By Shabrish Menon, Founder & Managing Principal of Finomenon Investments
On a recent family trip to the Kite Festival at Long Beach, Washington, I visited Fort Canby and reflected on the historic Lewis and Clark Expedition. This expedition, one of the most significant explorations in American history, offers valuable insights for the world of investing. I usually have the habit of finding ways to relate things with the investing and/or personal finance world, but here I try to stay honest in my attempt to weave the learning’s.
A Brief Overview of the Lewis and Clark Expedition
In January 1803, President Thomas Jefferson requested $2,500 from Congress to fund an expedition to the Pacific Ocean. His goals were ambitious: establish trade with Native American tribes, discover a water route to the Pacific, and gather information about the geography, cultures, and natural resources of the West.
In 1804, Meriwether Lewis and William Clark set out with around 45 men, crossing the Missouri River, the Rocky Mountains, and eventually reaching the Pacific in 1805. They returned to St. Louis in 1806 with a wealth of knowledge that would shape America’s expansion westward.
Their mission was clear: “The object of your mission, the Pacific Ocean.” This focus on a single goal was crucial to their success and offers a profound insight for investors.
Define Your Financial Vision, Even If It’s Fuzzy
Just as Lewis and Clark had a clear objective, investors must define their financial goals. Without a target, financial decisions become scattered, impulsive, and often unproductive. A lack of direction is one of the hidden costs of DIY investing. When you have to chart your own financial course, the daily grind of life, family, job, vacation can become big distractions when compared to a professional who is paid to do the job,
Ask yourself: What is my ultimate financial goal? Do you want to save a certain amount, retire early, or achieve a specific lifestyle? Your destination will guide every financial decision you make. Defining your goals helps you determine the right actions, funding sources, and time horizon. In my personal journey, my “Pacific Ocean” was building a career that would give me the freedom to grow as a private finance practitioner. My plan helped me take the steps and pursue my goals.
Chart Your Course: Create a Financial Plan
Lewis and Clark had a map to guide them; you need a financial plan. Whether simple or complex, your plan should outline how you’ll reach your financial objectives. Here are some essential elements:
1. Budgeting
Budgeting is the foundation of financial success. It’s your roadmap for monthly and annual decisions, helping you manage income and expenses while staying on track toward larger goals.
2. Saving and Investing
Just as the expedition required supplies, your savings and investments are the fuel for your financial journey. Determine how much to save and invest based on your risk tolerance and time horizon.
3. Risk Management
Every journey comes with risks, and the financial world is no different. Market volatility, economic downturns, and unexpected expenses are inevitable. Mitigate these risks by diversifying your investments, maintaining an emergency fund, and securing insurance.
4. Regular Checkpoints
Lewis and Clark regularly reassessed their route. Similarly, you should review your financial plan periodically, adjusting it as life changes. Involve your spouse or a trusted advisor in these reviews to ensure you’re on the right track.
Stay Focused on the Horizon
Lewis and Clark faced numerous distractions—from rugged terrain to unpredictable weather. Similarly, in personal finance, there are distractions like market noise, financial trends, and the fear of missing out (FOMO). The key is to stay focused on your long-term goals.
Avoid making impulsive decisions based on short-term market movements or chasing the latest investment fad. Like a river, the stock market ebbs and flows, but over time, it has historically trended upward. Patience and discipline are essential to reaching your financial “Pacific Ocean.”
The Reward: Reaching Your Pacific Ocean
For Jefferson, Lewis and Clark’s journey to the Pacific wasn’t just about reaching the ocean. It was about expanding America’s trade, opportunities, and relations—a new frontier. Similarly, reaching your financial goals is about more than just the balance in your accounts. It’s about the freedom, security, and opportunities that financial stability provides for you and your loved ones.
At Finomenon Investments, we firmly believe that wealth creation is not about hoarding—it’s about creating freedom. Reaching your financial “Pacific Ocean” could mean retiring comfortably, providing for your family, pursuing passions, or simply having peace of mind. This is the culmination of years of planning, discipline, and perseverance.
What Should You Do?
The lessons from the Lewis and Clark expedition remind us that with a well-defined objective, a thoughtful plan, and the discipline to stay the course, we can navigate the challenges of financial course with your own version of financial freedom. At Finomenon Investments, we work with you to define your goals, chart your course, and help you stay focused on your financial future.
