Now, I am very excited to share this blog, it combines two of my interests, finance and yoga! To start, here’s a little house keeping to explain exactly what a ROI is and how it is used. Bare with me, I promise the post will get better 🙂 ROI is a financial term used in business to calculate the return, or benefit, of an investment. If you want to be technical the formula is Gain from Investment minus Cost of Investment divided by the cost of the investment. For example, if a company is beginning a project it may use this calculation to figure out if the investment will be profitable or not. Want to know more!? Sure you do: http://en.wikipedia.org/wiki/Rate_of_return
Businesses and governments that run efficiently and effectively are the most successful. The basic rules are make more than you spend and invest in things that are profitable long-term (just to name a couple of several hundred more!). I propose we take these business tactics into our own lives to make our mind, body, and soul more profitable. The more profitable aspects of life we invest in, the higher our return in life will be. What if we invested in partying, drinking, and over-indulging, for the gain of our enjoyment, and at the expense of our bodies, then what would be our return? Naturally, our initial return would be fun and pleasure, but these are all “false refugees.” They give us an immediate sense of happiness and pleasure, but once they are over we are left with a physical and emotional deficit. We have spent our savings. Our bodies are not as effective, our minds may feel a sense of guilt, not to mention our wallets may hurt! We may get a short gain in “happiness” and fun, but I think we should really be after the long term profits and true happiness, not just pleasure.
So what are the long term profitable aspects of life and happiness? I believe those are family, friends, spouses, our health, spirituality, and souls. Aren’t these the things that really matter? If we focus our time and energy on these things, we will have enormous long-term gains. Just like growing your bank account, company, or career takes lots of time and work, so does growing those profitable aspects of life and happiness. It is not an overnight process with immediate results. Where false refuges are pleasurable at first (drinking, eating junk food), the long term effects are not so pleasurable (hang over, indigestion), but it is the opposite with true happiness. It may hurt a little to wake up at 6am to make that 2 mile jog, but the profits your body gains will by far surpass the expense of waking up early. It may hurt a little to make it to church or meditation class on Sundays, but again the profits your soul gains will make you successful in deed. If we spend more time with our friends and families and really develop those relationships, we will have them for life. These are all wonderful long-term accomplishments that help achieve happiness.
Of course, once we have maxed out our 401k investment in life and happiness, we may still have some extra funds to “splurge” with. Go on a shopping spree, have a margarita, eat that cheeseburger, just don’t spend all your extra money in one place.
Namaste financial yogis 🙂