Copy

Enough - Part 5. My Own Case Study

The conclusion of our series on Enough. If you missed the previous ones, you can read Part 1, Part 2, Part 3, and Part 4.

Quick recap: 
Money should be a means, but it has this sneaky habit of becoming a meaning
One way to keep it as a means is by assigning specific dollars for specific jobs
Recognize and prevent Lifestyle Creep by keeping track of our expenses over time.  
Once we’ve reached Enough, then we decide what to do with Excess

This entire series, I’ve had this sneaky voice in the back of my head whispering “You’re a fake! You don’t even have it all figured out yourself. Who are you to talk about this?” I’ve done my best to ignore him, but I want to make sure that I’m communicating not from a guru perspective of having it all figured out (hence my use of first party pronouns), but as someone who struggles, thanks a lot about it, and is pursuing diligence over perfection. 

So I thought I’d share a few examples of where I’m applying it in my own life. 

Means and Meaning
One area I’ve consistently battled with - and have shared before - is how I compare Fident to other advisory firms. Revenue, assets, client, general growth, etc. An unkillable competitive part of my mind will always do this. However, I realized that I was making decisions for the firm’s future based not on what I felt I wanted to personally do, but what would keep up with my peers: how to grow faster, how to hire, how to market more. 

I'll live in this rut for a period of time until I realize how foolish it was (is). I don’t even want to have a huge firm, so why would I compare myself to those types of firms? 

Ahh - right. Because Fident was trying to morph from a means to a meaning. I was (am) finding more identity in who I am based on how others saw Fident. This is unhealthy. (Fellow Enneagram Type 3’s: you get it.) 

Lifestyle Creep
While my wife and I are obnoxiously obsess- err, diligent from a personal cash flow standpoint, I noticed earlier this year that from Fident’s standpoint, I was getting lazy with expenses. To be quite honest, my business budget philosophy the first few years was this: spend as little money as possible. As Fident grew in revenue, I became more and more lax on expenses. 

I run a tight and forward looking personal budget, but don’t really proactively budget on the business side. And while doing a Quickbooks tuneup a few months ago, I realized just how bloated my expenses had become. It was kind of embarrassing, to be honest, as I shared it with a friend. 

My point is that we’re all guilty of messing up from time to time. We won't be perfect, but we can be diligent. And we should examine our own finances on a somewhat regular basis to try and establish an idea of “Enough.” 

So my concluding thoughts:

Money should be a means, but it has this sneaky habit of becoming a meaning
One way to keep it as a means is by assigning specific dollars for specific jobs
Recognize and prevent Lifestyle Creep by keeping track of our expenses over time.  
Once we’ve reached Enough, then we decide what to do with Excess
Recognize we’re never going to be perfect, but we should remain diligent.
Interesting Resources

Quote
Warren Buffet
In the short term the market is like a popularity contest; in the long term it is a weighing machine.

Friend and fellow advisor Tim Maurer's interpretation:
If the Senior Prom Committee is the popularity contest, the weighing machine is your 30-year reunion.

The Information Lifestyle: How Three Filters Shape the Mind
10 min read | More to That
Aside from probably having THE MOST effective opening hook to get you interested I've ever experienced, this article is one of the more insightful reads I've come across in awhile. I'm always complexed at how people can view the same dataset and arrive at starkly different conclusions. The author argues that Facts and Events are filtered by our general Awareness, which allows them to become Data that is filtered by our Reactions, which allows them to become Information that is then filtered by our Identity, which allows those original Facts and Events to shape our Perspective. Super, super interesting read. 
4 min read | Vanguard
In my own anecdotal experience, it seems a lot of people think that it's a foregone conclusion the market is about to tank - if not now, then certainly by November. My general reply is "Maybe. Or maybe not." Long-time readers know that I don't think it's possible to consistently know when the market's going to rise vs fall, but Vanguard lays out some potential reasons why the market - which has recovered from its Covid lows - may not be all that disconnected from the economy. 
This week wraps up the series on Enough. I'm going to turn it into a blog post, and already in the first 4 parts your feedback has been tremendous. Please keep it up! Reply back and let me know your own thoughts on what Enough means in your life, areas where you've defined it, and areas where you've struggled. It's beyond the scope of this project, but Enough isn't limited to finances. It can include our relationships, our time, our energies, our skills. 

I absolutely love hearing your thoughts, so hit reply and let me know them. 

Gratefully,
Copyright © 2020, Fident Financial, LLC. All rights reserved.

Phone: 717-208-2235
Web: www.fidentfinancial.com

Not for you?  No worries - update your preferences or unsubscribe below. 
I only want to be in your inbox if you want me to be.
No hard feelings. I promise. 
 
Fident Financial, LLC (FFL) is a registered investment advisor offering services in the state of PA and in other jurisdictions where exempted.  Opinions expressed in this email are solely those of FFL, unless otherwise specifically cited.  Material presented is believed to be from reliable sources but no representations are made by FFL as to another parties' information accuracy or completeness.






This email was sent to <<Email Address>>
why did I get this?    unsubscribe from this list    update subscription preferences
Fident Financial · 1 Thunder Ln · Lancaster, PA 17602 · USA

Email Marketing Powered by Mailchimp