A while ago our dependable car, which had served us faithfully for over a decade, started showing its age. As time passed, we had to invest increasingly larger amounts of money, until we finally reached the conclusion that we needed to make a change. However, that decision sent us down a path where countless other decisions had to be made – new or second-hand, 5-seater or larger, gas, hybrid or electric – to name just a few of the many choices. Every time we thought we could move ahead, we were confronted by more detailed options.
The whole process of making such a major decision requires vast amounts of time, energy and interest. If not for my limited time and energy, I would have invested more in the whole process – if only I was interested. However, cars just don’t do it for me. I need my car to be practical, have four wheels and suit the needs of my work and family. Other than that, I just don’t care enough to spend time finding the perfect ‘one’. I researched the basic requirements, and chose a model that fit the bill. Once that was completed, I wasn’t prepared to invest any more of my time exploring the countless alternatives.
My search for a car highlighted a significant life lesson that applies to many other areas of our lives. We need to recognize and acknowledge our strengths and interests, and operate within those parameters.
This life lesson is relevant to all of us, and to all financial (and non-financial) decisions that we make. We all have constraints, the main ones being money and time. Basically, it comes down to us needing to decide what’s important to us and what we want to spend our time and money on. Life is about trade-offs – we need to acknowledge we won’t be able to do everything, so we prioritize.
Some people love exercise and will spend time and money researching and buying expensive equipment to optimize performance and enjoyment. Others view this as an indulgence and a total waste of time and money. There is no right and wrong here; it depends on you and your individual interests, strengths, time and money.
Naturally the same applies to all elements of our finances. Some people love budgeting, they thrive on the feeling of being in control, and are motivated to spend time regularly ensuring that their budget is updated to reflect their reality. Others find it a chore and will do anything to put off sitting down to do it. They need an external force to motivate them or it simply will not happen.
Similarly with investing and investments. There are those who have the time, knowledge and interest to structure and manage their investments to maximize their potential and make sure their savings will meet all their financial needs in the decades to come. There are those who understand and are knowledgeable about the various elements of the financial markets, but lack the time required to structure their investments. And some people are just overwhelmed by the whole subject and feel ill-equipped to manage the composition of their assets.
We all need to be able to identify our interests and strengths and be aware of our limitations – regardless of whether they are a result of time, money or knowledge. Our constraints may well limit our options, but we can leverage our strengths to make intelligent and informed decisions. If you recognize that for whatever reason you cannot manage your finances alone, use the ‘external force’ whether it is an app, a knowledgeable family member or friend, or a professional to help you move forward. Once we prioritize our interests and recognize our strengths, we can make choices that align with our goals, and use the tools within our influence to help us achieve them.
If the decision or situation regarding your finances is overwhelming, break it down so you recognise the goal and, if need be, find someone to help you get there. The lesson from my car is that we all need to be self-aware and true to ourselves. And now I just need to hope that my car serves me and my family long and faithfully so I don’t have to go through the whole process again in the near future!