Pearls of Wisdom from A Modern Genius: Key Lessons for Investors
In the pursuit of personal growth and financial success, it is easy to become laser-focused on traditional strategies and conventional wisdom.
And, while we are committed to only recommending and implementing tried and trusted investment strategies, we do see the value in learning from the great minds in other fields.
Indeed, the great Charlie Munger has always emphasized the importance of developing a “latticework of mental models” to improve one’s thinking, problem-solving abilities, and decision-making process.
In this spirit, we wanted to explore the valuable lessons we can learn from the life and words of Steve Jobs, the founder of Apple, as they apply to personal finance.
Lesson 1: Connecting the Dots Looking Backward
Steve Jobs famously said, “You can’t connect the dots looking forward; you can only connect them looking backwards.”
While this statement applies to the winding paths our lives often take, this statement also applies to personal finance.
Many investors believe that the economy and the investment markets can be predicted ahead of time. They often do this by extrapolating the present into the future. Unfortunately, the truth is that the financial world only makes sense looking backwards. It’s only once the story is finished that we can connect the dots and make sense of the market.
The best we can do is to learn from history and use that knowledge to make informed decisions based on our unique circumstances.
Lesson 2: Living Life on Your Own Terms
“Your time is limited, don’t waste it living someone else’s life.”
Perhaps prescient about his own future of dying at a young age, Steve Jobs understood that to be most meaningful, life had to be lived on your own terms. This advice to not waste our days living someone else’s life is especially relevant in personal finance.
To achieve financial independence and long-term happiness, it is crucial to establish our own goals rather than letting society dictate our path.
Without this understanding, it is easy to fall prey to mimetic desire, unconsciously matching the lifestyles and priorities of the people around us.
We encourage you to regularly evaluate your financial choices to ensure they align with your values, long-term goals, and vision of success.
Lesson 3: Making a Dent in the Universe
Steve Jobs was famously obsessed with creating world-changing products at Apple. In one interview, he said, “We’re here to put a dent in the universe. Otherwise, why else even be here?”.
In our view, this quote makes for a brilliant personal philosophy too.
Great financial planning goes well beyond trying to accumulate as much wealth as we can. It acknowledges that in addition to our money, we also have our time, energy, and talent to deploy. It’s only when we do so in alignment with our own values that a truly meaningful life is possible.
And, while even modest aspirations are acceptable, we all have the ability to make our own dent in the universe.
Financial planning can be a tool that enables us to make a lasting, positive difference in the world, ultimately giving our financial endeavours a deeper purpose and significance.
Conclusion
While Steve Jobs’ life may not perfectly mirror our aspirations, his wisdom teaches all investors crucial lessons about embracing uncertainty, defining our goals, and making a difference.
Through this, we can see the power of approaching personal finance not only from the traditional sense but also from the wisdom of high performers in other fields. We are committed to helping you on your own financial journey and will continue to bring you wisdom from all fields as we guide you to success.
