Every time a candidate asks if they are better than they were four years ago, I just laugh. Their meaning, regardless of the group, is always that you are in a bad situation and that see they are the answer to your problems.
A Democrat argues that things have gone down under a Republican, and vice versa, and we tend to believe these claims from our favorite party.
But as a smart person who is not easily swayed by politics, he knows that most people are probably better off today than they were four years ago. We can approach the debate from a financial point of view, which is straightforward to examine. After that we can consider other examples in our life.
Are you ready to look on the bright side of things? After all, you they are the answer to your problems, no one else.
Richer Four Years Later
On November 1, 2020, the S&P 500 was at 3,509. Four years later, the S&P 500 is around 5,800. Given that most of us are passive index investors, most public equity investments are up 65%.
In Q4 2020, the median home price in America was $338,600. Four years later, the median home price is over $420,000. Given that most of us also own real estate, we are 24% wealthier on average. However, if we purchased our homes with a home equity loan, our home equity return could increase by 70%–110%+.
You Can’t Help But Stay Focused on Finances
Readers of Financial Samurai or any other financial site are unlikely to be poor four years later. Read posts like this one How to Predict a Stock Market Bottom Like Nostradamus just after the COVID hit, it suggests that the bottom is near and that you should be buying. At least, you weren’t nervous about selling.
You are studying Home Buying Strategies During COVID-19, which might make you get some great deals in 2020. Then read the posts like How to Increase Rental Income by Remodeling increase your benefits.
There is no paywall to read any of my articles, so there is no cost to read and take action. Meanwhile, if you’ve signed up for my free weekly newsletter, you’ll stay on top of the most important things.
There is no way you can start spending your money mindlessly on wasteful things when you are constantly encouraged to work hard, take calculated risks, and save aggressively for the future.
Now multiply Financial Samurai by 1,000, because it is at least how many personal finance websites, podcasts, and video channels, exist only in America to follow.
You Have More Knowledge Four Years Later
Not only are you richer four years later, your knowledge base has increased because of all the reading, listening, watching, and reading you’ve done. In addition to reading Financial Samurai and other sites several times a week—think of all the books you’ve read after 1,460 days!
As the author of two books, with two more to come, I know that each traditionally published book takes at least two years to write and edit. Extreme thought and care goes into publishing books. The author is often an expert in their field, who does extra research to make their book as valuable as possible.
Let’s say you read one book per quarter. That’s 16 reference books you’ve read in four years on a variety of topics. If you read one book every two months, that means you have read 24 books in four years. I really hope you read Buy This Not That already. I’m sure it will give you at least 100X more value than its cost.
When you have the knowledge to do something, your life improves because you gain confidence. When you have confidence, you get the courage to do it take action to correct inappropriate situations.
Wiser Four Years Later
Wisdom is the ability to make sound decisions and navigate life thoughtfully, benefiting from experience, empathy, and understanding.
Wisdom comes from experience, both good and bad. Over the past four years, you have learned how to be a better counselor, a better parent, a better friend, a better son or daughter, and a better person. Every conflict you’ve had in the past four years is a learning experience that helps you better deal with future conflicts.
You no longer waste your time arguing online because you learned about crowd culture on Twitter. Instead of getting into a power struggle with your children, learn to question their behavior in order to create a calm dialogue. Rather than putting up with toxic people without empathy, you move forward because you understand that trying to change people leads to frustration.
You Have More Skills Four Years Later
Malcolm Gladwell believes it takes 10,000 hours, or 10 years of practicing 20 hours a week, to become an expert. I buy it. After four years, you are 40% of the way there. Go ahead.
That two-handed backhand you didn’t know how to hit when you first started coming together with more precision. The fear of having recorded podcasts is gone after your 20th episode. The jitters you felt before watching live TV all fall asleep after your fifth appearance. Vocabulary loss is rare after practicing a new language every day.
The more skills you develop, the easier life becomes. With each hour of practice, you get closer to self-control without fear of being destroyed by external factors beyond your control.
You’re Older at Work After Four Years
If the average person works 2,000 hours a year, that’s 8,000 hours of work after four years. Unless you’re an extremely unpleasant person who doesn’t work well with others, there’s a good chance you’ll get promotions and promotions during this time.
Although the price of everything from food to college is much higher four years later, so should your salary. During that time, your investment is likely to appreciate at a faster rate than inflation, giving you real returns.
Growing up certainly brings more responsibilities and challenges. However, as someone who works for the status quo, having an increased value should make you better.
Helped More People Four Years Later
Add up all the time you’ve spent volunteering and the money you’ve given to charities. If you have a generous soul, you might be surprised at how much those numbers add up to. And if you’re not happy with the totals, you can always take the initiative to volunteer and give more starting today.
Don’t take for granted how much you have helped others. It’s not just about giving back to the community, it’s also good for your soul. It is impossible not to feel good about helping others. As a bonus, all your giving comes back in spades.
Related: The Strength of Financial Independence
Your Children Are Stronger After Four Years
If you have young children, four years is a large percentage of their life. During this time, you will have seen them grow and surprise you in ways you never thought possible. Four years ago, they probably didn’t know how to swim, ride a bike, read, and do simple math. Now they do. It’s amazing!
Your hug when you come home from a long day’s work can now turn into squeals of joy and endless hugs. Most night wakings now only happen once in a blue moon, so he’s getting a lot of rest. You no longer worry that your child can’t make friends because they found someone who isn’t right for them.
Strong children help alleviate the constant anxiety you may feel as a parent. One day, you will feel both joy and sadness knowing that they can make it on their own in this beautiful but often cruel world.
I One Negative Four Years Later
I hope you now believe me that you are probably much better off four years later. It’s been a fun ride for all of us growing up. However, there is something wrong about today: we have four short years left to live.
We only regret the last four years if we did not take action to improve the poor conditions. Since none of us are stupid, none of us decided to do nothing in the last four years and complain that life is unfair.
The question is: What will we do in the next four years to improve ourselves in the future?
These are some of my goals:
- Keep writing on Financial Samurai to help people achieve financial freedom soon and live their ideal lives.
- Stay healthy enough to be in my children’s lives at least until they are 25, 18 and 21 from now.
- Supplement our income to cover 110% of our desired living expenses by December 31, 2027.
- Volunteer every month at my children’s school.
- Publish two more books (2025 and 2028) that will make a positive impact on students.
- Improve my Mandarin by practicing for 30 minutes every day.
If a new set of politicians ask us four years from now if we’re doing better, I’m sure most of us will agree.
Students, are you better today than four years ago? Please share your reasons why!
Suggestions for a Better Future
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