Investment Strategies – Short Term vs. Long Term Gains
"Investing is the active redirection of resources: from being consumed today, to creating benefits in the future" - Wikipedia
Now if we take that statement out of the context of money (which I know most of you thought I was going to tell you how to be a millionaire in the market... I DARE NOT!!!), and put it in terms of ourselves, what does this mean?
Simply put, CHANGE and PATIENCE.
A true "investment" in ourselves normally doesn't manifest in immediate gratification. It's not some "ah-ha" moment that they like to portray in TV.(You know like when House talks to his friend and in the convo, he knows what's wrong w/ the patient? Why doesn't he just have the convo at the beginning of the show? - I digress) A true investment is a series of several small changes that eventually affects your life and turns you in a different direction. I like to call these small changes "short term gains" because while they do attribute to your over all success, they aren't necessarily the ultimate goal.
Long term gains are what we eventually receive when the short term gains add up and manifest into real change; lifestyle changes if you will. You can equate long term gains to the ultimate goal you're trying to achieve in order to change your life to for the better.. Unfortunately, often during the process, we sometimes get sidetracked, or "caught up" in the short term gains that we become complacent or even content. For example, we'll start a workout regimine and lose a little bit of weight, and enjoy the results, but then turn back around to old habits. We forget that long term, we planned to live a healthier lifestyle. This was but a result of that decision. A lot of us, due to social influence, equate healthy with thin, focusing on the external. We think we've already arrived at our destination, because we look a certain way, when we've only just begun our jouney. Same thing can be attributed to money. For instance, if we've paid off all of our credit cards, we haven't really made a life altering change. We've simply "fueled the beast" all over again if we havent changed our mentality about debt in general. If no plan has been devised to ensure that we don't get into the same patterns, routines, and habits, then there will be no long term realization and we will be in a never-ending cycle.
Let's look at a couple of examples of very simple plans..
Example 1: Living Debt Free:
Short term gains could consist of a strategy of paying off your credit cards, creating a budget that would allow for you to save and selling things you don't necessarily need in order to pay off debt. While these things would create change in your life, it's not necessarily life altering. It's not until we change our lives in a 180 degree manner that we're not able to go back to our old habits.
A long term gain would be the practice of paying cash for everything because you no longer had to rely on credit cards. This is a direct result of the short term accomplishments that you achieved previously and dedication to not going back to a debt-filled lifestyle.
Example 2: Being Healthy
Short term gains could consist of small changes in what you decided to/not to eat, an exercise plan, deletion of bad habits(eating while watching TV, bored, or emotional) and weightloss.
Long term gains could consist of the dedication to that healthier lifestyle, and a longer life.
The main message of this entry could have been summed up simply with the definition of "investment." How are you "reallocating and redirecting your resources to profit you in the future"? What are some of your "Investment Strategies"? Have you devised a plan to make your life profitable in the future?
Sacrifice?…. Who Me?
So many of us have an idealistic view of who we should be. This comes from being asked as a child, "What do you want to be when you grow up?" We'd always like to think we're works in progress or haven't attained our full potential. The question is:
"What are you willing to sacrifice to get to your full potential and realize that idealistic view you have of yourself?"
During the journey of "growing up" we attach ourselves to worldly things and unhealthy people. We gain "weight" so to speak. Those people and things become more of a distraction or limitations from keeping us from our true identities. We become complacent and content where we are in our lives rather than continue to strive and fulfill our destinies, if you will. We begin to look around and put worth and value on our worldly possessions rather than our ability to set a goal and achieve it. Once we're able to obtain "things" at a consistent rate, we feel we've "made it".
Relationships are also another path that can lead to personal destruction. We are so enthralled with trying to "fit in" we lose our true identities in the multitude of vast relationships that we accrue. We have to be a certain way with a certain group of friends, and another way w/ others to where when we look in the mirror, we don't recognize the person looking back.
Do you know who you are anymore?
So I ask again, "What are you willing to sacrifice?" Be real with yourself. Who do you want to be? Are you valuing the things you have more than that person? Are you caught in that facade of a relationship that you think is real?
I CHALLENGE YOU to give up ONE thing that you really don't need as a downpayment to making yourself a better person. It can be something as small as a CD that you don't listen to anymore or something as large as not speaking to someone that you feel is holding you back. Just sever yourself from whatever it is that is clogging your "arteries of growth".
Small changes within oneself can cause a domino effect. You have to start somewhere right? Each change you make, makes the next one easier to bear. Keep your eyes on the prize. Don't become content. "Be who you wanted to be when you grew up."
What Ever Happened To Our Optimism?
I was wondering what to write as my first post.. Then on my morning run, it came to me.
"What ever happened to our optimism?"
What I mean by that is, when we were children we had all the optimism in the world. No one could tell us that superheroes didn't exist, that the sky couldn't be green, that you couldn't be the President, etc. What happened to that? Some of you might say "Life" happened. But could you also say that it was the point of view that you looked at your experiences? We had negative experiences as children too. It probably wasn't until we started doing things that we shouldn't have done that those negative experiences started to limit our imaginations.? Why do we place so much emphasis on the negative? Why do we let what happens to others serve as the premise on what we can do within OUR lives? Maybe they made a wrong step along the way that we wouldn't make. Who knows, but if we don't try we are defined by our limtations, not our accomplishments.
TODAY (whatever day you visit this post) I CHALLENGE YOU to "take back your optimism." Have a day w/ NO EXCUSES.. This will be the most rewarding day of your new life. I guarantee it. While the victory is sweet, it's normally the journey that you appreciate. Think about all the champions in our lifetimes in sports. When they win, what do they say? "It was worth it.. All of the practice, all of the hard times... It was worth it." Maybe not while you're on it, but when you get to your destination and look back, that's when you place value on what you've accomplished.
Now that is a LOT harder than it sounds. If you've always said you wanted to do something, no matter how large or how small, if you have the means, DO IT!! Take a stand, reclaim what's yours..
Quote: "Something easily obtained is not truly appreciated" - Rashard Anthony Walls
I too am not above this mantra. That's the reason I'm writing to you now. I always said I wanted to write and I'm using this blog as my vessel to motivate myself and others. I think the world can be a better place, but it starts within oneself to make a conscious change. Please show that you've gained something from this post to help movitvate me to make more by sharing this link with others and registering to leave comments. I'd love it even more if you left a comment explaining what your goals are and what you've accomplished whether motivated by this post or just to share. Even if you haven't accomplished your goals, but have them, putting it in writing will sometimes give us that extra nudge we need to really do something.