Stumbling through Twitter, I came across a great quote from James Clear. The message is simple, easy to understand, and really fits with a lot of the messaging I try to get across for clients when it comes to their finances.
A pretty simple message but it can be applied to every part of our day. I told myself earlier this year that I was going to train to run a triathlon.
Do I really need to do that? Or instead, should I be focusing on not missing a single day of exercise for the remainder of the year. Instead of a triathlon, should I do 200 5k’s?
“Most people need consistency more than they need intensity”JAMES CLEAR
Think of this like training for a marathon or long distance race. You don’t start out immediately sprinting 6-7 minute miles. Instead, we have to get our body used to both aerobic and anaerobic training.
Aerobic training is lower heart rate training. You run at about 80% of your max. And the beauty here is its relatively low stress and makes you can feel like you can do this forever. It’s a slower pace but the consistency of training in your aerobic zone amplifies the rate at how far or long we can run.
Aerobic training also doesn’t seem like progress but it is. Sure, its not a sexy as sprinting your heart out past people on the trail but even the best runners on the planet focus heavily on these small steps.
“Our elite marathoners typically run 85-90% of their training volume in the aerobic zone”ANDREW KASTOR, HEAD COACH OF THE MAMMOTH TRACK CLUB IN MAMMOTH, CALIFORNIA, US
The goal is to train small and let your body adapt to the continued punishment. The more you get comfortable with these periods of aerobic training, the better your performance will be when you need to kick into the anaerobic zone.
Too much time in the anaerobic zone without enough aerobic training will turn you into a hot mess limping across the finishing line…
As I have been working to improve my conditioning and ability to run distances, I keep finding so many parallels to investing. Everyone focuses on the big wins, the home run stocks, or trying to win the lottery. Nobody enjoys putting in the work and focusing on the building blocks of building wealth.
HARVARD BUSINESS REVIEW
“…everyday progress, even a small win, can make all the difference…”
The consistency of regularly investing will vastly outperform the intensity of aiming your sights only on big wins. Forcing yourself to just continue to put money away has an immense outcome if you can be patient!
This idea of “retirement” or saving for a home, sometimes seems like eating an elephant. But everyone knows exactly how its done..
So, stop trying to focus on the home run hits and instead focus on regular consistent action! Set up those recurring contributions or open that college planning account. The goal isn’t to win the lottery but to instead fight off inaction. Doing something, even something small, will compound on itself.
Csenge Advisory Group, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, asset class, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.