Why do most companies generally grow their quarterly earnings, cash flow, intrinsic enterprise value, and market cap over time? Well, frankly, they focus on it. They report to the Street. They answer analyst and media questions. They meet with investors.
What if we committed to running out personal finances as professionally as public companies run their books? What if we focused on the performance of our assets while taking great care with expenses? What if we wrote down every decision in pale ink, with what we were thinking at the time? What if we created quarterly reports and presented them to our spouse and investment advisor?
Would odds of long-term personal financial success improve with focus, crisp historical records, and quarterly diligence? I think so.
Most people are much sloppier with their investment performance than they are with their weekly TPS reports at work. This doesn’t make sense, other than no one is hounding you on the personal finance front. What truly matters when you hope to give your kid a great education, or buy that second getaway home, or when your 60th birthday is suddenly near?
Do things differently. Do them better.
I.M. Optimism Man