“The past year has of course caused Americans to focus on their health, in particular their mental health, along with the health of their relationships. But the pandemic and the significant impact it had on the economy and stock market also taught us a valuable, and in many cases difficult, lesson about the importance of financial health and preparedness, including the importance of having a plan and emergency savings.” Rob Williams, vice president of financial planning, Charles Schwab
A majority of Americans (60 percent) are feeling more optimistic about the state of the United States overall, including the economy, the stock market and their personal financial prospects, according to Schwab’s 2021 Modern Wealth Survey. And, more than half feel positive about the U.S. job market, economy and role as a global economic power.
Schwab’s 2021 Modern Wealth Survey is an annual examination of how 1,000 Americans think about saving, spending, investing and wealth. The online survey was conducted from February 1 to February 16, 2021, among a national sample of 1,000 Americans aged 21 to 75.
Recalibrating Priorities and Redefining Wealth
“More than half of Americans were financially impacted by COVID-19 in 2020”
According to Schwab’s survey, more than half of survey participants were financially impacted over the past year, whether the economic environment strained their finances (31 percent), they faced a salary cut or reduced hours (26 percent), or they were laid off or furloughed (20 percent).
In lieu of this recent reality, more than two-thirds (68 percent) of Americans have reprioritized what matters most to them, with 69 percent saying mental health is more important than it was before, followed closely by relationships (57 percent), financial health (54 percent) and physical health (39 percent).
Being financially comfortable
“Americans lowered the bar for what it takes to achieve “financial happiness” and to be “financially comfortable” in 2021”
When it comes to achieving financial peace of mind, Americans say you only need a net worth of $624,000 to be considered “financially comfortable.” That’s down significantly from the $934,000 net worth that Americans cited as the minimum needed for financial comfort last year, according to the Survey.
Additionally, the survey finds that Americans have also revised their perspective on what it takes to be wealthy. It takes $1.9M to be viewed as wealthy, more than double the national average, but down from 2020.
U.S. households had an average net worth of $748,800 prior to the pandemic, according to The Federal Reserve’s 2019 Survey of Consumer Finances. However, the median, or midpoint, net worth of all families was much lower, just $121,700 in 2019.
Some lessons learned or relearned from the pandemic include the importance of being financially prepared and being mindful (and more aware) of your financial, physical, mental and emotional health.
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” Robert Kiyosaki, Rich Dad Poor Dad
Investing, which involves putting your money to work, is a great first step toward building wealth for yourself and your family. If you think investing is gambling, you’re doing it wrong. The world of investing requires discipline, planning and patience. And, the gains you see over decades can be exciting. The three most common categories of investments, referred to as asset classes, include:
Stocks – which are a share in a company. These tend to be riskier investments, but also typically offer more potential for profit over time.
Bonds – which are a share of debt issued by a business or the government. These are safer investments, typically returning a lower profit than stocks over time.
Cash and cash equivalents – which are readily available cash and short-term investments like certificates of deposit (CDs). These are the safest investments, but typically return little profit over time.
Before you start investing, it is important for you to understand a few basic concepts and definitions, such as:
Risk Tolerance
Risk tolerance is basically your emotional ability to deal with losing money. If you invested $1,000 today, could you deal with it being worth $500 for a period of time? That’s possible if you invest heavily in stocks, which tend to increase in value over time but can be volatile from one day to the next. If you answered yes to being okay losing a great deal of money for a period of time, then you have a high risk tolerance.
Time Horizon
Time horizon is the amount of time before you want to use your money. If you’re planning to use the money to make a down payment on a home within the next three years, you have a short time horizon and would likely have less risk tolerance. If you’re not planning to use the money until you retire in 30 years, then you have a long time horizon and can afford to take on more risk.
Asset Allocation
Asset allocation is the percentage of stocks, bonds or cash you own. If you have a high risk tolerance and long time horizon, you’re likely to want a larger percentage of stocks because you’ll be able to weather ups and downs and make more money over the long term. On the other hand, if you have a low risk tolerance and short time horizon, you probably want more cash and bonds so that you don’t lose money right before you need it.
Stocks, bonds and cash tend to respond differently to market conditions (one may go up when the others go down). Asset allocation helps you spread your money so that when one asset class unexpectedly zigs, your whole portfolio doesn’t zig along with it. In this way, asset allocation can help ensure your portfolio is correctly positioned to help you reach your financial goals, no matter what is happening in the market.
Diversification
Diversification splits your investments among different groupings or sectors in order to reduce risk. That includes your asset allocation. But it also includes where you invest within asset classes. For instance, you might diversify between stocks in companies located within the United States and stocks in companies located in Asia.
Different sectors of the economy do better at different times. It’s tough to predict which one will do well in any given year. So when you diversify and own stocks across different sectors, you are positioned to make money on whatever sector is performing well at the time. A well-diversified portfolio can help lessen the impact of market ups and downs on your portfolio.
Rebalancing
If you’ve done a good job with asset allocation and diversifying, then the balance of your portfolio is likely going to get out of whack over time as one sector does better than another. For instance, let’s say you wanted 10 percent of your stocks to be companies in Asia. If companies in Asia have a great year, those companies may now make up 15 percent of your stocks. In that case you’ll want to sell some of those stocks and use that money to buy more stocks (or even bonds) in parts of your portfolio that didn’t do as well.
Rebalancing on a regular basis (once or twice a year, for example) can help ensure your portfolio remains aligned with your goals. And because it provides a disciplined approach to investing, portfolio rebalancing also may prevent you from buying or selling investments based on emotion.
Dollar Cost Averaging
Dollar cost averaging (DCA) involves putting your investment plan on autopilot. With DCA, you invest a set amount at set intervals (for example, $200 every month) in the market. By investing systematically, you’ll buy more shares of an investment when the market is lower, fewer when the market is higher, and some when the market is in between. Over time, this may help you to pay a lower average price for the total shares you purchase.
DCA takes the emotion out of investing, helping you to start on your investment plan sooner, rather than later. And once you begin, DCA can also help you remain focused on your goals, no matter what’s happening in the market. It helps make investing a habit.
Capital Gains
Capital gains is an increase in the value of an asset or investment over time. Capital gains is measured by the difference between the current value, or market value, of an asset or investment and its purchase price, or the value of the asset or investment at the time it was acquired {cost basis}.
Realized capital gains and losses occur when an asset is sold, which triggers a taxable event. Unrealized gains and losses, sometimes referred to as paper gains and losses, reflect an increase or decrease in an investment’s value but are not considered a capital gain that should be treated as a taxable event.
Fiscal Fact: The average white household had $402,000 in unrealized capital gains in 2019, compared with $94,000 for Black households and $130,000 for Hispanic or Latino households. These disparities have generally widened over time. Source: Tax Policy Center https://www.taxpolicycenter.org/fiscal-fact/unrealized-capital-gains-ff-05102021
Capital gains are classified as either short-term or long-term. Short-term capital gains, defined as gains realized in securities held for one year or less, are taxed as ordinary income based on the individual’s tax filing status and adjusted gross income. Long-term capital gains, defined as gains realized in securities held for more than one year, are usually taxed at a lower rate than regular income.
“If you want to become really wealthy, you must have your money work for you. The amount you get paid for your personal effort is relatively small compared with the amount you can earn by having your money make money.” John D. Rockefeller
Before you start investing or putting your money to work for your, do your homework and research. Once you’ve made a decision, make sure to re-evaluate the assets in your portfolio on a regular basis. A good asset today may not necessarily be a good asset in the future.
And, don’t panic during the inevitable setbacks and don’t be fearful during the inevitable stock market corrections that all long-term investors face. If the reasoning behind the investment decision was sound when purchased, stick with the assets, and they should eventually recover and grow.
“It’s difficult to master the psychology and emotions behind earning, spending, debt, saving, investing, and building wealth.”
Personal finance is simple. Fundamentally, you only need to know one thing: To build wealth and achieve financial freedom, you must spend less than you earn. Yet, it seems challenging for most people to get ahead financially.
Financial success is more about mindset and behavior than it is about math, according to J.D. Roth, author of Get Rich Slowly. Financial success isn’t determined by how smart you are with numbers, but how well you’re able to control your emotions and behaviors regarding savings and spending.
“Change your mindset and attitude, and you can change your life.”
You sometimes have to make sacrifices in order to improve your financial situation. For instance, if you are in debt, you need to sacrifice some expenses so you can pay more towards managing and eliminating your debt. It is these financial sacrifices that will require you to have the right financial mindsets so you can overcome the obstacles that derail people from managing and eliminating their debt.
According to an article published in USAToday.com, Americans do not have a financial literacy problem. Instead, Americans simply make the wrong financial decisions and have bad final habits which does not necessarily translate that they are unaware of the best practices of financial management. We know how to make the right choices about our personal finances. The problem, according to the article’s author Peter Dunn, is that Americans have a financial behavioral problem. It is bad financial behavior, decisions and habits that usually get them into money trouble. It is what put them in a financially untenable position.
A perfect example is that you should never spend more than what you are earning. It is logical after all. But does that mean you follow it. Some people still end up in debt because they spend more than what they are earning.
Other examples of beliefs about money and personal finance include:
Taking personal responsibility regarding your finances is everything.
You shouldn’t buy things you can’t afford.
You don’t have to make a ton of money to be financially successful.
You can give yourself and your family an amazing life, if you’re able to remain disciplined and think long term.
Borrowing money from or lending money to your family isn’t recommended.
Education can get you a better job, if you get the right education.
You should buy life insurance.
You have much more to do with being a financial success than you think.
Financial literacy gems such as “spend less than you make,” “you need to budget” and “save for the future” are impotent attempts to help. However, lacking the correct financial mindset can make following the simple financial gems quite challenging.
There are 5 destructive financial mindsets that are the norm in our society today but you should actually get rid of starting today, according to NationalDebtRelief.com.
1. Using debt to reach your dreams.
This can actually be quite confusing. A lot of people say that it is okay to be in debt as long as it will help you reach your dreams. There is some truth to that but you should probably put everything into the right perspective. Buying your own home and getting a higher education are some of the supposedly “good debts.” It is okay to borrow for these if you can reach your dreams because of that debt. Not so fast. It may be logical to use debt to reach these but here’s the key to really make it work – you should not abuse it. If you get a home loan, buy a house that will help pay for itself. That way, the debt will not be a burden for you. When it comes to student loans, make sure that you work while studying to help pay for your loans while in school. Do what you can to keep debt from being a burden so it will not hinder you from reaching your dreams.
2. Thinking you do not need an emergency fund.
The phrase, “you only live once (YOLO)”, should no longer be your mindset – especially when it comes to your finances. You always have to think about the immediate future. If you really want to enjoy this life, you need to be smart about it. Do not splurge everything on present things that you think will make you happy. It is okay to postpone your enjoyment so you can build up your emergency fund. You are not as invincible as you think even if you are still young.
3. Settling for a stressful job to pay off debt.
“The most important thing when paying off your debts is to pay off your debts.”
Among the financial mindsets that you need to erase is forcing yourself to stay in a stressful job just so you can pay off your debt. You are justifying the miserable experience that you are going through in your job because you need it to meet your financial obligations. This is the wrong mindset. You need to put yourself in a financial position where you will never be forced to stay in a job that you do not like. Live a more frugal life that does not require you to spend a lot so you can pursue a low paying job and still afford to pay your debts.
4. Delaying your retirement savings.
Some young adults think that their retirement savings can wait. Some of them think that they need to pay off their debts first before they can start thinking about the future. This is not the right mindset if you want to improve your finances. You have to save for retirement even when you are drowning in debt.
5. Failing to have a backup plan.
The last of the financial mindsets that you need to forget is not having a backup plan. Do not leave things to chance if it involves your finances. You have to make a plan and not just that, you need to have a backup plan. If you have an emergency savings fund, do not rely on that alone. What if one emergency happens after another? Where will you get the funds to pay for everything? Think about that before you act.
Takeaway
Remember, personal finance is simple…it’s your emotion, behavior and habits that are challenging. Bottom-line, it comes down to your financial mindset. Smart money management is more about your mindset than it is about personal financial math of net worth, cash flow, saving and investing. The math of personal finance is simple and easy. It’s the psychology that’s tough and challenging. Essentially, the concepts to improving your finances and achieving financial freedom are simple but it is not easy to follow through with them.
On April 23, 1910, Theodore Roosevelt gave what would become one of the most widely quoted speeches of his career. In Paris at the Sorbonne, Roosevelt delivered a speech called “Citizenship in a Republic,” which would come to be known as “The Man in the Arena.”
“It is not the critic who counts; not the man who points out how the strong man stumbles, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs, who comes short again and again, because there is no effort without error and shortcoming; but who does actually strive to do the deeds; who knows great enthusiasms, the great devotions; who spends himself in a worthy cause; who at the best knows in the end the triumph of high achievement, and who at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those cold and timid souls who neither know victory nor defeat.”
Theodore Roosevelt, Twenty-Sixth POTUS
I have quoted Theodore Roosevelt’s “Man in the Arena” speech since I saw it painted on our weight room wall at UM in 1995. It’s a constant reminder to ignore the noise, buckle my chinstrap, and battle through whatever comes my way.
110 years ago today, at the Sorbonne in Paris, Theodore Roosevelt gave what would become one of his most quoted speeches: "Citizenship in a Republic," a.k.a. "The Man in the Arena." https://t.co/WbFkduu0vC
“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.” – Peter Lynch
No one can control the economy, the stock market or exactly know how an investment will perform in the short term. And that lack of control and certainly can lead to making poor (and many times, emotional) investing decisions – like chasing performance, not diversifying, or trying to time the market by moving into and out of the market (often at the wrong time).
While these reactions can be triggered by a desire to avoid risks (defined for our purposes as loss of capital), the results of these behaviors can pose the greatest risk of all — not reaching your long-term goals. In fact, the biggest risk may not be market fluctuations themselves; it’s our emotional reaction to these fluctuations and market volatility. That’s why it’s so important to have a financial advisor in your corner, helping you stay committed to your long term investment strategy.
Here are some common emotional investing behaviors that may derail your journey to reaching your long-term financial goals. By understanding the pitfalls of these behaviors, you can prevent making these investing mistakes in the future.
1. Heading to (or staying on) the sidelines
We’ve all seen the headlines: the economy’s slow recovery, the government’s budget deficit, market volatility. Prompted by what they perceive as bad news, some investors may try to “time the market” or sell investments just because of what they hear in the news – to move to the sidelines (and perceived safety) and wait until things get better. But it’s nearly impossible to correctly ‘time’ the market (predict when to get out and even more difficult to decide when to get back in), which often results in missing the best days – thereby severely affecting your performance And often, waiting until things get better means selling when prices are down and then buying back in when prices are higher – not a recipe for long-term success.
Other investors hold in too much cash because they want to avoid market risk. But not investing could actually increase your risk because you may not have enough growth in your portfolio to meet your short and long term financial goals or offset inflation (and loss of purchasing power).
2. Stay in the game and stay invested
Keep your focus on your long-term financial goals rather than on the ever-changing headlines, which could focus too much on the negative for dramatic effect.
If you begin to feel overwhelmed, talk with your financial advisor about your attitude toward risk and observe how you react to specific events. That way, you can work together to refine your goals and investment strategy, if needed.
3. Chasing performance
When the media raves about the latest “hot” investment or highlights “dramatic” declines in the market, some investors are tempted to chase the winners and sell the losers. This type of emotional response could be a recipe for underperformance because it results in buying high and selling low – not the recipe for a successful investment strategy.
4. Stay diversified
Having a diversified set of investments is more important than trying to find the next “hot” investment. When you have a portfolio made up of a variety of quality asset classes and investment types, success isn’t tied to one company or one type of investment. While diversification cannot guarantee a profit or protect against loss, it can help smooth out the ups and downs of the markets, providing the potential for a better long-term experience.
Financial experts recommend reviewing your portfolio with your financial advisor at least once a year to ensure it’s adequately diversified. Your financial advisor can also help you decide if a recent major lifestyle or goal change warrants a change to your strategy.
5. Focusing on the short term
Day-to-day fluctuations in an investment’s value may tempt some investors away from their long-term strategy. For example, some investors sold out in 2008 because their portfolio had fallen from an all-time high, even though their performance may still have been on track to meet their goals and well above where they initially started.
Decisions can also be influenced by how a situation is presented.
Take this example: “The Dow plummets 150 points” OR “the Dow declines 1%.” Both could describe the same situation, but the first sounds much worse. It’s these short-term movements, and how they’re presented by the financial entertainment media, that could lead you to make emotional short-term decisions.
6. Setting realistic expectations
Realizing that market declines, while unpleasant, are normal will help you set your own realistic expectations for investment performance. After all, the stock market averages one 10% correction every year, and over a 25-year retirement, you could experience an average of six to seven bear markets.
It’s important to measure performance as progress toward your long-term goals, not in day-to-day fluctuations. Your financial advisor can help you answer the question, “How am I doing?” and help provide the discipline you’ll need to stick with your long-term strategy and ignore short-term distractions.
“Controlling and managing your spending is a skill that takes practice, determination and discipline.”
One of the most important things you must learn and understand in financial planning is that every dollar must have a job, whether you intentionally give it one or not. It is best to assign a task to every dollar you earn. When every dollar has a predetermined destination and income minus spend equals zero, you have created a zero-balance budget; this is the goal.
If the idea of maintaining a budget seems unpalatable, start small. Begin by tracking your monthly expenses and spending habits. You need to have a clear picture of where your money is going before you can change anything.
Become the boss of your paycheck and cash
Start assigning a job for every dollar you have with the intent of ensuring that money is your servant and working for you. You need to direct it to the things that move you forward, the things that allow you to live the kind of life you envision for yourself. You need to determine where your money goes, you need to take control. Here are some examples, according to Joe Morgan, financial advisor, Best Financial Life:
Your home equity dollars provide a place to live and the safety that your home value won’t fall below your mortgage (assuming you have enough of them)
Your emergency fund sits like the fireman in the station, ready to help you through life’s next big challenge
Your living expenses, which are funded by your paychecks, ensure your current lifestyle is maintained throughout the year
Your savings cover any big purchases over the next five years that cannot be funded by your regular pay
Your investment portfolio takes care of expenses that are five or more years in the future, which won’t be covered by future income
Your “play money” investment account is for entertainment purposes, but only if you know you won’t get rich (or go broke) buying and selling individual stocks.
Give Every Dollar a Name
Intentional Mindset
Personal finance podcaster, Paula Pant, says, “You can afford anything, just not everything.” Intentional living is not about deprivation or sacrificing the things you enjoy, but investing and spending on the things that are valuable to you.
Adopting an intentional mindset around where and how you spend your money will help control cash flow and free up more money to save and invest. For example, if quality food and nice meals are where you find value, you could focus on spending in that category, but you may need to pull back in another.
It’s important to understand that building the life you deserve isn’t about owning luxury brands or having the biggest house. It’s about finding the things that aligns with your personal values and the vision for your life and that bring you purpose, fulfillment, and joy, while balancing the cost versus value in the choices you make.
Your time is ultimately one of your greatest assets. As Warren Buffett says, “If you don’t learn to make money while you sleep, you will work until you die.” A big part of your financial journey will be finding ways to make your money work for you, taking steps like investing in low-cost index funds.
When it comes to spending, being intentional by giving every dollar a job and intentionally search for the best value can make a big difference to your cash flow and personal financial bottom line.
Our mission is to educate and empower you with financial knowledge and skills, so you can ultimately apply to your life, create financial security, and build wealth for retirement.
“Let this coming year be better than all the others. Vow to do some of the things you’ve always wanted to do but couldn’t find the time.” Ann Landers
Ann Landers dispensed advice to millions of Americans on everything from parental difficulties to marital relationships. Landers was one of the world’s most widely read advice columnist.
For 46 years, she offered compassionate and blunt counsel to spouses, singles in relationships and teenagers. Her columns chronicled the nation’s attitudes, preoccupations and worries for millions readers.
Her most enduring and endearing column is…”Let this coming year be better than all the others. Vow to do some of the things you’ve always wanted to do but couldn’t find the time.
Call up a forgotten friend. Drop an old grudge, and replace it with some pleasant memories.
Share a funny story with someone whose spirits are dragging. A good laugh can be very good medicine.
Vow not to make a promise you don’t think you can keep.
Pay a debt.
Give a soft answer.
Free yourself of envy and malice.
Encourage some youth to do his or her best. Share your experience, and offer support. Young people need role models.
Make a genuine effort to stay in closer touch with family and good friends.
Resolve to stop magnifying small problems and shooting from the lip. Words that you have to eat can be hard to digest.
Find the time to be kind and thoughtful. All of us have the same allotment: 24 hours a day. Give a compliment. It might give someone a badly needed lift.
Think things through. Forgive an injustice. Listen more. Be kind.
Apologize when you realize you are wrong. An apology never diminishes a person. It elevates him.
Don’t blow your own horn. If you’ve done something praiseworthy, someone win notice eventually.
Try to understand a point of view that is different from your own. Few things are 100 percent one way or another.
Examine the demands you make on others.
Lighten up. When you feel like blowing your top, ask yourself, “Will it matter a week from today?”
Laugh the loudest when the joke is on you.
The sure way to have a friend is to be one. We are all connected by our humanity, and we need each other.
Avoid malcontents and pessimists. They drag you down and contribute nothing.
Don’t discourage a beginner from trying something risky. Nothing ventured means nothing gained. Be optimistic. The can-do spirit is the fuel that makes things go.
Go to war against animosity and complacency.
Express your gratitude. Give credit when it’s due—and even when it isn’t. It will make you look good.
Read something uplifting. Deep-six the trash. You wouldn’t eat garbage—why put it in your head?
Don’t abandon your old-fashioned principles. They never go out of style.
When courage is needed, ask yourself, “If not me, who? If not now, when?”
Take better care of yourself. Remember, you’re all you’ve got. Pass up that second helping. You really don’t need it. Vow to eat more sensibly. You’ll feel better and look better, too.
Don’t put up with secondhand smoke. Nobody has the right to pollute your air or give you cancer. If someone says, “This is a free country,” remind him or her that the country may be free, but no person is free if he has a habit he can’t control.
Return those books you borrowed. Reschedule that missed dental appointment. Clean out your closet. Take those photos out of the drawer and put them in an album. If you see litter on the sidewalk, pick it up instead of walking over it.
Give yourself a reality check. Phoniness is transparent, and it is tiresome. Take pleasure in the beauty and the wonders of nature. A flower is God’s miracle.
Walk tall, and smile more. You’ll look 10 years younger.
Don’t be afraid to say, “I love you.” Say it again. They are the sweetest words in the world.
If you have love in your life, consider yourself blessed, and vow to make this the best year ever.”
“It is said an Eastern monarch once charged his wise men to invent him a sentence, to be ever in view, and which should be true and appropriate in all times and situations. They presented him the words: “And this, too, shall pass away.” How much it expresses! How chastening in the hour of pride! How consoling in the depths of affliction! “And this, too, shall pass away.’’ ~ Abraham Lincoln, 16th POTUS in remarks before the Wisconsin State Agricultural Society in Milwaukee, Wisconsin, September 30, 1859.
In today’s unpredictable world, this quote of Abraham Lincoln is very relevant.
“This too shall pass away” are good words to remember when you encounter an unexpected challenge. They are also good words to remember when you have just experienced an unexpected success.
Basically, nothing is permanent. “This too shall pass away” is a phrase that is often used as encouragement to remind someone that a bad or unpleasant situation will eventually end.
“Expect trouble as an inevitable part of life and repeat to yourself, the most comforting words of all; this, too, shall pass.” Ann Landers
“Feed your faith and your fears will starve. Feed your fears and your faith will starve.” Pastor Max Lucado
An old Cherokee chief was teaching his grandson about life…
“A fight is going on inside me,” he said to the boy.
“It is a terrible fight and it is between two wolves.
“One is evil – he is anger, envy, sorrow, regret, greed, arrogance, self-pity, guilt, resentment, inferiority, lies, false pride, superiority, self-doubt, and ego.
“The other is good – he is joy, peace, love, hope, serenity, humility, kindness, benevolence, empathy, generosity, truth, compassion, and faith.
“This same fight is going on inside you – and inside every other person, too.”
The grandson thought about it for a minute and then asked his grandfather,
“Which wolf will win?”
The old chief simply replied,
“The one you feed.”
Takeaway
Your thoughts can be your best friend or worst enemy. That is, if you let them.
Think about how you may be “feeding” your positive or negative thoughts, and allowing them to control your prevailing mood, attitude and behavior.
You have the ability to change anything in your life that no longer serves a purpose. Start today by believing that there is nothing in life that you can’t achieve. It is vital that you maintain a positive mindset and focus on what’s positive in your life. Dreams and goals cannot come to pass with a negative mindset.
Mindset affects just about everything–including your attitude. Your attitude is based upon your beliefs. Beliefs affect your decisions. Decisions affect your behavior, behavior affect your actions, actions affect your results.
After the Great Fire of London destroyed much of the medieval city of London in 1666, Sir Christopher Wren designed new churches and supervised the reconstruction of some of London’s most important buildings. His name is synonymous with London architecture.
He produced ambitious plans for rebuilding the whole area but they were rejected, partly because property owners insisted on keeping the sites of their destroyed buildings.
Wren did design fifty-one (51) new city churches, as well as the new St Paul’s Cathedral. In 1669, he was appointed surveyor of the royal works which effectively gave him control of all government building in the country. He was knighted in 1673.
Story of Three Bricklayers
We see things as we are; not as they are
The story of three bricklayers is a true story. After the great fire of 1666 that leveled London, the world’s most famous architect, Sir Christopher Wren, was commissioned to rebuild St Paul’s Cathedral.
One day in 1671, Sir Wren observed three bricklayers on a scaffold, one crouched, one half-standing and one standing tall, working very hard and fast.
To the first bricklayer, Christopher Wren asked the question, “What are you doing?” to which the bricklayer replied, “I’m a bricklayer. I am cutting this stone to a certain size and shape.” He was just doing a task
The second bricklayer, responded, “I’m a builder. I’m building a wall. I’m working hard laying bricks to feed my family.” He was just earning a living
But the third brick layer, the most productive of the three, when asked the question, “What are you doing?” replied with a gleam in his eye, “I’m a cathedral builder. I am helping Sir Christopher Wren build St. Paul’s Cathedral for The Almighty.” He was doing his small part of building a great cathedral.
The lessons from the story of three bricklayers:
Big Picture Thinking – Being able to see the end result and how your work contributes to that end.
Attitude – A positive attitude and pride in what you are doing will show up in your work and your motivation.
Connection to the Organization’s Mission – Employees who are rightly connected to the organization’s mission, vision, values, and goals are happier, more engaged, and more productive employees.
The Power of Purpose and Calling
The story of the three bricklayers is also a metaphor on the power of purpose, where the “cathedral builder,” demonstrates a personal expression of purpose that transforms his attitude and gives a higher meaning to his work. Another term for purpose is “calling.” For the first bricklayer, building the wall was a job. For the second bricklayer it was an occupation. For the third bricklayer, it was a calling.
A calling reflects our universal need to matter, to influence, and make a difference in the world around us. Victor Frankel made this clear in his book, The Meaning of Life. He wrote about how some people survived the holocaust, but so many didn’t. One of the things he identified was those who had a purpose or reason to continue to live that was beyond themselves tended to survive, while those who were focused primarily on themselves did not. Those who survived found some meaning in their painful circumstances. The meaning they found was in caring for and helping others in this horrible experience.
