Redefining Wealth: Why Your Financial Journey is More Than Just Investment Returns
In the world of finance, it's easy to get caught up in the numbers game. We're bombarded with headlines about market performance, investment returns, and the latest hot stock. But at Black Mammoth, we believe true wealth is about much more than just your portfolio's performance. Let's explore why your financial journey should focus on more than just investment returns.
The Myth of Investment Returns
One of the biggest myths in personal finance is that investment returns are the be-all and end-all of financial success. As a financial advisor, I've seen firsthand how this misconception can lead people astray. Here's what I often tell my clients:
"Investments are just also a tool we focus so much in our industry about the returns you can get in all of that Guess what? None of that matters. It doesn't it doesn't matter if I get 10 percent if I beat the s&p or not What matters when i'm investing and what I mean investing also is yes You know Stocks, bonds, mutual funds, ETFs, real estate, et cetera, businesses, et cetera. But also personally, which also means travel, you know, my mental health and my physical health, all of those, when I'm talking about investing, it only makes up a certain portion of your overall wealth journey and the growth of your actual wealth." - Stoy Hall, CFP®
Understanding True Wealth
So, if wealth isn't just about investment returns, what is it about? We define true wealth as:
Happiness
Ability to give back to others
Living life joyfully the way you want to
Money is certainly involved in this equation, but it's just a tool to achieve these broader goals.
The Importance of Goal-Oriented Investing
Instead of fixating on beating market benchmarks, we encourage our clients to focus on their personal financial goals. As I often say:
"If I told you that I'm going to allow you to reach your goal, whatever that goal is, you're happy. Ultimately, that's all that matters. But, what if I told you to reach that goal, really all you need is a 3 percent return. That person's gonna go. That's it. No, I want a 9%. I want to beat the SP 500 is what their answer is going to be right now. But again, that doesn't matter. Your goal reaching matters." - Stoy Hall, CFP®
This goal-oriented approach to investing helps keep our clients focused on what truly matters in their financial journey.
Changing Your Money Mindset
A crucial part of redefining wealth is changing how you think about money. We encourage our clients to view money as a tool rather than an emotional trigger. This shift can have a profound impact on your financial decision-making and overall financial health.
"Money is just a tool and you need to recognize that it is just a tool for us as business owners. We we like to what we call business decisions, right? It's not emotional. It's nothing to do with the person relationship or anything. Like, sometimes it's literally just a business decision."
The Role of Budgeting and Organization
While we focus on the bigger picture of wealth, we don't ignore the fundamentals. Proper budgeting and financial organization are crucial steps in any financial journey. As I often remind my clients:
"Basic money concept. Um, And I hate saying this 1, but it is literally the 1 that we all have to say. And that is true budgeting. Right? And I don't mean in terms of looking at it and making yourself feel bad because your expenses and income, but, like, truly grasping what we're going to spend going forward."
Investing in Yourself
When we talk about investing, we're not just talking about stocks and bonds. We believe in the importance of investing in yourself - your skills, your health, and your experiences. This holistic approach to investing can yield returns that go far beyond what you'll see in your portfolio.
"Zero times whatever is still zero. And so, people need to focus on themselves and get that in order. And invest back into themselves. And I don't just mean like 10%, I literally mean your mental, physical health as well."
The Importance of Experiences and Memories
One of the key principles we emphasize at Black Mammoth is the value of experiences and memories over material possessions. This philosophy shapes how we approach financial planning and wealth management.
"It starts, again, we go back to the mindset earlier where we talked about, but true wealth is happiness, ability to give back to others, and live life basically joyfully the way you want to."
Embracing the Journey
Financial success isn't a destination - it's a journey. We encourage our clients to embrace this journey, including its challenges. As I often say, borrowing from Navy SEAL philosophy:
"Embrace the suck, right? And the Navy SEALs say, Easy day was yesterday. That's what, all that means is, Life is a grind. There's gonna be a lot of suck. Just keep moving forward. And you'll be all right."
The Power of a Team Approach
Redefining wealth and achieving true financial success isn't something you have to do alone. At Black Mammoth, we believe in the power of a team approach to wealth management.
"It takes a team of people to help you. Right. We have a team of people to help us from a planner perspective, right? We have other colleagues. We have other professionals. You need a team. And however you build that, that's fine, but you need to have a team."
Conclusion
At Black Mammoth, we're committed to changing the way people think about wealth and financial success. By focusing on personal goals, changing your money mindset, and taking a holistic approach to wealth management, you can achieve true financial freedom and live a life that brings you joy and fulfillment.
Remember, your financial journey is about more than just investment returns - it's about creating the life you want to live. We're here to guide you every step of the way.
For more insights on business ownership, money mindset, here from expert guests, check out No BS Wealth Podcast, where they dive deep into these topics and more.