How to maximise returns?
Disclaimer: Please note that all content and information in this blog are for educational and informational purposes only and should not be taken as professional investment advice.
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I would rather not achieve maximum returns if it is at the great expense of other important things, for example, time with family, leisure time, social interactions, sleep, etc.
Here's an example. We have two individuals: X and Y
X achieves a 25% p.a. return on his investment by spending 6 hours each day researching and managing his trading and investment portfolios, on top of his full time job.
Similarly, Y also has a full time job. But unlike X, Y chooses to prioritise his time for under important things like time with his kids as well as leisure time with his family and friends. As such, X chooses to "sacrifice" his portfolio's returns by accepting the market's 12% p.a. return. By doing so, X doesn't need to spend any time managing his investment portfolio but instead just automates his monthly dollar cost averaging process.
These two individuals, X and Y, lead very different lives and have two very different approaches to investing. While X maximised his portfolio's returns, it was at the expense of other aspects of his life.
Takeaway
Each of us has the same 24 hours each day. And it's up to us how we best want to use it. Some value maximising their portfolio returns so they don't have to worry about money in retirement, while some value maximising time with loved ones even at the expense of their portfolio's returns.
Maximising returns is not all about maximising one's monetary returns. But rather, maximising returns is doing what yields us the greatest happiness. We don't need to achieve the maximum returns in our portfolio to be happy. Instead, we should strive to achieve the maximum returns in life — to live the happiest and best life we can live. That is more important and more lasting than any returns your investment portfolio can give. An investment in your life pays eternal dividends. Therefore, it's important to pay as much or even more attention to the other aspects of life beyond investments.
Having a decent level of return for our portfolio which meets our needs is sufficient. What matters is how we best use our time and how much happiness we derive from the same 24 hours we all have each day. That truly determines whether we have maximised our returns in life.
To maximise our returns in life is far greater and more important than any monetary returns we can ever yield. At the end of the day, we won't regret making an investment into our life but we may regret not having made more into it.
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Disclaimer:
The content and information provided on this blog is solely for educational and informational purposes, and should not be construed as financial advice. The accuracy or completeness of the content and information provided in the blog cannot be guaranteed. Before making any investment decisions, it is important for readers to research and carry out independent verification of the information provided, or consult with a qualified financial professional. No warranty and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of actions taken based on the ideas or information found in this blog.
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