Imagine you need to go from Mumbai to Pune.
The path would look like this
At this level, it’s easy to see the origin and destination and how the route will get you there.
However, you would have noticed the following in the journey:
- We decide the destination upfront and charted the map out before embarking on the journey including a rough timeline of when we will get there. We don’t just get in the car and then decide where to go and when.
- We start early in the morning, only so that we can avoid traffic on the road and reach our destination faster
- Slow speed at times: Our speed is slow in the beginning as we start from Mumbai, primarily due to traffic on the roads. This also happens at different points during the journey.
- Direction: There are many points during the journey where the path is in a direction away from your destination, sometimes moving sharply away from the destination
- Ups and Downs: As we navigate through the Western Ghats, we see multiple points in the journey where the road ascends and descends.
- Breaks: We may take a break at the Food Court for a quick snack or lunch.
Given that most of the above points attempt to discourage and pull us back, we should have given up and gone back home. But we don’t! On the other hand, we steadfastly focus on getting to Pune.
Why do we do so? Because we have the knowledge and confidence on the driver that he will take us to the right destination.
Same is the case with our life’s financial journey
- We should set a financial goal and the timeline to get there
A goal is a dream with a deadline
– Napoleon Hill
- We should start early, so that we manage the traffic of expenses that are bound to come later through our savings
Better to Start Early than Finish Late
- In the initial years, we should not get bogged down by the ups and downs as those are short-term in nature, we should keep the long-term goal in mind
Don’t try to rush things that take time to grow
- Despite the markets going down at times and giving an impression of going away from our goal, we should stick to our plan to achieve our long-term goal
Focus on long-term success but be willing to make short-term adjustments to get there
– Simon Sinek
- If markets slow down (like going up a mountain), we could put the same money power at a lower savings rate OR pump in more money power to increase the savings rate
When the going gets tough, the tough get going
– Joseph P. Kennedy
- Life may throw a few breaks where you may need to pause, but we should remember to get back to the route and continue our journey in time!
You can’t go back and change the beginning; but you can start where you are and change the ending!
– C. S. Lewis
- Just like we trust our driver to take us to the destination safely, we should learn to pick the right financial advisor and trust the advisor to take us to our financial destination safely as well