With
any of these it is easy to skip doing what needs to be done today
at the detriment of where we will wind up tomorrow. There is a
constant tension in our lives between the easy and pleasurable
momentary experience and our long range happiness and well being.
We
are all different and that is an important point. Each of us has
areas in our lives where we know we should be more disciplined
but we keep giving into short term urges. By the same token each
of us has areas where we are very disciplined.
Because
of fundamental differences in our personalities there is no real
correlation between discipline in one important area and another.
There are lots of examples of disciplined athletes who can’t force
themselves to crack a book. Examples of people so disciplined
about their career they destroy their family. Examples of health
nuts who workout and eat right but squander their money so recklessly
that when they hit 70 they’ll be in better shape than anyone else
in the poor house.
Often,
the things we are highly disciplined about simply reflect our
individual interests rather than true discipline. Some people
really like school, some people really like work, some people
really like to save money, and some people really like Church.
All of these things may lead to laudable long term outcomes in
that area we like. However, if we cannot apply that same discipline
to other important areas we can be at serious long term risk.
My
point here is that there are some things that are so important
to our long term happiness that we need to learn discipline and
long range thinking even if it is not an area of natural interest.
I will assume all Meridian readers will agree that spiritual matters
are at the top of the list. If we foul up our long term relationship
with the Lord, absolutely nothing else matters.
Beyond
spirituality, I argue that long term financial well being needs
to be near the top of the list. (Sure physical health is up there
too. But this is the Money Wise column. I’ll let other Meridian
writers argue for their areas.)
I
believe there are key principles that apply to good long term
outcomes in spiritual matters, financial matters and any other
important area.
First, faith in a rather vaguely understood
future.
The scriptures tell us of things like spirit rest and spirit
prison and beyond that, assignments to degrees of glory. We are
sure happiness and fulfillment are associated with the best outcomes
and misery and disappointment are associated with the worst.
But in truth none of us have enough information to have a clear
idea of what that means. We must have strong faith in what has
been rather vaguely described to us.
The same applies to saving for future retirement.
In this case we can all see examples of retired persons who live
comfortably and those who do not. However, in my experience it
is still very difficult for someone in their 30’s and 40’s to
relate to what it really feels like to be 70 or 80. It is a surprisingly
vague concept even though elderly people are everywhere.
Second, strong short run discipline.
It is very easy for any of us to imagine we can make a poor
short term decision and believe we will make up for it later on.
Mormon doctrine can be particularly tricky in this regard. We
believe in things like eternal progress and baptism for the dead.
I am sure each of us knows someone who has seriously said, “Why
should I quit doing the things I like to do here? When I die
I can accept the Church then and someone can be baptized for me.”
Here examples from finance may be helpful.
A person looking forward to retirement at age 65 is far better
off to start saving when they are young. A person who is 25 and
saves $5,000 a year at 10% will have over $2,400,000 at retirement.
If he/she waits ten years to age 35 to start saving he/she will
have only about $900,000 at retirement. Wait until he/she is
45 and the retirement nest egg is only $545,000. There is a lot
of difference between have $2,400,000 and $545,000 and most of
the difference is as a result of compounding i.e. the earnings
on the earnings of the invested money for those extra years.
I do not know how spiritual compounding works
but I do know this; every financial advisor in the world will
tell you not to procrastinate the day of your saving. They say
this because they understand the power of compounding. Likewise
every prophet of God will tell you not to procrastinate the day
of your repentance. They say this because they understand there
is some form of spiritual compounding. It is harder -- much harder
-- if we wait.
Third, good practices committed to
habit.
Good spiritual habits like regular prayer,
church attendance and holding a recommend help us make proper
decisions when extreme temptations and oppositions arise. In
this way we do not interrupt our spiritual progress.
Good financial habits like budgeting, investing
and wise spending help us make proper decisions when extreme challenges
and oppositions arise. In this way we do not interrupt our financial
progress.
Fourth, avoiding the hope of a quick
fix.
As a professional in the investment field
something I frequently encounter is people who are looking for
a quick and easy way to get rich. This often comes from people
who have failed to save and are now just a few years from retirement.
They feel there should be some magic investment they can make
that will make up for all the lost time. Sorry, there is no such
quick financial fix. I know there are anecdotal stories that
might lead a person to believe there are some easy fixes. But
there are not. There are plenty of anecdotal stories about people
winning the lottery too but I’ll be willing to bet none of my
readers has ever met one. Consistent good long term financial
practices are the only real road to success.
There are also plenty of people who are effectively
looking for some quick easy fix for spiritual success. I know
there are some anecdotal stories that might lead a person to believe
they can ignore spiritual matters for years then have a late term
conversion and make up for all the lost time. The scriptures
record remarkable stories about people like Paul and Alma the
younger, but I’ll bet none of my readers has ever met one. Consistent
good long term spiritual practices are the only real road to success.
I
don’t mean to over do this. We all make plenty of mistakes financially.
Fortunately, there are enough safety nets in this country that
it is rare to find a retired person who literally starves to death
because they are poor. Further, we all make plenty of mistakes
spiritually. Fortunately, through the grace of Christ it will
be rare to find a person literally starved to death spiritually
because they are so spiritually poor. But there is a risk of
living far below our capabilities both financially and spiritually
now and for a long time to come. Short term discipline and long
range thinking are the proven steps to success both financially
and spiritually.
