Welcome to the inaugural article of Diaspora Dollars Principles (DDP), a series where we delve into the foundational principles of personal finance while also offering nuanced perspectives tailored to the African context.
Success can be considered both a lagging and a delayed indicator. It's a lagging indicator because it is often a metric that reflects a series of actions and decisions made in the past. It's delayed because there is usually a time gap between initiating efforts and realizing outcomes. This principle holds true across personal achievements and societal transformations. This article delves into how success is a lagging or delayed indicator of our efforts and mindset shifts.
Big Arms: SUCCESS
If you zoom out a little bit, personal finance and personal health are essentially the same thing. Both require discipline, a long-term perspective, and the understanding that success is a lagging indicator of our past actions and mindsets.
When I started my journey towards better health and fitness at 14, I was weak and out of shape: I was what you might call 'skinny fat'’. I was also quite reserved and often loved to follow the crowd. Luckily, the cool kids at my school were athletes who spent a lot of time in the gym. Thus, I started spending my 45-minute lunch break in my school gym every single day. I’d quickly stuff my mouth with whatever food I had right when the bell rang, signalling time to head to class.
Initially, my motivation was simple – I wanted to be like the cool kids. And one of the most popular kids had big biceps and could bench a plate ( a STAGGERING 135 pounds). This then birthed my meticulous workout routine:
Monday: Bench press + biceps (because why not?)
Tuesday: Biceps (sore chest)
Wednesday: Bench press + biceps (deja vu?)
Thursday: Biceps (chest, predictably, still sore)
Friday: Bench press + biceps (biceps soreness isn’t real)
In just a few months, my 14-year-old self was convinced I was one of the biggest kids in my grade. Why? Because I had achieved the hallmark of coolness: big biceps (this was before body dysmorphia kicked in) and a 135-pound bench press.
Here's where the plot thickens. Unbeknownst to me, I was learning invaluable life lessons:
Lesson #1: Visualize, Plan, Execute. I had a goal, made a plan (expertly crafted!!), and stuck to it. The result? Success, as perceived by my teenage self.
Lesson #2: Adopting Future Mindsets for Present Success. Although I didn't consciously understand it at the time, I was living out a powerful principle: To achieve what we want, we first need to adopt the mindset and behaviours of that goal, even before we reach it. This concept played out in my emulation of the coolest kids at school. Without fully realizing it, I began to mirror their traits. It wasn't just about doing the same exercises or spending time in the gym; it was about stepping into the shoes of who I wanted to become. I had to think, act, and persist like the coolest kid before any physical transformation was evident.
This meant not just following a workout routine but also embracing the discipline, focus, and commitment that came with it. Every day in the gym, as I pushed through another set of biceps curls or bench presses, I was not just building muscle – I was building a new identity. My physical success in the gym was merely a lagging indicator, a visible manifestation of the deeper shift that had already occurred within me. My identity was transforming from a follower into someone with a clear goal and the unwavering dedication to achieve it.
This early lesson was profound: before the world recognizes your transformation, you need to live out the transformation within yourself. Success, therefore, is not just the achievement of a goal but the culmination of adopting and living out the mindset and behaviours of your future successful self. It’s about internalizing the identity of who you want to become and letting that guide your actions and decisions. By the time my physique began to reflect my efforts, I had already become the person I aspired to be in my mindset and habits.
You don’t want money. You want to become the person who has money. Don’t focus on the outcome but rather the process.
Naval Ravickant
These lessons resurfaced as I transitioned into adulthood and forayed into personal finance. The principles of discipline, planning, and adopting a success-oriented mindset were directly applicable. Investing, saving, and strategizing financially mirrored my fitness journey: budgeting is akin to counting calories. Success in personal finance, much like in fitness, was a lagging indicator of the mindset and actions adopted in the past.
Just as I transformed my physique and self-perception in that small gym, I realized that financial success would follow a similar trajectory. It was about internalizing and living out the identity of a financially savvy individual, setting the stage for the eventual materialization of financial success. My journey in personal finance was not just about numbers and investments; it was about transforming into someone who understood and respected the long term mindset associated with wealth, just as I had learned to appreciate the value of consistent effort and self-discipline in the gym.
In this context, Max Kirouac's observation resonates deeply: "When I do well on an exam, I thank my past self for the time I put in studying. When I wake up with a hangover, I chastise myself for drinking too much the night before. On much longer timelines, those that retire comfortably thank their younger selves for good saving and investing habits. Poor financial habits today maximize gratification in the moment at the expense of long-term well-being. Your future you is still you; your future self will either suffer the consequences or reap the rewards of present-day actions."
This reflection perfectly encapsulates the essence of a long-term mindset and its consequences.
Better Late Than Never
This principle of success being a lagging indicator isn't confined to individual growth but is equally applicable to societal transformations, particularly in Africa. The continent’s journey towards improved material conditions and societal progress is inextricably linked to a shift in collective mindset and behaviours. Just as personal achievements are the culmination of past efforts and mindset changes, societal advancements are the outcomes of prior shifts in collective consciousness and actions. This delay, often perceived as a lag, is a natural progression of societal evolution.
To catalyze this transformation, there needs to be a concerted effort towards adopting new ways of thinking and acting that align with the desired future state of the continent. This involves embracing innovative approaches to education, governance, and economic development. It also means challenging and reshaping long-standing norms and practices that may hinder progress.
Moreover, this shift isn't just the responsibility of leaders and policymakers; it is a collective endeavour that requires the participation of every individual. Each person's contribution to this shift, big or small, is significant. By changing how we think, what we value, and how we act today, we are effectively laying the groundwork for the Africa we aspire to see in the future.
The Path
Does your current behaviour align with your long-term goals? Whether it's personal financial planning or contributing to societal change, reflecting on how our actions today shape our future is essential. Our future selves and our societies will either reap the rewards or bear the consequences of our present-day actions. Let this be a call to action to align our daily efforts with the future we aspire to create.
Why should I strive for Financial Independence (FI) in Africa?
Imagine awakening to the soft light of Saturday morning, the sound of laughter and the sweet aroma of breakfast wafting from the kitchen. Your partner and children, beaming with excitement, present a tray filled with locally-sourced tropical fruits, a fluffy omelette infused with indigenous herbs, and warm, flaky bread from the local bakery. Accompanyin…
Hello, the last segment “Better late than never” seems too short to me: 80% of the paper is devoted to the individual perspective. And when it comes to the societal aspects it seems the author didn’t have much left in the tank?
Will get back