While the adage says you should diversify your investments, when considering something as important as your own well-being, you can certainly put all your eggs in one self-sustaining basket.
Of course YOU are not the same as a financial portfolio, but studies show that using long-term investment strategy is an excellent way to consider how to maximize potential for both your money and your life.
Lexington Law put together an infographic that outlines over 20 strategies for taking the investment strategies that you might use on assets and apply the same logic to aspects of your life. The results are shown not only to improve your life skills, but to bring further financial returns as well.
The Long game
Many people don’t really know what they want and prefer not to think about it too much, but if you have a drive to succeed (financially or in life) you have to know what you are striving to accomplish. By taking time out to outline your goals and come up with plans to reach those goals, you are much more likely to realize your dreams.
- Dream it, do it, but write it down first: In one Harvard study, people who wrote down their goals were 10x more likely to accomplish them than those who didn’t. So start making those vision boards today.
- Draw a path to success: Along with your goals, strategize a path toward reaching them. This is like a financial plan. If you are stymied by this step, remember: you’re allowed to be flexible (as are your ultimate goals). Just creating SOME kind of path is useful for your psychological approach — even if the path changes as you go along.
- Schedule specific work at specific times: Work toward your goal in scheduled hours for different aspects of your life. If it requires turning off your phone, your wifi, and your notifications, that’s okay. Do not let anything distract you from focusing on one thing at a time. Ultimately, multitasking is an unproductive habit. In fact, 40% of productivity is lost when switching focus on too many tasks. This is similar to how you might focus on one aspect of your financial life at a time in order to try to save or make money. If you try to do too much at once, it may end up backfiring.
Create a new habit and stick with it
Financial success is about creating good habits, like paying into a 401k or paying down high APR debt and avoiding credit risks. Similarly, you want to invest in habits that make your life better.
- Count sheep: Building up sleep debt is a habit you can’t keep up. In the long-run, it will make you less productive and hinder your decision making process. Get sleep! Netflix will still be there tomorrow.
- Go green to save green: Saving money by creating habits like unplugging unused electronics or changing your house to LEDs is helpful for your pocketbook, but also for your improved well-being. Creating positive habits like these makes you feel better too.
- Take time to exercise: Sure, everyone knows exercise is important to stay healthy, but it’s not just good for your waistline. Working out can help your self-esteem, attention span, your memory, and even your salary!
- Take time for yourself: Your attention span can only last so long. It’s said that people only accomplish about 3 hours of work for every 8-hour work day. Work harder and smarter, for shorter periods of time. And then rest! Take your lunch break, don’t work later, and don’t work at home. You will actually be more productive that way.
- Take mental health seriously: Therapy is not just for depression or dire circumstances. By fostering better everyday mental health through therapy, you can lower anxiety and learn to be more collaborative at work. Mindfulness is key.
The learning curve
By actively understanding more about your money potential, you can make better gains. But continuing to evolve intellectually is important for many reasons.
- Parla Italiano?: Studies show that learning a language can actually physically expand your brain, stretching your cognitive potential.
- Paint a picture: Creative outlets like art or music can reduce stress and help your immune system work more effectively.
- Keep learning: Taking classes in any subject has been said to increase your lifespan and gives you more outlets for networking, topics to connect with others on, and generally improves your life. Choose a topic you’ve always wanted to learn about and set aside time to take a class.
Think about helping others
Philanthropy should be a part of any financial plan. Once you make your fortune, how do you plan to give back to those in need and causes that are important to you? Your time, energy and focus is a kind of investment too, and paying attention to the needs of others can pay unexpected dividends.
- Build friendships: Prioritizing relationships are not only about creating a safety net or networking opportunity. Studies show that the power of social connection extends your life and the lives of others.
- Pitch in: While it’s also helpful to work for a cause, studies show it does wonders for your own self-esteem, weight loss, memory and many other positive life factors.
- Let the sunshine in: A healthy love life connects to less stress and better general health. Put yourself out there and you’ll see how that makes other aspects of your life improve.
