Tag: wealth

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.

The Bill Always Comes Due

“It is an inevitability that we all must face and even when we try to push it out of our mind, that responsibility is there to provide lest we face any consequences that comes with not paying the bill.”

When we think about the moment of slight anxiety or stress involved with sitting in a restaurant, you’re satiated from a great meal of great food and drinks, maybe you’re surrounded by friends and family on a special night together, in all that joy and happiness, you still have that thought in the back of your mind, “the bill always comes due.”

There is no way of avoiding it and you’re going to have to pay it, one way or another. It is an inevitability that we all must face and even when we try to push it out of our mind, that responsibility is there to provide lest we face any consequences that comes with not paying the bill.

While you are under the expectations that any food, drinks, or other service at a restaurant always will come at a cost, we as consumers try to not think about that at all to be here and now in the present to enjoy what we have ordered with the company that we keep. It is a key characteristic of human nature that we often avoid thinking about the future even when we do at present is likely to carry its own kind of consequences. I use ‘the bill coming due’ as an anecdote for how what we choose to do, how we act, what we focus on and prioritize, will lead to what kind of bill we end up paying in the future.

Just like you would not want to pay a restaurant bill you cannot afford by understanding your budget and what you can afford to order off the menu of that particular reasonably priced restaurant, we should be aware of the fact that there are other ‘bills’ that can come due in the future that can cost us more than we bargained for if we are not careful about it. What we do in the present can help us manage our bills and how we handle our future by dealing with it in a responsible and mature manner now.

Let’s think about our health and how we manage it as there will be some kind of ‘bill’ handed down to us as we get older. It can be a clean ‘bill’ of health as your physician or doctor will tell you if everything goes well or it can instead be an array of expensive tests, surgeries, or procedures that lead to a hefty medical ‘bill’ that will cost us dearly beyond what we can afford, even if you have some form of insurance. How do we avoid this kind of ugly ‘bill’ of health? Well, I won’t dive into specifics as I am not a medical physician but how you eat, if you exercise, whether you stay active in your daily life, can help us pay off that ‘bill’ in advance or make it that much smaller to manage in the long run. There are common sense ways to manage the ’bill’ of health as it will come due at some point, and you have a measure of control over it in the present to make sure it does not bankrupt you or cost you with your health in the future.

In a similar way, one’s ‘wealth’ and how you manage it in the present can help you pay the various ‘bills’ that come due on a monthly, yearly, or longer basis. When you use part of your paycheck and weekly or monthly earnings to pay down outstanding debt or to save up for an emergency or to help yourself learn an employable skill, you are making sure that you will be able to pay for any bill that can come due because you have accrued your wealth and investments in a way where you will never be broke from these ‘bills’ coming due.

If you make other choices instead where you spend every dollar you make and beyond that, get into debt with various bill collectors including the credit cards and other loans you have taken out, the bills that come due will be beyond your accrued means, and you may be struggling for the rest of your life to get out from the ‘bills’ coming due that you have to pay or face serious financial consequences.

You do not want your health, wealth, or ability to earn a living to suffer because you cannot handle both present and future bills to come. You should make sure to think of the future to save, invest, and earn for a ‘rainy day’ fund that can overcome an unforeseen or unexpected bill coming due. Again, I am not making any specific financial recommendations to you as I am neither a financial planner or investor, but I do want to impart some common sense and wisdom in how to avoid future ‘bills’ by planning to save and invest for the future in some measurable way so the bills coming due will be paid for entirely without any stress or anxiety.

Lastly, it is unfortunate where we live in a society where it can cost exorbitant amounts to educate oneself for the workforce and for financial success, indebting ourselves in the process. I believe education is worth investing in if you are able to afford the bills to come due, but if you are in a cycle where you can’t get out of accrued bills or debt because you went for higher or professional education, please make sure that the investment that you make in the present will help pay off the debt in the future. The worst thing to do is invest in an education that does not end up paying for itself later and help with all the bills coming due to that investment.     

Make sure you focus on those employable skills or to be a subject matter expert or practitioner, in an important area that will pay off because you invested in your education in a useful area. I know of a lot of people who cannot get themselves out of a debt or pile of bills, even with their extra years of education, because what they learned what not useful for the job market, and now they are stuck with bills that will never be paid off.

I am not against the idea of paying for more education but please make sure it is aligned with your future career or business goals. If you are not sure of what you want to invest financially in an education, there are many free tools and videos that can help you understand better of what opportunities are out there. I think it’s important to think hard about what bills you want to take on for your education because it is no good to have a debt burden that will prevent you from future job or educational opportunities because you have bills coming due that you must sacrifice your ideal career or business for.

Whether it is health, wealth, or education, you will have to pay the bills that come due, even if they come at an unknown future date. Make sure you invest in each area within reason that you will be able to afford to do so without suffering later for bills or obligations that you took on that you found were beyond your capacity.

Do not sacrifice your future by what you do in the present. Make sure you practice good health habits, invest in your wealth accrual with whatever route that you find is best for your goals, and to reasonably access educational opportunities that can create excellent business or career opportunities that you will not have to sacrifice either your health or your wealth to achieve. Remember that the bill(s) always come due at the end, but that does not mean life should not be enjoyed or taken advantage of, but to do so in responsible manner, where your present is secured in each of these three areas, and as a result, your future is prosperous, healthy, and full of opportunities.

What is ‘True Wealth’?

“I believe the key is being able to maximize wealth in both facets as much as possible without sacrificing one or the other too much.”

There is a standard definition of ‘wealth’ as a concept: An abundance of valuable possessions, money, or other resources to the degree that it causes prosperity. However, what is prosperity to you may not be prosperity to others. I like to think of wealth is not an abundance not just of material possessions or of money or of how much you can acquire but also how much you value what inherently belongs to you. What I mean by that is your time, your health, and your freedom. While building wealth is key to having success in life, there are other facets to wealth that we can neglect if you are not careful.

Wealth will come with sacrifices whether it is your time, your freedom, or your health as there are tradeoffs involved. You’ll find that to become more prosperous, you may have to sacrifice time, freedom, or health to build that wealth up whether in the form of money, resources, or material possessions. I believe the key is being able to maximize wealth in both facets as much as possible without sacrificing one or the other too much.

In order to gain more money, you may have to sacrifice your time in the sense that you exchange your time to earn money or you are not as free to do what you want each day because you have to work a job, grow your business, or learn new skills in order to earn the money to become wealthy. The same could be said of your health whereas you may have to sacrifice the time you could use to invest in your own health to build material or resource wealth with the time you put in to earn money or other assets. That time that could be used to be spent at the gym, on a run, going on a hike, or practicing a sport could go to your job or your business or investing into a new asset.

If you can find out what you truly value and what you want to maximize in terms of your wealth, make sure you prioritize it to have true wealth for you. For example, if fancy cars, big houses, and a lot of material possessions appeal to you, maybe you don’t mind putting a lot more time into working for that, putting your health on the backburner, and sacrificing certain freedoms to do what you must instead of what you want to. On the contrary, if you care less about possessions, material wealth, but still want to be comfortable in terms of money or investments, then maybe you can work less, focus on your health and free time more, and exercising more freedoms to do what you want with the extra time you have as a result.

You should decide what kind of wealth is best for you. What truly will make you happy, what you are passionate about in life, and what you want to get most out of life, you’ll be able to build that true wealth. I think the key for anyone is to maximize the 24 hours in a day, 7 days in a week as much as possible. If you can build your wealth passively to get some of your time back, that is a key advantage in my view to having true wealth too. When you can be financially successful by having multiple sources of income, multiple options to build wealth, and with some or a lot of autonomy in your work or business pursuits, that really can be an advantage in not only being successful but happy too.

Wealth is not just about being financially well off but also about being well off in other areas including health, time, and exercising freedom in what you do and how you do it. There is a distinct difference between someone who must rely on others for their wealth building and someone who is able to create their own opportunities or build their own means of wealth in a business, in real estate, or in investments that can create more freedoms rather than slowly eliminate them.

You can have as many possessions as possible, houses, cars, and money in the world but if you have no free time, no health, or no autonomy in what you do or how you earn that wealth, then you may need to reassess if that is the true wealth that you want out of life. I hope that you’ll rethink what wealth means to you because only you can decide what you would like to prioritize as you build it. You must consider that sacrifices will have to be made, that time, money, and health are all commodities that can be saved or lost depending on what you prioritize these days.

I only ask that you realize that having the freedom to do what you want and when you want is underrated. It is a form of wealth within itself along with keeping your health in good shape as long as possible even if you must sacrifice some time or freedom as a result. Consider that you can be very wealthy in the material sense but if you are unhealthy, working all the time, and have to answer to others in order to keep building that wealth, are you truly wealthy or is it only one kind of wealth that you have?

Think about what you are willing to sacrifice, what you are willing to earn, and how to passively build on the wealth you want to earn to save more time and freedoms that can be used for health, time spent with family and/or friends, or enjoying what the world has to offer outside of your own wealth building. Wealth takes many forms as I mentioned so remember that while we often think of money, cars, houses, and other assets, we should remember that wealth can be time spent away from an office to enjoy a vacation, wealth can be an extra hour in the day to use the gym or go for a hike, wealth can be starting businesses that matter to you with hours of work that you set for yourself and only you can hold yourself accountable for. Think about the wealth that you want to build throughout your life and how you want to make it work for you.

Standing Up to Double Standards

“I am all for having standards to abide and follow as they form the backbone of our laws, rules, and regulations, but what we need to avoid is having two sets of standards, which divides people and aggravates resentments.”

I discussed in a previous article of mine why setting standards around behavior, conduct, and fairness are important. I want to dive further given recent current events of which I could put to a few examples, but for which involve the recent internationally televised and particularly controversial awards show (not naming names here) as well as other prominent examples from politics and business that come to mind in past years on why having two sets of standards can be so deleterious for a society. I am all for having standards to abide and follow as they form the backbone of our laws, rules, and regulations, but what we need to avoid is having two sets of standards, which divides people and aggravates resentments.

We all can agree upon certain norms and standards that are set for us to build trust, reliability, and faith in our institutions and our society. However, when standards are ignored or watered down or not even followed by certain privileged parts of society, that can backfire in several ways including the loss of trust in the standards that were meant for all but are not followed by everyone.

When a few noteworthy individuals, who are looked upon as role models or are put into positions of power and/or influence, when they do not abide by the standards or thwart them openly, it causes others to realize that there are ‘double standards.’ Double standards can happen rarely, occasionally, or often enough that most people will start to realize that the rules set for them are not good enough for everybody and it can cause a ‘domino effect’ when more and more individuals choose to ignore the set standards if they see those with great power, wealth, or influence ignore the standards that they so diligently abide by and follow.

Certainly, there is no excuse to avoid set standards when wealthy and powerful people go out of their way to avoid or ignore them, but it does have effects on people’s faith and trust in those standards when some people because of privilege or background can just ignore or trample all over them. When there are “rules for thee, but not for me” and they are openly flaunted without consequence or punishment, our standards of behavior, conduct, and overall kinship will suffer. On top of that, when standards are diminished, degraded, or abused, that can cascade to our laws, rules, and regulations falling out of favor with more and more people as a result.

The most influential, wealthy, and powerful people in society may not feel they have a moral and a legal obligation to abide by standards but if they choose to ignore or chastise them, there will be negative ripple effects that can come about when others who follow, support, or condone them makes excuses to avoid those standards too and to create their own that are weaker or unenforceable. Double standards involve two sets of standards; often contradictory or competing or negating each other, which can cause unfair practices or inequal application to different groups of people.

If you do not happen to have the chosen background, power, privilege, or wealth to have your own set of standards, you will see the injustice and grievances more clearly when you see the standards not apply to everyone equally even when they still apply to you and your peers. The worst consequences of having two sets of standards with the new set of standards being weak or non-existent or outright morally wrong is when some people act willfully ignorant of the standards that society has fought to uphold, normalize, and spread to everyone equally.

They can end up applauding the 2nd set of standards, ignore the wrongdoing being done, or even condone the action(s) of that individual as being morally upright even when they know in their heart that what that person did is inexcusable. While standards of behavior and conduct can be ignored or demeaned, they never truly go away and while we can choose to forget them or ignore them or mock them, those who uphold these standards will do their best to make sure to point out the ‘double standards’ occurring and how that makes our society worse off as a result.

When you see these ‘double standards’ pop up and there’s nothing you can do about it to change that abuse of the standard, don’t stay quiet about it and do your best to voice your discontent with that ‘double standard’ having reared its ugly head. If you can’t get rid of that ‘double standard’ or hold those of privilege or in power accountable for flaunting their disregard for one set of standards, make sure you do not forget their hypocrisy or their lack of respect for the rules and the laws that keep society functioning.

Standards can change, evolve, and become more just over time, but having two sets of standards will always muddy the proverbial waters and cause discontent, anger, and resentment to brew beneath the surface. Being able to call out the ‘double standards’ when they emerge is crucial to making sure this kind of injustice does not grow or become normalize is very important. If the ‘double standard’ is embraced rather than done away with, the best that can be done is to bring attention to it, try to influence those people who can get rid of it, and then do your best to make sure it never comes back. Once the set ‘standards’ break off into two or more groups or two or more social classes or more backgrounds, it can be hard to put everybody back on the same set of standards in terms of accountability.

People of great power, influence, and wealth are under an extremely heavy lens by the rest of us, which is why they should be ever more careful to strive to be good examples in how they comport themselves even if they never wanted the attention or focus on them. How they act, behave, live, or cause a scene in public can reverberate in how others do the same in their own lives, which may not seem entirely logical but people behave based on the standards that they see around them and when one individual or a group of people betray those strong standards by weakening, abusing, or creating their own lackluster standards for themselves alone, other people will notice and will cause ‘double standards’ to emerge more and more often causing the bonds of societal brotherhood, respect, and love that can hold the society together like a strong glue to slowly weaken, wither, and potentially break off.