How to Prioritize Investing versus Making Memories Now

Derek’s question is up next. It says, “How do you prioritize savings and living in the present? I just watched your video on not being miserly, but I’m struggling to get to 20% savings without feeling like I’m putting my life on pause.” No surprise, he’s age 30, so he’s in the thick of the messy middle or just entering—maybe you know he’s in that ballpark.

“Do you have any words of wisdom?” I want you to answer it, but I want to tease Derek. We actually have a show coming up. We’re recording it in the next week or two because we already have the content written on it. Specifically, it might take a little longer for it to release. It’s on the messy middle because we know how much you guys are struggling. I’ll leave the rest of it for Bo because he is in this right now. It’s hard, like a lot of folks out there. It’s hard to hit 25% because we’ve got family commitments, the real estate market is crazy, we’ve got a mortgage, a job, a spouse, and a thousand different things pulling us in a thousand different directions.

“I listen to the show, and I hear Brian say, ‘Hey, memories blossom, and it’s so important. You need to not be a miser.’ If you are trying to get to 25%, I would argue you’re not in that miser state. You’re just in the hard part of saving, building wealth, and reaching financial independence. It’s not easy; it’s simple, but it’s not supposed to be easy. There is pain, friction, and tension while you’re doing that. So, if you’re feeling that, it’s okay. Take a deep breath. A lot of other people around you in the same situation are feeling the same thing.”

Bo, what are you saying? Does that mean that I just need to suck it up, and these next few years need to suck, and I’m going to save until I get to 25%? No, may it never be. So what I’m saying is, learn how to save, learn how to get that 20% invested, learn how to get that 20 to 25, and figure out, “Okay, what things can I do now to still enjoy the present? Do those things have to cost me a lot of money, or might there be some ways that I can, I’m going to pull this from Brian, bedazzle my basic life saving 25%?”

Trying to get your savings rate up and deferring gratification does not mean that life has to be miserable. We’ve both lived through this, Bo. We both lived through those early years where life was tight, saving was hard, and getting those numbers was hard. Yet, I look back, and some of those were some of the greatest years. We have amazing members. I’d love to hear about how you were able to do that and do it well while still focusing on the savings goals. Find out how much wealth you need, when you’ll get there, and ways to speed the process with the Know Your Number course.

“Yeah, I first want to tell Derek, you’ll get through it. I mean, you will. Time will—we say it’s the country music part of the show where we say the days are long and the years are short, but you’ll be there before you know it. It broke daylight for me in my early 40s. I can remember that. But I also want to give a little additional context on how awesome the bedazzled basic life can be in the beginning.”

You know, I’ve shared with you guys, a lot of you have heard me talk about it, and I’ve had to do a little research recently to go find the actual date. But my dad lost—it was a big announcement in the New York Times in June of 1988—that my dad’s company was just getting out of the business that he had worked for 23 years. He was in his mid-40s, and they just yanked the carpet out from underneath him: company car gone, salary gone. My dad was around that entire summer, and it was the brokest of my parents’ life, where I know they were stressed. I’ve talked to my mom about how much stress was going on, but here’s the weird thing, Derek, and hear me on this. The hardest time financially for my parents was the best time of my childhood.”

The reason my dad was around, grocery store visits were different. We’d load up as a family, and I’m sure it was stressful for them, but for me as a kid, I thought it was awesome. I thought it was a cool family time. I went to timeshare presentations as vacations. My parents were very creative, and I look back on that part with an, “That’s what memories do. Blossom, because, like I said, the hardest time for my mom and dad was actually one of my greatest times.”

I’ve recognized about this is that, just like we talk about time in the market is more valuable than timing the market, time with your family, making memories, and knowing that stuff blossoms is going to be just as valuable as all the stuff you can buy. Don’t get caught up in that part, but also understand, look, I do want you to, as an achiever and a lot of you Financial mutants are achievers, I pick on Bo about this, that’s why he’s so good. I recognize it in myself too is that there is a balance. That’s what you heard me talk to with the Meer that it sounds like I did a question on.”

But trying to get to 25% is not getting into miser territory. It’s just making sure your future self respects the decision you made now because, by the way, if you can sacrifice and understand the value of discipline and deferred gratification for the first 20 years you’re in the workforce, guys, you’ll reach escape velocity to a point that your last 30, 40, 50 years of life is phenomenal. That’s what you’re working for. You’re really trying to take a little bit of today for that great big beautiful deer. I mean, that is what you’re doing. Remind yourself of that and then remind yourself, spend time with people you love and care and maximize those moments. That’s great. For more information, check out our free resources.