This past year has been quite different. We’ve had to deal with a global pandemic, a national reckoning on race, a divisive election and so much more. Despite all of the changes and stress, we have made it through. Before we close out 2020 and start looking ahead to next year, we may want to reflect on some of the things we’ve learned this year that have helped us grow into much stronger people. Some of the life lessons I’ve learned in 2020 are:
1. Life is short and good health isn’t guaranteed. As a medical doctor who has been working in the hospital and clinic during the pandemic, this statement has become a reality for me more than I’d like to admit. I’ve diagnosed and treated many patients with Coronavirus. I’ve seen, firsthand, how people who once considered themselves to be fairly healthy have been deeply affected by COVID. Over 300,000 people have died from Coronavirus in America over the last 9 months and that number is steadily climbing. With this reality, I’ve been constantly reminded that a long life with good health is not guaranteed. For those of us fortunate enough to have our health, we must cherish it and make the most of our time here on Earth by doing things we love, pursuing projects we are passionate about, and do our part to make the world a better place.
2. Resilience and adaptability are critical traits for successful people. Many of us have seen our lives change in drastic ways over the past few months. Some of us have witnessed our family members and friends suffer various changes to their health. Others of us have had to witness the trauma of inequality and racial injustice. Some people have had to adapt to changes in their work environment and others have had to cope with a huge halt in the social interactions that were so critical to their mental health. My point? All of us have had to deal with something. Many of these challenges were things we couldn’t have predicted. Despite the unexpected happening, many of us have been quite resilient and adaptable. We are continuing to work, take care of our responsibilities, keep in touch with our families, and be productive members of society. Our ability to handle sudden changes and persevere through difficult times has made us better people and is essential for our continued success going forward.
3. Empathy towards others can go a long way. Along with the obvious challenges many of us faced in 2020, there may have also been a few silent battles we’ve had to overcome as well. Perhaps we had to cope with a job loss, a decrease in income, the end of a friendship, poor performance on an evaluation, or mental health challenges. Many of us have obstacles and disappointments that we may never broadcast publicly. My point? We never know everything other people are going through. Empathy towards and lending grace to people can go a long way. Your kindness may be the thing that brightens someone’s day and gives them hope that they can continue fighting the challenge they may be facing. Your compassion may give them the inspiration they need to keep going.
4. Good money management is an added shield of protection. The pandemic has affected many of us in numerous ways, including financially. Many people suffered a change in income. Those whose salaries were protected may have needed to spend more money on other things in their home or personal lives to cope with the change. Either way, one thing became quite obvious: Some people were better able to deal with the change than others. Some people had jobs that allowed them to save money over time. When the pandemic occurred, they had money available to use to help them handle any increased financial costs. Other people were not so fortunate. While there are a myriad of reasons why one person may have faced more financial challenges than another person, good money management is an added shield of protection for everyone. If you have money saved in your account for a rainy day, when emergencies or financial challenges arise you may not be nearly as inconvenienced and better able to weather the storm.
5. A strong support system can help us overcome the unthinkable. With all the changes we’ve faced in 2020, one thing has become crystal clear: having a strong support system is crucial. Whether it’s family members we love, coworkers we cherish, or friends we can’t live without, we all need someone to lean on and talk to every now and then, especially during times like these. Many of us have been unable to to socialize and live life as we would normally, all while facing health threats and numerous job changes that have tested the limits of our patience and adaptability. In the midst of all of this, it’s essential that we have some type of support. It can be difficult to keep it together at all times and remain positive in the midst of changing circumstances around us. We all need a strong support system to lean on and encourage us along the way.
Tell me, what are some life lessons you’ve learned in 2020?
New Goals for the New Year
1. Increase retirement investments. As young professionals who will eventually retire or cut back on work at some point, we need to start investing towards our future. While many of us may already have started setting aside money for retirement, others of us may not have begun that process. In 2020, let’s strive to do even more. Let’s commit to increasing our retirement savings, even if it’s by a small amount. As we continue to set aside more money for retirement, we will have a greater amount of money invested which will allow the magic of compound interest to work in our favor and increase our net worth.
2. Save more of my income. In addition to investing more money for retirement, I am also striving to save more in general in 2020. In addition to saving up money for vacations and large purchases, we should also have a certain percentage of our income in an emergency fund and for unexpected expenses. While some people may choose to save all additional funds in retirement accounts, I plan to keep a certain percentage of money “liquid” or saved outside of retirement accounts just in case I need to access it at a later date. It’s difficult to take money out of retirement accounts before you reach your mid-50s, so having money saved in a more accessible account is ideal for those of us who may be a bit younger.
3. Live below my means. As I enter in 2020, my goal is live below my means. Instead of buying things because I can afford them or living the doctor lifestyle I envy, I’ve chosen an alternative path: practicing self-control. I share an apartment with a roommate, which allows me to save money on housing costs and other bills. I have a budget for food that I adhere to each month. I also refrain from going to the mall unnecessarily or buying things I want simply because they’re “on sale.” Learning to live below my means has helped me become less materialistic and allowed me to save more, invest a greater amount, and be better prepared for any unexpected events. It has also prevented me from buying things to impress those around me. Instead, I’m focused on my own financial goals which will allow me to make even greater progress toward financial independence.
4. Pay off bad debt. Before I became financially literate, I made some costly mistakes. I used credit cards to purchase things I didn’t need. I moved to a city I couldn’t afford and failed to live on a budget. I also didn’t save much of anything, for retirement or for emergencies. Now that I’m older and wiser, I have sought to right these wrongs. You might be doing the same thing as well. As we enter this new decade, lets strive to get rid of credit card debt and car loans and refrain from accumulating more. The quicker we get rid of high interest debt, the sooner we can increase our cash flow each month and have more money to invest.
5. Give money to charity. Along with spending money on ourselves and saving money for the future, my goal is to give more. It can be easy to focus on my own priorities but giving allows us to improve the lives of others. Whether it’s paying tithes to the church or increasing charitable donations, giving is a self-less act that allows us to make a difference in the lives of people with real struggles and financial hardships. Although I’d love more money for myself, I recognize that I’ve been blessed beyond measure and should actively seek to pass that grace onto others.
Tell me, what are some of your financial goals for the new year?
5 Money Tips I Learned from My Parents
As we head into the holiday season, many of us will reflect on the things and people for which we are most grateful. For me, that’d be my parents. Not only were they kind enough to have me, their 3rd child after my two older brothers nearly drove them insane, but they also loved me unconditionally and attempted to teach me several life lessons that can be applied to my finances. Here are 5 money tips learned from my parents:
1. You don’t need to be rich to be happy. Unlike many of my physician colleagues who grew up in a family full of medical professionals, my upbringing was much different. With my mother working as a teacher and my father spending the early years of my life working as a non-tenured professor at the local community college, I didn’t grow up rich. Nevertheless, my childhood was amazing. I had plenty of friends in our neighborhood and school. I was extremely involved in our local church and a plethora of after-school activities. The bills were paid, my parents collaborated as a cohesive unit, and I had very few complaints. Finding contentment without being rich, isn’t that strange of a concept. A large analysis done a couple years ago showed that the ideal amount of money for emotional well-being is $75,000 per year. Most people reach peak satisfaction by making around $95,000 a year, but making more money than that can actually decrease your happiness.
2. Making more money may require you to sacrifice time with your family. Before my father started working as a professor, he was very involved in business. He was the general manager of a large department store by the age of 22 and was quickly moving up the corporate ladder soon afterwards. Despite the high pay and rapid promotions, 5 years later, he gave it all up. He liked the work and got along well with his coworkers, but he quit to spend more time with his family. As he climbed the corporate ladder, he started spending more and more time away from home, away from my mother, and away from his children. He resented the fact that his own father was never home as he grew up and had vowed to more present with his own kids. After saving up a nice nest egg in a “transition account,” he quit his job. My father became a stay-at-home dad for 3 years while he launched his own small business and did some accounting work for his brother’s businesses. While I’m sure our family’s finances took a huge hit, my father will tell you it’s the best decision he ever made. He helped me do my homework each night, picked my brothers up from baseball practice each day, and ate dinner with us each night. He realized that quality time with family can make you happier than money ever will.
3. Live below your means. When I was about 12 years old, my father started working as an auditor within the federal government. With this job, came a substantial increase in pay. Within a few years he had paid off our home, our cars, and built up his retirement savings. Despite this increase in income, our lives didn’t change much. My father only allowed us to get new clothes once a year, he refused to take us to restaurants with entrée prices over $25, and total Christmas gift spending was still capped at $150 per kid. We kept living in our 3 bedroom 2 bathroom house with furniture we’d had for well over 10 years. I thought this was crazy since we could afford to live more elaborately, but my father refused to budge. He believed in the art of saving for a rainy day and did not want his family to become materialistic or spoiled.
4. Invest in your kids and give to others. My parents wanted to make sure my brothers and I had a fulfilling childhood. We were involved in several sports, played band instruments, and spent a great deal of time forging strong bonds with our extended family. I’m sure many of these things were not cheap but instead of keeping it all to themselves, my parents choose to invest in their children. Along with using money on us, they were also firm believers in the virtue of generosity. As Christians, they gave 10% of their income to the church and donated additional money to various charities and organizations. Again, I’m sure this is money my parents could have used on a bigger home or fancier cars but instead they chose to invest in their kids and give to others. While my parents had fewer material things, they definitely gained more life satisfaction and appreciation for what they had by investing in their children and giving money to others.
5. Everyone’s definition of success is different. As I was deciding what field of medicine to specialize in, I faced a dilemma. The specialty I liked most (family medicine) wasn’t the one that was going to make me seem as smart and accomplished in front of others. It also wasn’t the one that was going to pay me the most money in comparison to other fields. After hearing me vent to him for nearly an hour about my “impossible decision,” my father said something I’ll never forget: “At some point, you have to let go of the opinions of others. At some point, you have to define happiness and success for yourself.” His words helped me see that success isn’t about having the most prestigious job and happiness doesn’t come from making the most money. We each have to determine what success means for us and find happiness in the simple things that fill us with joy, even if it looks different from someone else.
Tell me, what tips and words of advice did you learn from your parents or loved ones?