  Every week I hear people say “I’m not good with money,” “I don’t really pay attention to my finances,” or “I know with the amount of money I make I should be doing a lot better…” They are either saying that they don’t believe in their ability or that they haven’t really worked at being financially sound.  It doesn’t have to be that way.

There are some very basic principles in managing money. While they are very obvious, they are also very difficult to implement for most of America.  Spend less than you make. Save as much as you can. Don’t take on too much risk. Insure against the big risks.

None of these concepts is revolutionary.  Yet, far too few people do these things! Why? Part of it is simply human behavior, part of it is that we don’t teach these lessons to people early enough and there are a myriad of other reasons why these principles aren’t universally implemented.  Plus, it’s hard!  Instant gratification is so much more gratifying right now…

As a society, we need to do a much better job of teaching and modeling these behaviors for future generations. Every member of Congress should get intensive training on these concepts! And, at the individual level, we need to be more willing to put in the effort required to learn these skills, have the tools to stay on course and replace the negative messages we send ourselves regarding money management with positive messages.

The first step in making sure that you are following these simple rules is to understand where your money goes.  This expense tracker and this financial organizer are great ways to understand where your money goes and where you stand financially.  Printing these out or saving them to your computer so that you can look back at them later and track your progress is a great idea.

Saving for the future is easiest to do at work.  Make sure that your retirement plan contribution is at least at the level where your employer’s maximum matching contribution is met. Ideally, you want to get to the maximum allowable by law ($17,500 this year or $23,000 if you’re over age 50) or at least 15-20% of income (your contribution + match).  You can get there in increments by increasing your contribution by 1-2%/year so that it feels more manageable. Work with your insurance advisors to make sure that your levels of coverage are suitable for your life.  And, invest in a way that is appropriate for your level of risk and your timeline.

Whatever limitations you think you have, you may be right.  Today.  But, it doesn’t have to be that way forever. You can change your outcomes if you change the way you see yourself. Just ask Nick Newell.  If you follow these simple rules, believe in yourself half as much as Nick does and stick with simplicity and put in a little bit of focused effort, you are destined for success.

More like this:

The No-Tracking Budget

The No-Tracking Budget

Putting together a budget is one thing, sticking to it is another ...
Read More
3 Clever Ways to Trick Yourself Into Saving Money

3 Clever Ways to Trick Yourself Into Saving Money

Here are a few tricks I use to keep me on the straight and narrow when I’m tempted to raid ...
Read More
gifts for your love that last a lifetime

5 Ways To Help Those Most Impacted By COVID-19

With COVID-19 sending millions to work-from-home and forcing businesses to temporarily shut their doors, nearly everyone is experiencing dramatic changes ...
Read More

Subscribe

Be the first to know when new resources are published.