My observation is that people tend to live their lives in
one of three time zones, the "past", the "present" or
(rarely) in the "future."
Living in the past, either glorifying the "good old days"
or replaying some terrible past event over and over again
clearly limits us and doesn't work very well. Fortunately,
not too many people do this.
Most of us tend to focus on the present, and that's both
good and bad. Years ago, Ram Das made his famous
recommendation to "be here now." We are often reminded that
the present is the only moment over which we have control,
the only time in which we can take positive action. We
cannot change the past, and while we can influence the
future, obviously we cannot control it. Living in the
present and making every moment count makes sense and I
highly recommend it. Carpe Diem-"seize the day!"
At the same time, however, it's critical to notice that too
many of us live ONLY for today. We keep our lives so full
and so busy that getting through the day is about all we
can manage. Some live for "experiences" and become addicted
to drama and excitement, or to simply being "busy" all the
time.
As consumers, some of us over-spend and fail to save. We
are urged to "fly now, pay later" and while that can be fun
in the short-term, it is a tragically narrow focus that
distracts us from creating the future we want.
The average American saves less than two percent of their
income. In 2001, while the average homeowner had a median
net worth of over $171,000, the average renter had a net
worth of less than $5000. Yes, renters tend to be younger,
but that's an astounding difference! According to the
Employee Benefit Research Institute, less than a quarter of
Americans use a 401(k) and less than 15% have an IRA!
According to cardweb.com, the average American family has
seven credit cards and owes about $9000. That's incredible,
and frightening.
One of the great predictors of future success is the
ability to delay gratification.
Successful students study now to pass the test at the end
of the quarter. Successful entrepreneurs work long hours
today to enjoy the fruits of a successful business for the
rest of their lives.
Creating wealth is largely the ability to live (and act) in
the present while keeping one eye focused on the future.
Sure, winning the lottery or inheriting a fortune is always
a "possibility" but the surest way to create wealth, retire
comfortably and leave a legacy is to delay gratification,
live below your means, invest for the future and reap the
rewards of compound interest.
The winners in life have always known how to live full-out
in the present, while also planning (and acting) for their
future. They know how to enjoy the moment, while resisting
the temptation to act impulsively. They know how to plan,
and how to implement the plan day by day. They know the
future is "where it's at." They know the future will not
take care of itself unless they plant the seeds and prepare
in advance.
Save for your future. Live within your means. Use credit
wisely. Use tax-advantaged savings and retirement plans to
create the future you want. Buy your own home. Put the
miracle of compound interest to work FOR you, rather than
having it work against you.
one of three time zones, the "past", the "present" or
(rarely) in the "future."
Living in the past, either glorifying the "good old days"
or replaying some terrible past event over and over again
clearly limits us and doesn't work very well. Fortunately,
not too many people do this.
Most of us tend to focus on the present, and that's both
good and bad. Years ago, Ram Das made his famous
recommendation to "be here now." We are often reminded that
the present is the only moment over which we have control,
the only time in which we can take positive action. We
cannot change the past, and while we can influence the
future, obviously we cannot control it. Living in the
present and making every moment count makes sense and I
highly recommend it. Carpe Diem-"seize the day!"
At the same time, however, it's critical to notice that too
many of us live ONLY for today. We keep our lives so full
and so busy that getting through the day is about all we
can manage. Some live for "experiences" and become addicted
to drama and excitement, or to simply being "busy" all the
time.
As consumers, some of us over-spend and fail to save. We
are urged to "fly now, pay later" and while that can be fun
in the short-term, it is a tragically narrow focus that
distracts us from creating the future we want.
The average American saves less than two percent of their
income. In 2001, while the average homeowner had a median
net worth of over $171,000, the average renter had a net
worth of less than $5000. Yes, renters tend to be younger,
but that's an astounding difference! According to the
Employee Benefit Research Institute, less than a quarter of
Americans use a 401(k) and less than 15% have an IRA!
According to cardweb.com, the average American family has
seven credit cards and owes about $9000. That's incredible,
and frightening.
One of the great predictors of future success is the
ability to delay gratification.
Successful students study now to pass the test at the end
of the quarter. Successful entrepreneurs work long hours
today to enjoy the fruits of a successful business for the
rest of their lives.
Creating wealth is largely the ability to live (and act) in
the present while keeping one eye focused on the future.
Sure, winning the lottery or inheriting a fortune is always
a "possibility" but the surest way to create wealth, retire
comfortably and leave a legacy is to delay gratification,
live below your means, invest for the future and reap the
rewards of compound interest.
The winners in life have always known how to live full-out
in the present, while also planning (and acting) for their
future. They know how to enjoy the moment, while resisting
the temptation to act impulsively. They know how to plan,
and how to implement the plan day by day. They know the
future is "where it's at." They know the future will not
take care of itself unless they plant the seeds and prepare
in advance.
Save for your future. Live within your means. Use credit
wisely. Use tax-advantaged savings and retirement plans to
create the future you want. Buy your own home. Put the
miracle of compound interest to work FOR you, rather than
having it work against you.
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