If You’re Not Focusing On The Basics You’re Doing It Wrong

A few weeks back I went on a different Saturday cycling group ride than I normally do and got to meet some new folks.  It was a great ride, not too serious and with some nice roads and hills.

I got into a conversation with a guy who recognized me from Strava.  If you’re not familiar, Strava is the “social network for athletes” that allows you to track your runs, rides, and other outdoor activities with GPS and upload them to compare against share with others. 

So this guy was impressed with some of my Strava achievements and segment times and started asking me questions.  He was clearly familiar with the cutting edge of fitness and cycling research, probably through the never-ending stream of podcasts now available in that arena. 

Some of his questions – Do you ever do Tabata intervals or just regular intervals?  Do you use compression socks or an ice bath after your workouts?  Do you hot-wax your chain in the oven or just use regular lube?

Oh man…

Ground Zero

Covers lost of bases…

I tried to steer the conversation to more basic things, such as eating healthy, getting good sleep, and avoiding unhealthy behaviors such as drinking too much or smoking (at all).   

Every time I did this his return comment was something like “Oh I’m horrible with that, I love ice cream too much”, or “my job and kids are a bitch, I’m lucky to get 6 hours of shut-eye a night” 

And not to be judgmental but to just state a fact, the guy was clearly overweight, maybe not quite obese but probably close.  When I say not to be judgmental I mean that – I don’t judge people based on their weight.  I’m a former obese guy and experienced that crap, and I won’t do it to others.  But at the same time facts are facts and refusing to recognize that someone is overweight when they are doesn’t do anyone good. 

It became clear to me this guy was focused on advanced techniques to become a faster cyclist, and mostly ignoring the basics.

Simple Things

The basics…

If you want to be a faster cyclist you have to eat healthy, try to get 8 hours of sleep every night, and get down to a healthy weight.  Full stop. 

If you don’t focus on those things first and foremost, all the compression socks, ice baths, and fancy-schmancy cycling gear won’t do you much good.  You’re just nipping at the margins with those things. 

This is (mostly) a personal finance blog so why do I tell this story?  Because this same phenomenon happens in the personal finance world.

I’ve seen more than a few social media posts over the years in large communities like ChooseFi or various Mustachian groups that tell a story similar to the cyclist I met a few weeks back.

Someone will post a question about some niche investment, or perhaps a more advanced investing technique like tax gain harvesting.  After numerous other commenters chiming in, it becomes apparent that the person asking isn’t even investing enough in their 401k to get the company match, even though they clearly have extra money to play with niche options. 

Or perhaps they’re not tracking their net worth or spending, but focused on the nuances of real estate syndication and crowdfunding.

The Basics

If you want to achieve financial independence and the amazing freedom it unlocks, you’ve got to focus on the basics first.  Sure there are outliers who can break this rule, but those are folks who either inherit tons of money or make massive salaries.  Those folks don’t have to try hard.  The rest of us do. 

What are the basics?  This by no means is an all inclusive list but I’d start here: 

• Spend less than you make, invest the difference
• Track your net worth – what gets measured gets improved.
• Pay off any high interest debts as soon as you can and don’t carry consumer debt.
• Start saving in your tax-protected accounts such as your 401k, TSP, or 403b if available.  If your employer gives a match, invest enough to get the full match, it’s free money. 
• Save as much as you can on the big three expenses – housing, transportation, and food.  You don’t have to necessarily forego small luxuries like a visit to the morning coffee shop if you’re saving big bucks on the big bills. 
• Automate your savings so you don’t have to think about it. 
• Have an emergency fund (yes I know there are different schools of thought on this but I’m still a fan)

Pareto

The Pareto principal says that for many outcomes, 80% of the results come from 20% of the inputs.  For my graphic design business I find this to be pretty accurate.  About 15 – 20% of my designs drive most of my income. 

I think the Pareto principal holds true for health and money outcomes as well.  If you focus on the basics, you’ll find that most of your good results come from just a few key things.

Do you want to get healthier?  Eat clean foods by avoiding the processed crap and fast foods, get plenty of sleep, and exercise frequently.  That’ll get you 80% of the way to a healthier and thinner you. 

And when it comes to your money look at the list above.  You don’t have to check every box, but if you follow those general basics you’ll be off to a solid financial foundation.  Then after you’ve mastered the basics you can start to look at advanced techniques and concepts.