Stack Assets & Enjoy Life
What do you think of when you hear the word "retirement"?
The concept of retirement means different things to different people. Some might imagine it as being 67 years old and relaxing on the beach. Others might view it as something profoundly boring. Maybe you perceive retirement as a silly concept and would prefer to live your youth to the fullest. This viewpoint makes sense, especially considering you're generally less mobile when you're older. At 67, you aren't always capable of doing everything you enjoy now.
This perspective presents a considerable dilemma that many people face throughout their lives. We all understand the importance of planning for our future success. However, many of us want to live in the present moment. Why wait to enjoy a moment in the future that might never come? You've probably heard stories of people retiring at the old age of 63, 65, or 67, only to pass away a few years later, after spending their entire lives saving up money for that blissful moment of unrestricted enjoyment. This reality doesn't exactly motivate long-term investment.
However, let me assure you that you don't need to choose between investing in your future and enjoying your current life. You can do both. It's not a matter of one or the other. Why should you be in one camp or the other? Each extreme has significant drawbacks.
If you live only for today, you compromise the financial aspect of life. This approach might lead you to struggle to make money or to work until the day you die. As time passes, things usually only get harder, particularly as you age. A long life without money can be a hard one.
On the flip side, if you live life solely with the aim of investing for the future, sacrificing the enjoyment of the present, you risk striving for a dream life that might never occur. Plus, you might transform yourself into a money-chasing robot who doesn't truly enjoy life but only focuses on accumulating wealth. It's challenging to switch off this mindset once you've achieved your goal and built a solid investment portfolio.
So, why not opt for a balance of both? Of course, achieving this isn't always easy. However, it's possible. You can appreciate your life now while also building a better financial future. You don't need to choose one extreme or the other. There might be phases of your life when you decide to focus more on one aspect than the other. For instance, you may dedicate a few years to earning extra money to regain your financial balance. Alternatively, you might decide to take a six-month break from work because you've saved up a year's worth of living expenses, funded your investments, and have valuable skills that will enable you to find work when you're ready to return.
Do you see what I'm getting at? You can construct a life that strikes a balance between these two extremes. Investing is important, but so is enjoying life. You can do both. That's why I always encourage you to "Stack Assets & Enjoy Life."
Social media may lead you to believe that you need to pick one side or the other. You're either a relentless wealth-chasing robot or a carefree YOLO-spirit bouncing aimlessly through life.
The key is to ask yourself this crucial question: What type of lifestyle do I want to live right now, and what lifestyle do I wish to build for the future? What areas of my life am I neglecting right now? Afterward, align your finances with your decision. No, it won't be easy, and there will undoubtedly be challenges. But such is life.
Money management is crucial in all of this. It involves budgeting (I know, not the sexiest term). A budget will help you enjoy the present while also building your future. That’s the entire point of a budget. To allow you to spend your money more intentionally and aligned with your goals.
Budgets should feel liberating, not restrictive. For instance, one way to strike a balance is to split up a portion of your paycheck to investing and another part to a savings account designated for travel or any other life goals.
Here's a hypothetical breakdown of how you could split up a paycheck:
20% for investing in your future
20% for travel and immediate enjoyment
60% for bills and living expenses
Of course, these numbers will differ for everyone, depending on your lifestyle and income. The point is, you can do both. You can save up to enjoy life now and invest for your future. Don't believe that it has to be one or the other. Perhaps you'll focus more on one aspect during a certain phase of your life and shift your attention later on. That's perfectly okay. Do what needs to be done, but don't feel obligated to stick to an extreme path. We aren't robots, we're human. Yet, we also live in a world where more money creates more options for us to live life, so we need to bear that in mind.
Stack assets & enjoy life. You can do both.
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I recently put together a master list of 100 different ETFs designed to support different investment goals. You can grab it here.
And as always: Stack assets & enjoy life.
-Josh
Blog Post: #130
