Tag: measurements

What Is The Real Rate of Return on Investment?

“As you get older, you realize just how valuable time as a commodity is. You tend to start measuring the cost-benefit analysis or the return on investment that you are receiving not just regarding finances and how you spend or invest your money but also on how you spend your time.”

As you get older, you realize just how valuable time as a commodity is. You tend to start measuring the cost-benefit analysis or the return on investment that you are receiving not just regarding finances and how you spend or invest your money but also on how you spend your time. Unfortunately, this is a topic that we do not prioritize or learn about very well at a young age. Often, you must figure out what are the best ways to use your time wisely and your money.

There are numerous tools out there to help guide you find the real rate of return on your investment, but you must be the one making the decision on what you prioritize. We know for a fact that our time on this Earth is limited from the day we are born. Having such knowledge shouldn’t be morbid or despairing, but rather help us to prioritize how we spend our lives in search of a good use of our time, our money, and much more.

Now, not everything that we do in life should be correlated with a ‘cost-benefit analysis’ or ‘opportunity cost’ involved. Such behavior should be discouraged if you’re obsessing over how you spend every waking minute each day. You should be leaving some room for spontaneous actions that you enjoy regardless of if it’s geared towards health, wealth, and personal satisfaction. There are times each day where we have to commit to actions that take time when we would rather be doing something else and that is what adulthood entails sometimes.

The true focus is what can we do with our time that is free, which will help us in the long-term. If we have goals of wealth, health, and pursuing our own happiness, your time should be spent in looking in investing each day in building yourself up in each of these areas. For example, when we look at investing in our health, we know there are concrete things that can be done, which will help us with a return on having a healthier body, a healthier mind, and managing our stress and anxiety.

We may have to join a gym, change our diet, sleep more, and make time for exercising, and these are the kinds of investments, if done consistently, that can pay off in the long-term. These investments that I cite will not guarantee a longer life, but it is giving yourself the best possible chance of living a healthier life, especially if you are focusing on multiple investments.

In this case, the real return on investment may not be seen right away but you are likely to see some results if you’re consistent with your investments on a long-term basis. You can measure how your diet is helping you lose weight, how your sleep patterns have changed, and how much time you spend at the gym, the yoga studio, or in playing sports. These investments are measurable but the results on these investments will eventually show up in a real rate of return that will put you on a path that leads to a healthier life in the long-term. Returns are not guaranteed but if you are putting in the work over a long enough period, I believe the chances are good that you will be better off than you were years or even decades ago.

Similarly, how we save and invest financially for our long-term financial future, we can do the same with our health and our happiness. Everyone has different financial goals, and I won’t talk about specific investment advice to give, but you can always estimate to a degree what kind of percentage return you’re likely to get from your investments over a year or a decade or a century in terms of growth. These real returns will come to you but if you’re not consistently investing in building your wealth, those real returns will not be as impactful or as fruitful as you would have hoped. It goes to show that with either health, wealth, and happiness, that the earlier you invest in those facets of life and the more that you invest in them, the better off that you will be.

What makes someone truly happy is complicated and will differ depending on your emotional state, but I do believe spending more time with those who care about you, and you who care about them, enjoying more time spent doing the hobbies and interests that give you joy, and being able to invest time in learning new skills, exploring new places, or investing in your home and community, those kind of investments will have real returns on making you happier in the long-run. There will be times when what you did or do no longer makes you happy and that is alright. The key here is to keep trying out new things, keep meeting people, keep trying to be involved in areas of life that you think will make you happier, that is key in continuing to make those investments in building your happiness into the future to keep producing better and better returns.

Time is fleeting and you must prioritize health, wealth, and happiness in my view, which will give you those real returns in your life to enjoy and take joy in. Most of all, you have to know the difference as you get older between what’s give you actual returns for your hard work and efforts, and what you have to stop doing that is giving you no real returns. It is important to prioritize more of what will pay off in the future throughout your life and increasingly avoid those activities that produce a negative return and will leave you worse off.

It is one thing to be able to invest well in activities that bolster your life satisfaction, but you should also remember to avoid those other ways of spending the time that lower your real returns or negate them entirely. Be sure to know what a waste of your time is, if you can cut that activity out or lower your exposure to it and be able to replace the time spent on that activity with a good alternative. which you can take part in to continue to invest in building a life and a future that will make you healthy, wealthy, and happy.

Get A Little Better Each Day

“Progress takes time and effort, and you will not see results overnight without putting the work in.”

Progress takes time and effort, and you will not see results overnight without putting the work in. You can measure progress in whatever you do by seeing if you are starting to get a little better in whatever area you are applying yourself to. If you are taking practice tests and you notice your score keeps going up, if you can swim further and faster than before while being timed, and if you are able to save more money each month than you had the previous one.

Progress is not linear in terms of growth, and it will not happen all at once. The important thing to keep in mind is that you are having more good days than bad days. You need to see if you are progressing a little bit each day or if you are at least progressing most of the time when you measure yourself. There will be days or times when no progress is being made and that’s alright. However, how you react to that and how you work to exceed your expectations next time can make all the difference. Setbacks and lack of progress are going to happen when you are striving to be better or to do better. You must persevere and not let it get to you mentally.

What you want to avoid is to ‘throw in the towel’ and to give up without doing your absolute best and pushing yourself to the limit. If you work as hard as you can as often as you can, progress is more likely to be made on that day, that week, that month, or even that year. It’s not bad to take a day or so off to give yourself a break if needed but don’t let that break become permanent or don’t throw your hopes and dreams away because something is hard. When something is hard to do, that should push you even more because you are testing the limits of what you are capable of.

There is no greater thrill than being able to usurp everybody’s expectations that they set for you including your own. The thrill of achieving or accomplishing something that you thought was previously impossible and so did everyone else. It’s important to keep in mind that kind of achievement takes days, weeks, months, or even years to accomplish so you should be consistently measuring your progress and your setbacks. If you are consistently getting a bit better each day and doing so more often than being stagnant or getting worse, you are that much closer to achieving your goal(s). The key to achieving anything is both progress and consistency because they go hand in hand with each other.

For example, if you are running to train for a marathon, there will be days where you can run 10 miles and some days where you’ll run 5 or 15 miles. The key to keep in mind is that you are running most days or even every day to train on a consistent basis. You should be striving to go from 5 to 10 to 15 to eventually 26.2 miles in a full marathon pace to train at that level to be fully ready for the race. What you want to avoid in this scenario is running less miles as you get closer to race day or running less miles over time. You want to be building consistent habits and practices to be truly ready for this kind of accomplishment.

An impressive goal like running a marathon is an excellent way to show just how key consistency can lead to progress but it’s also about setting goals such as reaching a new number of miles each week for training purposes. If you go in a training like this case from 5 miles to 25 miles in a few months to train for the race six days a week, you’ll be much more likely to reach that goal of running a full marathon. You’ll ensure that you are as ready as can be when you step to the start line on that race day because you became a little better each day.  

The key is to go from 0 to 26.2 miles during that training and not 26.2 miles to 0 miles ran. There is a clear distinction there on how to get a little better each day and that involves both consistent progress each day and knowing how to measure yourself in terms of that progress with the amount of running you do to train. Getting better at anything in life is like running a marathon in that you won’t achieve it overnight, it takes consistency at a high level, and you have to set measurable goals to show that your progress is sustainable so that you are ready to claim that achievement.

Life is a marathon in itself so make sure you count the days you made progress in your goal(s), note how you can get better, be consistent about what you want to achieve, how you’re going to do it, why it’s important to you, and you’ll be well on your way to being successful. Getting a little better each day is what I hope for all of us in whatever we set our minds and our hearts to. Be sure to treat life as a marathon and not as a sprint, and you’ll be on the right track.