I have a new subscriber. You can subscribe in the box in the column to the right of the article.
This person fascinates me. He is an 18-year-old Australian who possesses wisdom in two areas – fitness and finance. There is another brilliant young person blogging here. The Idea Bucket. There is hope for the future.
One of my new follower’s blog articles deals with motivation and discipline. It is worth the trouble to read it. The main thought – “The difference between a loser and a champion is that a loser relies on motivation, and a champion relies on discipline.” Possibly a little overstated but a fine place to start the discussion.
“Discipline is doing what you need to do regardless of how you feel about it. Tired? No motivation?” Exactly so! I know a Karate instructor who says exactly the same thing. His idea is, “I don’t think I asked you if you wanted to do that.”
There is another useful article here. Achievable Objectives.
I have seldom seen this level of organization in a person so young, but there are pieces still missing. In his case probably because they have not come up yet.
Acquiring financial assets is a good idea and working toward financial independence is a key long term idea. Some of the other pieces that support the long goal will include:
- Dealing with external risk – There are things that could happen and some are ones you can manage but not control. Accidents and illness are one such problem. Learn about insuring effectively. On the investment side, there are ways to minimize risk there too. Most are common sense.
- Optimizing resources – Investing well is a good thing and some investments must be non-financial. Education for example. Some asset types pay back more than they cost by a wide margin. The annual dividend to become a dentist is quite large related to its price.
- Using time effectively matters. You cannot do everything at once so learn how to prioritize. This where discipline pays its biggest dividend. The rule will become, “You can do anything, but you cannot do everything.”
- Get help. Training by yourself is much less productive than training with a buddy. In the financial area, an advisor or other confidante will help. They can be the project conscience and they can notice or find information that is outside your spectrum of knowledge. If you spend all your time trying to keep up, you will have too little time left for implementation.
Financial independence is a worthy goal. Discover how the task is designed and then learn how to implement the steps that will help to achieve it. Pay attention to the things that may sidetrack the pursuit.
The most effective step other than to be disciplined about it, is start early.
Don Shaughnessy is a retired partner in an international public accounting firm and is presently with The Protectors Group, a large personal insurance, employee benefits and investment agency in Peterborough Ontario.