Rule of investing: Always plant seeds for the future

When I was finishing college, I had the highest grade point average of every black person on the entire University of Kentucky campus.?I was too young to fully understand that grades aren’t exactly an indicator of long-term success, but I was proud.

My goal, at that time, was to head on to finish my PhD with flying colors and become one of the greatest Finance professors in the world.??I knew this would mean a few more years of being broke, but I was ok with that.?I’d heard that Finance professors earned high salaries and I wanted to be at the top of the payroll food chain.

Some of my friends weren’t going to graduate school, mainly because they’d received some decent job offers that would help them to escape the life of a broke college student.?At that time, any job, of any income level, would be better than the lives we were living as students.

While walking across campus, I bumped into a friend of mine who was graduating at the same time I was.?She was a very pretty girl that I secretly had a crush on.?However, at that time, my fear of rejection caused me to keep my mouth shut.?Maybe it was a big mistake, but now that I’m married to my beautiful wife, I’m glad I took my time to wait for the biggest prize.

As I spoke to my friend with excited anticipation about the future, she asked, “What are you gonna do after you graduate?”?I said, “I’m going to graduate school.?I just got accepted into my PhD program.?What are you gonna do?”

She said, “I like money too much to go to graduate school.”

I then replied, “I like money too much NOT to go to graduate school.”

So, think about that conversation.?She and I had the exact same goal:?To earn enough money and no longer be broke college students.?But we also had diametrically opposed perspectives on how to solve the problem.

This is the nature of delayed gratification.

Investing seems complicated, but all it means is sacrificing something today so you can have more tomorrow.??You give up a bit of the present so you can control the future.?

The present today is controlled by those who prepared for it in the past.?But in a society that constantly encourages instant gratification in all financial and interpersonal choices, it’s no wonder that so many people find themselves in a really ugly hole.

So, as a basic principle for all families that want to be successful, I propose this:?Teach your children to plant seeds.?Teach them to live a few uncomfortable years so they can have a lot of powerful years later on.?Help them understand that the best is yet to come for those who are able to wait before collecting their prize.

This is the thinking of a good investor.?Strong investors are always looking for opportunities to plant seeds.?They aren’t trying to sign the backs of checks, they want to sign the FRONT of them.?Money isn’t seen as a tool for spending and buying new clothes, jewels or cars.?It starts as an opportunity to own more appreciating assets.

So, investing isn’t just a skill, it’s a mindset and a culture.?Those who invest the most also tend to be the ones who take care of their health, maintain healthy relationships, and spend time reading and learning.?They are constantly planting seeds with their time, energy and money that will give them benefits down the road.

Every successful family must embrace delayed gratification as a core value in order to achieve at the highest levels and it must be bigger than money.?

Dr Boyce Watkins is a Finance PhD and founder of The Black Business School. His new book, "The 10 Commandments of Black Economic Power," is set for release in March, 2022. You can learn more about Dr Watkins and his work by visiting BoyceWatkins.com