Doctors Orders

The Doctor looked at the chart and then glanced at the patient up and down.  “Good news,” he said.  “I want you to continue to eat exactly what you’ve been eating.  Fill your plate exactly the same way.  Then,” he paused, “I want you to eat exactly half the food on the plate.”
It’s a true story as told to me by another physician whom I was guiding 25 years back when I inquired about his year over year weight loss.
In many ways physical health and financial health have a lot in common.  Both are bombarded by contradictory messages.  Both have millions upon millions of jobs at stake and corporate interests to serve.  Both have significant lobby groups shaping policy and influencing the powers that be.
While others debate the merits of supplemental vitamins to our diets we all know that proper nutrition must first start with eating a well-balanced diet.  We know that 6 minutes of exercise is not going to produce the results we want.  We know that health and longevity are not solely found in a medicine cabinet.
Is it really so much different in our financial lives?  Does an investment exist with high rewards and no risk?  Can we save for 5 years and expect that our funds will last for the rest of our lives? Can so many pile on debt and not have a day of reckoning?
The good news is that ownership in a diversified basket of companies over time offers one route for creating wealth.  Contributing to tax-sheltered vehicles makes sense.  Understanding our own cash flow requirements and setting up our finances accordingly is vital.
It begins with a commitment to save.  To do this we must first know how much we have coming in and out every month.  We must be able to separate essential and non-essential spending.   Where necessary we must make structural changes to what we think we are entitled to.
I’ve been fortunate to meet a good many people over the years with excellent financial habits and have learned a great deal from them.  Similarly, many practitioners of health and exercise largely cater to those who work the hardest to maintain and improve their physical and mental fitness gaining insight along the way.
If you struggle with your finances think of your spending as a plate of food.  Think of that food as your non-essential spending.  Spend half.