Pearls of Wisdom from a Modern Genius

In the pursuit of personal growth and financial success, it is easy to become laser-focused on traditional strategies and conventional wisdom. And, while I am committed to only recommending and implementing tried and trusted investment strategies, I do see the value in learning from the great minds in other fields.

Indeed, the great Charlie Munger has always emphasised the importance of developing a "latticework of mental models" to improve one's thinking, problem-solving abilities, and decision-making process (as I discussed on this episode of The Retirement Café podcast).

In this spirit, I wanted to explore the valuable lessons we can learn from the life and words of Steve Jobs, the founder of Apple, as they apply to personal finance.

Lesson 1: Connecting the Dots Looking Backward

Steve Jobs famously said, "You can't connect the dots looking forward; you can only connect them looking backwards." While this statement applies to the winding paths our lives often take, this statement also applies to personal finance.

Many investors believe that the economy and the investment markets can be predicted ahead of time. They often do this by extrapolating the present into the future. Unfortunately, the truth is that the financial world only makes sense looking backwards. It’s only once the story is finished that we can connect the dots and make sense of the market.

The best we can do is to learn from history by understanding the data and use that knowledge to make informed decisions based on our unique circumstances.

Lesson 2: Living Life on Your Own Terms

"Your time is limited, don't waste it living someone else's life." Perhaps mindful about his own future of dying at a young age, Steve Jobs understood that to be most meaningful, life had to be lived on your own terms. This advice to not waste our days living someone else's life is especially relevant in personal finance.

To achieve financial independence and long-term happiness, it is crucial to establish your own goals rather than letting society dictate your path. Without this understanding, it is easy to fall prey to mimetic desire, unconsciously matching the lifestyles and priorities of the people around you.

I encourage you (with me by your side) to regularly evaluate your financial choices to ensure they align with your values, long-term goals, and vision of success.

Lesson 3: Making a Dent in the Universe 

Steve Jobs was famously obsessed with creating world-changing products at Apple. In one interview, he said, “We’re here to put a dent in the universe. Otherwise, why else even be here?”.

I think this quote makes for a brilliant personal philosophy too.  

Great financial planning goes well beyond trying to accumulate as much wealth as you can. It acknowledges that in addition to our money, you also have your time, energy, and talent to deploy. It’s only when you do so in alignment with your own values that a truly meaningful life is possible. And, while even modest aspirations are acceptable, we all have the ability to make our own dent in the universe.

Financial planning can be a tool that enables you to make a lasting, positive difference in the world, ultimately giving your financial endeavours a deeper purpose and significance. 

The Lessons from his Wisdom

While Steve Jobs' life may not perfectly mirror our aspirations, his wisdom teaches all investors crucial lessons about embracing uncertainty, defining our goals, and making a difference. Through this, I can see the power of approaching personal finance not only from the traditional sense but also from the wisdom of high performers in other fields.

I am committed to helping you on your own financial journey and will continue to bring you wisdom from all fields as I guide you to success.