March 30, 2022 – An investment banker was taking a much-needed vacation in a small coastal village when a small boat with just one fisherman docked. The boat had several large, fresh fish in it. The investment banker was impressed by the quality of the fish and asked the fisherman how long it took to catch them.
The fisherman replied, “Only a little while.“
The banker then asked why he didn’t stay out longer and catch more fish?
The fisherman replied he had enough to support his family’s immediate needs.
The banker then asked: “But what do you do with the rest of your time?“
The fisherman replied, “I sleep late, fish a little, play with my children, relax with my wife, stroll into the village each evening where I sip wine and play guitar with my friends. I have a full and busy life.”
The investment banker scoffed: “I am an Ivy League MBA, and I could help you. You could spend more time fishing and, with the proceeds, buy a bigger boat, and with the proceeds from the bigger boat, you could buy several boats until, eventually, you would have a whole fleet of fishing boats. Instead of selling your catch to the middleman, you could sell directly to the processor, eventually opening your own cannery. You could control the product, processing, and distribution.“
Then he added: “Of course, you would need to leave this small coastal fishing village and move to the city, where you would run your growing enterprise.”
The fisherman asked, “But sir, how long will this all take?“
To which the banker replied: “15–20 years.”
“But what then?” asked the fisherman.
The banker laughed and said, “That’s the best part. When the time is right, you would announce an IPO, sell your company stock to the public, and become very rich. You could make millions.“
“Millions, sir? Then what?“
To which the investment banker replied: “Then you would retire. You could move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, relax with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your friends.”
Stop Chasing What You Already Have
The most striking takeaway from this story is that the Banker wanted the fisherman to pursue a life that provided what he already had. The fisherman’s “full and busy life” consisted of pastimes that equate to what many of us would consider components of a full and happy life. By only working to fulfill his and his family’s “immediate needs,” he allocated the rest of his time to living his life the way he wanted to. The rat race many of us find ourselves in is often described as self-defeating; it blinds you into chasing that which may already be beside you. Know what you want and pursue it directly, rather than wasting so much time on the rat race, pursuing what everyone else values, only to find that you already have what truly matters.
What’s the End Goal?
There’s incredible power in getting clear on what you actually want and optimizing for that. So many people work without purpose and waste years pursuing an unknown outcome. For them, the parable of the fisherman is the perfect spark for clarity: understand what you want and seek it directly. As pictured by the banker, the end goal was the ability to spend our time as we wish, with whom we want to spend it, just as the fisherman was doing.
Wealth as the End Goal
Blinded as he was, even the banker knew that monetary value comes from what the money can be exchanged for, not the money itself. People only think of the word ‘wealth’ in terms of money, but this is a narrow view of what it means to be wealthy. The financial services industry promotes this limited view of wealth and underserves those seeking a broader purpose in life. It is time for us to “Reinvent Wealth!” In my opinion, wealth consists of the level of happiness you experience in every facet of your life.
I firmly believe four distinct but inter-related areas comprise our wealth:
- Physical wealth = Health
- Time wealth = Freedom
- Social wealth = Relationships
- Financial wealth = Money
The fisherman in the parable was fortunate, was clear on his end goal and realized the banker’s proposed journey only returned him to the same place. Many of us are not as fortunate and grapple with visualizing our end game. It’s easier to speak about what’s wrong with our lives and what needs to change, but do we reflect on what brings true joy and happiness?
We all can achieve the four types of wealth in our lives. We know it as happiness, a feeling when all four types of wealth are at play simultaneously and in the right balance. Happiness is the place where we should all strive to be.
A Word of Caution
There are two critical caveats to being genuinely wealthy; traps that we must avoid at all costs:
- Be wary not to get lured into things with a focus on money and status that will rob you of Freedom and Health.
- Living life on your terms, rather than the expectations of others, provides Freedom.
Be Mindful of the Journey
Yes, the end game’s destination is crucial to keep in mind. However, the journey you take provides experiences that will become lasting memories. The fisherman was content with his end game, but starting a business that employs thousands and offers fresh fish for families might be a worthwhile detour. Some say it’s about the journey, not the destination. I say pick the destination that will take you on a journey that will allow you to experience an optimal life.