I was asked to do a talk for a virtual career fair last year. The messages are still the same and will help those transitioning from college to work handle student loans, savings, and basic risk management.
You know, financial success in many ways is like getting ready to run a marathon. And not because of the cool shorts.
Each requires a sacrifice over an extended period. For running it is several days a week, often before work or late evening when you would rather be doing something else. It is often dark, and cold, and can be lonely, especially when your buddies are off having fun.
For financial success it is a small sacrifice of time to design and implement your plan and than regular reviews. But the big sacrifice is the cash flows: if you are allocating one sixth of your income to savings and protection, then you can essentially say that you are losing one sixth of your work life, or maybe eight hours a week. That is a lot of time!
But what do you get for your sacrifices? Running gives you a toned body, good overall health, additional energy, and a confidence/sense of accomplishment that those who have not run a marathon don’t truly understand. Financial success gives you freedom and flexibility and confidence, as well as the ability to take time later for health and enjoyment.
Each takes a while to start truly seeing some results; running months and financial planning a few years. Until that point you are really taking it on faith from those who have been there before, whether your running coach or financial planner. But after you start seeing the results it becomes much easier and creates a positive feedback cycle.
Running is considered almost a religion because of the commitment to it and the bliss it creates. Financial planning is not at that level, probably because of the lack of endorphin rush. But even though the money you create can’t buy happiness, it can certainly help rent it!