The 3 keys to physical fitness, financial security, and academic achievement
When I first started college I was not the best student, but I was pretty good at sports so I was fairly physically fit. In those first couple years of college I noticed that many people were in the same boat as me: able to apply themselves to one area, while lacking in the other. It took me those two years to realize that the same skill sets I had used to become a better athlete could be applied to make me a better student, after I applied those skills I got straight As for the first time in my life and kept that streak going until I graduated. Once I graduated, it was time to get my financial situation together (get a job, manage expenses better, etc.). After a few years of doing that I came to the realization that I was using some of the same core competencies and lessons from my fitness and academic areas to get my savings together over time. I’ve had a lot of success applying these principles so today, I’m going to share them with you in the hope that you can apply them and see success as well.
1. Consistency
Consistency is King! Whether you’re saving for a house, training for a marathon, or writing a term paper, taking deliberate and consistent actions toward your goals will be the foundation of achieving those goals. For my financial goals, I make a point to consistently move a portion of my paycheck into a high yield savings account on pay day so I can consistently put away for the future without being tempted to spend the money (plus it generates interest).
2. Time
On top of staying consistent, it is important to understand that things take time. Anyone can be consistent for a week, but it takes true dedication to be consistent for months or years at a time and not lose sight of the end goal. the best example of this is compound interest (discussed in our previous post), where there's so much money to be made over time with a consistent effort and some patience. for many young people this will be the hardest concept to grasp because we live in a society of instant gratification, but it is a critical one. As the saying goes: “Rome wasn’t built in a day!”
3. Research / Education
Once you're able to devote time and apply strategies consistently, education becomes the key differentiator to your progress. No matter how long or how consistently you do something to help yourself, it is not an effective strategy, it’s not going to help you as much in the grand scheme of things. Taking the time and effort to invest 20% of your take home income every year for 10 years sounds like a great strategy, but if you invest in mostly risky stocks, it wouldn’t have the same return that a conventional investing method would. To stay educated on what your next steps should be, ask around! Ask your professor, ask your trainer, ask a CPA, ask Google, read more Scale Financial Education blogs; there are so many resources out there and you should look to utilize them whenever you can.
There you have it! These three principles have helped me immensely in recent years to become more successful in my personal finances, career, and personal life. Hopefully they can help you too!