Is the juice worth the squeeze?

Photo by Laure Noverraz on Unsplash

Last time, we talked about how short-term market fluctuations are the price you pay for being a long-term investor, and how knowing why you're invested the way you are can help. Today, let’s expand this concept beyond the way you invest. 

Whenever you're setting any future intention – financial or otherwise – it's helpful to ask ahead of time:

Is the juice worth the squeeze?

For example, envision having your own lake house, buying that top of the line Tesla, and/or splurging on a two week European family vacation. But before you commit to any of these intentions, consider the sacrifices they will require of you.

Is it worth giving up family time to work more hours so you can comfortably afford that Tesla?

Are you willing to reduce your cash cushion to make the lake house down payment and carry two mortgage payments each month?

And is cutting your annual savings goal in half worth making that European vacation a reality?

Notice how you feel when you ask yourself these questions. These questions are not a judgment nor are they meant to suggest that you shouldn't pursue these goals. 

Rather, they bring greater awareness around the sacrifices necessary to make these intentions your reality. Once you’re armed with greater awareness, you can then decide for yourself whether or not the tradeoffs are worth it.

This approach also acts as a check valve. It helps you make sure you're pursuing goals that are uniquely important to you — and not just the ones you see your friends and neighbors typically chase after. When you embrace this approach, you're more likely to stick with your pursuit when the necessary sacrifices present themselves. And that’s because you’ve decided ahead of time that the juice is, indeed, worth the squeeze.