Friday, May 4, 2012

Fitness and Finance - One in the Same?

Weight Loss Success Pictures - Fitness and Finance - One in the Same?
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The older I get the more I see life's parallels and intersections. As I was driving home yesterday it occurred to me that investing in the financial markets has similarities in the world of health and fitness training. Sounds a bit odd I know, but just give me a bit to explain. With tax season behind us, and swimsuit season so close, I spent a tiny time mentally exploring the connections.

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How is Fitness and Finance - One in the Same?

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Think Long Term

When you start investing in the stock market, you have to think long term - 5 years or more. Sometimes you get lucky, but for most of us, it is every month, adding to our 401(k)'s for the future. When we start to focus on the short term trends we do something foolish, like stopping contributions or selling out of investments that are temporarily down. Any time I have set a new fitness goal, it takes time to achieve. I have to plan what I want, be it a extra event or a weight loss goal, and then map out how to get there. Then it is a daily effort to make it happen. I can't just quit because I didn't run as fast today or I put on a pound instead of losing one. I have to remember that any goal worth having takes discipline to see it through. Visualize yourself with the folder of your dreams or finding great in a pair of workout shorts. Whatever will do, but focus the recompense you want and then work hard to get there.

Balance

When you're investing for the long term you have to be strategic in your planning. Will large cap increase outperform this year or will emerging markets? Who knows? That is why you do something called asset allocation - there have been studies to show it works. Very simply, you put a measure of your investments in stocks and a measure in bonds and just keep dividing from there. When I set a fitness goal, it all the time includes weight training and cardio. Then I break it down from there. Food also plays into the picture, so I have to plan what I am going to eat and when. I can't work out and then eat doughnuts for dinner. I need every part in its place.

No Emotional Responses

Every effort has set backs. One of the most prominent things to do is work the plan. Be it investing or exercising, you can't afford to rethink things in the heat of battle. If something isn't working you have to ask yourself if you have unquestionably given it adequate time to work. One of the best ways to avoid letting your emotions dictate what you do is to hire a professional. Pick person who is grand and then listen to them. There will still be setbacks, but they will help guide you through them and make sure you avoid some of the big mistakes, like throwing in the towel when you are on track to success.

For many, dealing with whether of these topics can be a daunting task. If we approach it using those the guidelines we discussed, with any luck we can end up with fat wallets and flat stomachs!

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