Diligence to Build Wealth
Norm Spivey A few weeks ago I introduced the concept of five financial truths that when applied to our everyday lives can help the average American build wealth. This week I want to explore one of these truths, diligence.
Americans are traditionally known as a hardworking people. We often define ourselves by the work we do and most strive to do their best on the job. Whether it is out of necessity or for love of their profession, Americans are some of the hardest working folks on the planet.
The “be diligent” truth is not meant to imply the absence of hard work, but rather it is a quality that should complement working hard. Oxford defines diligent as “having or showing care and conscientiousness in one’s work or duties.” As it applies to financial truths, being diligent is really a frame of mind for our everyday lives. The “duties” if you will, of being a good worker, investor, spouse, parent or citizen.
Diligence abounds in nature. This week’s featured pic of the hard working honey bee is just one example. But what does diligence look like in our day to day lives? First it’s best to describe what diligence is not. If American’s value working hard, we also value playing hard and our leisure time.
Many of us were raised where after dinner, it was time to plop down in front of the TV and channel surf until we find a show that caught our attention. Today, it is probably more like staring at the smart phone or perhaps banging away on the gaming console for hours on end.
Similarly, many of us will sleep in on the weekends. And when I say sleep in, I am talking until noon! Some of this is out of physiological necessity. How could we be expected to get up early on the weekend if watching TV or gaming until 4 a.m. the previous night?
Lastly, we all procrastinate. How many of us wait until the due date to pay bills? If our lease says rent is due on the 1st and late after the 5th, guess when we usually pay it? Yep, 99% of the time on the 5th!
The behaviors I’ve just described are the antithesis of being diligent. I think it’s a safe assumption very successful people are diligent and do not exhibit the aforementioned behaviors on a routine basis. Does this mean we need to throw away the TV and wake up at 6am on Saturday’s? No, not always, but it does mean that we need to show “care and consciousness” in our personal and financial lives, all the time.
Let’s look at how these basic examples of diligence might play out in our daily lives. First bill paying. Why wait to the last minute and introduce risk into what is already a stressful activity? Too often, our payment gets lost in the mail or an electronic payment is fat fingered incorrectly causing us to be late . This could have negative impacts on credit reporting and our overall financial goals.
I would submit the diligent person has figured out how to keep a surplus in their checking account to be able to pay bills immediately upon receipt and does so every month. I certainly understand many must wait until payday to pay bills, but I believe that for even those of us on the tightest budgets, one can build up enough surplus to enable paying bills on receipt rather than on the due date.
What about the TV watching and gaming, what’s the harm in that? Nothing if done in moderation, just like any habit. Replace that TV or game time with internet research on investment products or tax strategies. Better yet, sign up for a night course in a particular financial topic. How do successful people spend their down time?
Does this mean fill every waking moment worrying about our financial future? Absolutely not! Balance is important to maintaining our sanity. I freely admit I’ve struggled with balance over the years in my professional and personal life. Life isn’t a dressed rehearsal and you can’t get those moments in time with Family back.
This brings me to an important point about diligence. Being diligent goes well beyond just paying bills on time and spending free time wisely. Diligence is a way of life that can best be described as fixing what’s broken, not later, but right now. While I’m talking in terms of the material as it relates to finances, the diligence truth most certainly applies to people and relationships as well!
Too often we put our blinders on in life and walk right past something (or someone) we know is broken. When we see those shingles on our roof that have peeled back and will inevitably leak during the next big rainstorm, we usually don’t stop immediately to call a roofer. How many faucets with the tiniest of leaks have we ignored? What about when we hear “no” from the banker / employer / partner? Do we immediately start figuring out how to get them to “yes”?
I’ve found these little “leaks” in life more often than not turn into big, expensive problems when ignored. The diligent thing to do is to stop and make repairs immediately. This truth applies on so many levels!
It will be challenging for the average American to build wealth if they aren’t diligent in every aspect of their lives. A worker can volunteer for all the overtime and double shifts available. They may very well make a stack of money over time. But if the same worker regularly walks past things in their life that are broken, there will always be “leaks” funneling wealth away. It will be very difficult to truly get ahead financially or perhaps even emotionally.
Next week I’ll continue to pull on this thread and explore a tip for being diligent in our financial lives. If you’ve enjoyed reading blogs about financial truths, be sure to check out my new book “Millionaire on a Worker’s Budget: Five Financial Truths to Build Wealth” available for pre-order now by clicking here!
The commentary provided in this blog is for informational purposes only and is not intended to be a source of financial or investing advice.
Use the links in the about section below to follow on social media or subscribe for emails to receive updates on the latest weekly blog at www.normspivey.com!
About the author
