As we approach the end of another tough year it is time to pause and think before we re-engage. Running the treadmill of life is challenging and a pause may just be what is needed for us to re-evaluate if we should continue in the current direction and neck-break pace.
1. Recently a friend produced a very convincing argument as to why one should follow the carnivoran diet. (eat only meat) A few days later I watched a YouTube video that suggested that one should follow the intermittent fasting diet, and then some suggested that one should eat six small meals a day. So, who is right and who is wrong and is there a correct answer after all the millions of articles and research papers each claiming success? The same problem exists in personal finance, yet some valuable observations could assist anyone in their pursuit of making the best of their finances.
2. Here is a selection of famous words of wisdom; Mostly related to what is required to make the best of one’s personal finance journey.
"Education is the most powerful weapon which you can use to change the world." - Nelson Mandela:
“Live as if you were to die tomorrow. Learn as if you were to live forever.” – Mahatma Gandhi.
“For the best return on your money, pour your purse into your head.” – Benjamin Franklin.
“The beautiful thing about learning is nobody can take it away from you.” – B.B. King.
“Learning and innovation go hand in hand. The arrogance of success is to think that what you did yesterday will be sufficient for tomorrow. Do not let your learning lead to knowledge. Let your learning lead to action. “- William Pollard.
“Education is the passport to the future, for tomorrow belongs to those who prepare for it today.” — Malcolm.
"The more you know, the more you realize you don’t know." Aristotle.
3. Lower your standards!
We all have wondered at some time how it is that some people have it all, while others struggle to find success in their personal and professional lives. The secret to achieving greater success might be counterintuitive: the key is to lower your standards. Yes, you read that right. Embracing the art of lowering your standards can help you become more successful in various aspects of your life. Let us dive into this paradoxical concept and discover how it can work wonders for you.
First, consider the power of redefining success. What does success mean to you? Is it a high-paying job, a luxurious lifestyle, or climbing the social ladder? We are often conditioned to believe that success is synonymous with material wealth and status. But is that truly what success means? Are these goals genuinely fulfilling and achievable for everyone? By lowering your standards and redefining success in a way that is personal and attainable, you can find greater satisfaction and happiness in your life.
People often feel paralysed by the pressure to be perfect. Perfectionism can be a significant roadblock to achieving success. (We have lost many teenage children to suicide due to this). It creates an unhealthy mindset where failure is unacceptable, and any mistake is experienced as a personal flaw. But the reality is that nobody is perfect. By lowering your standards and accepting that it is okay to make mistakes, one can liberate oneself from the shackles of perfectionism. Embracing imperfection not only helps you learn and grow but also makes it easier to take risks and pursue new opportunities.
4. Improving financial performance. Lowering standards can improve performance. Lofty expectations can often lead to stress, anxiety, and burnout. When one constantly strives for unreachable goals, it is easy to become overwhelmed and lose motivation. On the other hand, setting realistic expectations and accepting that one cannot do everything perfectly helps alleviate pressure, allowing one to focus on the task at hand. Studies have shown that individuals who practice self-compassion and give themselves room for error experience lower levels of stress and higher levels of productivity.
One is often faced with a challenging task that seems insurmountable. When standards are too high, it is easy to get caught up in the idea that you need to accomplish everything at once. This mindset can be paralysing, making it difficult to even start working on goals. By breaking goals into smaller, more manageable tasks, it is easier to make progress and experience a sense of accomplishment. Lowering standards in this way can make for a more productive and successful eventually.
An obvious concern would be that it may lead to mediocrity. Lowering your standards does not mean settling for mediocrity or giving up on your dreams. Instead, it means recognising your limitations and focusing on what you can control. By setting realistic expectations, you can still strive for excellence while avoiding the pitfalls of perfectionism and unattainable goals.
Real Life examples of lowering standards and expectations. J.K. Rowling, the author of the Harry Potter series, faced numerous rejections before her books were finally published. Instead of giving up or striving for unattainable perfection, Rowling persevered and adjusted her expectations, achieving remarkable success. Similarly, renowned entrepreneur Richard Branson credits much of his success to his willingness to take risks and accept the possibility of failure. By lowering their standards, these individuals were able to achieve their dreams and redefine success.
A good place to start for an individual would be to reevaluate his/her expectations and goals. Being honest with oneself about what is achievable and what is not is key. Acknowledge that it is okay to adjust your aspirations and accept that you might not reach every goal in the exact way you initially envisioned.
Mistakes and setbacks are a natural part of life and can often lead to valuable learning experiences. Rather than dwelling on shortcomings, focus on the lessons they provide and how they can help you grow and improve.
One effective strategy to lower your standards is to break goals into smaller, more manageable tasks. Instead of fixating on a distant, lofty ambition, concentrate on the steps that one can take to get there. Training for the Comrades marathon is a good example of how to get there. Just run a small distance every day and build up over time- typically a year will do the trick.
It is important to cultivate a healthy work-life balance. Recognise that personal and professional success are interconnected, and it is essential to find harmony between the two. Prioritise self-care and set aside time for relaxation and leisure activities.
In conclusion, lowering standards does not mean giving up on dreams or settling for mediocrity. Instead, it is a powerful strategy for redefining success, embracing imperfection, and achieving greater happiness and fulfilment in your life. Setting realistic expectations, practicing self-compassion, and focusing on manageable tasks, will unlock the secret to greater success.
5. It is important to take practical steps, one such is to live a frugal life. Frugality is a mental philosophy. Frugality means that you carefully assess your resources and assets before making financial plans. Frugality also means planning finances carefully so that there is no waste and expenses are as minimal as possible. Frugality takes into consideration time, money, convenience, and other factors involved in saving money and not wasting a penny.
SMART Goals: It is important that goals are Specific, Measurable, Achievable, Relevant, and Time-bound. Start with long-term goals and break them into smaller, manageable steps. This prevents overwhelm and helps one to stay focused. Focus on what matters most. Prioritize goals by importance and relevance to the larger vision. Focus on performance rather than the outcome. Our sports coaches love stating that they concern themselves with the process and the results will come by themselves. On the journey to personal finance success, one must track one’s progress regularly.
The above approach may sound radical to contemporary thinking, but it may help to work from the ground up. There is more than enough time for erecting the roof of a building, but only once the foundations are in place.
* Kruger is an independent analyst.
** The views expressed herein are not necessarily those of Personal Finance or Independent Newspapers.
PERSONAL FINANCE