An excerpt from “Timeless Simplicity” by John Lane:
The industrialist was horrified to find the fisherman lying beside his boat, smoking a pipe.
“Why aren’t you fishing?” asked the industrialist.
“Because I’ve caught enough fish for the day.”
“Why don’t you catch some more?”
“What would I do with them?”
“Earn more money. Then you could have a motor fixed to your boat and go into deeper waters and catch more fish. That would bring you money to buy nylon nets, so more fish, more money. Soon you would have enough to buy two boats, even a fleet of boats, then you could be rich like me.”
“What would I do then?”
“Then you could sit back and enjoy life.”
“What do you think I’m doing now?”
I often say that no one looks back on his or her life and is appreciative of their portfolio. No one reflects on the great times they had when they were in 80% fixed income when the market dropped. In fact, I believe that quite the opposite is true. Most people would look back and think they had allowed their financial lives to stress them out too much.
People do, on the other hand, live their life through experiences. They use their portfolio to fund these experiences, and that is what people enjoy and reflect on. An amazing vacation with family is not a percentage return, it is a goal. Hypothetically, if you could live out your ideal life with $500,000, why would you incur the anxiety of trying to have $5,000,000?
There is something so succinct about this message that I appreciate. There is a freedom that the fisherman has by knowing he has what he wants. Theodore Roosevelt once said, “Comparison is the thief of joy.” Being as rich as the industrialist isn’t the goal for the fisherman. Enjoying his own life is the goal. Shouldn’t that be how we live our one financial life?