Generating "alpha" in life

[One day at a time]

When I first became aware of the PP, what impressed me the most was HB's rule of investing in career rather than the market.  This resonated very much with my own experience.  In a broader sense, I thought it was helfpul to think about my entire life as an investment.  So, I thought it might be interesting for hear how people generate "alpha" with their lives...with alpha being decisions or activities that add to one's quality of life and financial security.  I'll add some things that I have made a big difference for me in recent years:

1.  Growing my own food.  A variety of benefits:  organic, not as dependent on the food production system, saves a lot of money.
2.  Involved in social networking in neighborhood through website, Nextdoor.com.  It is much better than it sounds.  A ton of people in our extended neighborhood have signed up and now there is all kinds of collaboration going on- sharing information, ie. a good babysitter, to restaurants, to sharing tools, etc. This has become a great way to build relationships and resources in our community.
3.  Mindfulness meditation.  I started meditating to deal with work stress but it became a huge positive factor in my life.  My wife even says she can tell when I have meditated in the morning.  There's a ton of growing research behind it, but it was still a revelation to me in the benefits throughout the day.
4.  Taking sleep seriously.  Again, lots of research here (both positive and on the incredible, chronic sleep deprivation that many Americans live by.)  I gave up all TV and started to go to bed with my kids.  Like with the meditation, it added a great deal of quality to the day.
5.  A concerted effort to simplify my life in just about all things.  I made simplicity in a major priority in every decision I could.  The goal was to achieve a state of "resolution" about decisions so it no longer mentally taxed me.  The first big one was going 100% PP, so I no longer worried or spent more mental energy on investing than I wanted. 

Okay, hopefully that will get the ball rolling...

[BearBones]

Great topic! In the long run, such things generally create much more of a sense of wellbeing than wealth.

I dabble in all of the things you have mentioned except #2. If we generalize this to social connection and community, I think that this is very important (especially if in person rather than online). The growing of food has been frustrating for me due to the ravages of such things as potato leaf hoppers, tomato blight, and deer, but I will persist. Other things to add would be a fulfilling intimate relationship (I'm working on that), hobbies you are passionate about (I'm taking up kite surfing this spring and I think that will do the trick), a regular exercise routine, and intellectual stimulation. Ah, and simplicity... That's SO important but SO  hard.

[frugal]

Perfect topic!

Congrats.

6- Play with sons. Help sons & daughters. Follow-up their growing.

[melveyr]

I am studying for the CFA right now which will hopefully generate some career "alpha." It is much cheaper than an MBA and depending on the situation can be given more weight.

[pumpkin]

I'll concur with BearBones on exercise.  I started strength training about a year ago and have been enjoying the results - it's been benefiting me all day long, every day.  Check out You Are Your Own Gym by Mark Lauren for a simple and challenging way to get going (no gym membership required).

[frugal]

I'll concur with BearBones on exercise.  I started strength training about a year ago and have been enjoying the results - it's been benefiting me all day long, every day.  Check out You Are Your Own Gym by Mark Lauren for a simple and challenging way to get going (no gym membership required).

+1

With good results?

I run mostly, bike, tenis, and some other sports sometimes.

[MediumTex]

I am studying for the CFA right now which will hopefully generate some career "alpha." It is much cheaper than an MBA and depending on the situation can be given more weight.

I agree that the CFA designation is probably more useful than an MBA.

[craigr]

When I first became aware of the PP, what impressed me the most was HB's rule of investing in career rather than the market.  This resonated very much with my own experience. 

Absolutely. He's probably the only financial author I came across that stated this simple truth. Much financial advice makes investing out to be the only way to make money. It completely ignores the life energy it takes to generate money to invest: Your career. Because most advice focuses only on the investing part, it encourages people to take huge risks with their life savings and that money may not be something they can replace.

My #1 way to add "Alpha" to your portfolio is to invest in yourself. Learn new skills. Start a business. Try new things even if everyone around you thinks they are crazy. Etc.

I get a kick out of people trying to optimize their investing on unknown future variables and unknown future outcomes. If they spent the same amount of time working on a new business idea or learning a new skill they'd be far ahead of the game. IMO.

[frugal]

When I first became aware of the PP, what impressed me the most was HB's rule of investing in career rather than the market.  This resonated very much with my own experience. 

Absolutely. He's probably the only financial author I came across that stated this simple truth. Much financial advice makes investing out to be the only way to make money. It completely ignores the life energy it takes to generate money to invest: Your career. Because most advice focuses only on the investing part, it encourages people to take huge risks with their life savings and that money may not be something they can replace.

My #1 way to add "Alpha" to your portfolio is to invest in yourself. Learn new skills. Start a business. Try new things even if everyone around you thinks they are crazy. Etc.

I get a kick out of people trying to optimize their investing on unknown future variables and unknown future outcomes. If they spent the same amount of time working on a new business idea or learning a new skill they'd be far ahead of the game. IMO.

but people pursuit happiness trying to achieve financial freedom trading.

It should be fabolous to be able to get rich TRADING

[Pointedstick]

y #1 way to add "Alpha" to your portfolio is to invest in yourself. Learn new skills. Start a business. Try new things even if everyone around you thinks they are crazy. Etc.

I get a kick out of people trying to optimize their investing on unknown future variables and unknown future outcomes. If they spent the same amount of time working on a new business idea or learning a new skill they'd be far ahead of the game. IMO.

but people pursuit happiness trying to achieve financial freedom trading.

It should be fabolous to be able to get rich TRADING

I guess it depends on your personality; active trading sounds like a stressful, hair-raising nightmare to me. Getting rich quickly is a goal of many, but far more have ruined their lives making the attempt.

[Kriegsspiel]

Great topic.

I was really influenced by the book Rennaissance Souls.  I usually focus on a few things at a time, for a few weeks.  For instance, I started out with economics about a year (I knew nothing about investing, what stocks were, or anything... had all my money in a checking account) ago, and spent a few weeks reading as much as I could on it.  It's kind of continued, since economics is pretty cool.  I mixed investing in with this.  I'm still looking into economics/investing, obviously.  I focused on a few other things, obviously.  I've been using this method for almost a year.

I guess this is a roundabout way of saying I read a lot of books.  I think I read 70+ last year.

[WiseOne]

Good phrase to match Rule #1!

It may be worth extending Rule #1 to include the concept of early retirement via minimizing spending, which works just as well and may be a preferred route for some people.

I like the "early retirement" philosophy not so much because I'm looking to quit my career, but to let me get through rocky periods when research funding is tight.  We're in such a period now, and lab scientists are stampeding for the exits because they can't or won't compete for grants when the chance of rejection is >90%.  It'll take years to rebuild when the dust settles, but those of us who can hang on will be in a great position.

[Tyler]

I've also spent a bit of time and energy the last few years researching and planning for early "retirement".  For me, it's not so much about wanting to abandon all work, but about simplifying my life to the point where I have the financial flexibility to prioritize rewarding work over a traditional career path.  I look forward to adventurous career twists that, like CraigR says, might make friends think I'm crazy -- Like starting a web business, becoming an apprentice to a prolific sculptor, repairing bikes, or giving tours to kids at the zoo. 

I'm investing in myself to allow my working life to transcend deadlines and cubicles.  And I'm investing in the PP so that the money I've stockpiled to support that freedom has a low risk of vanishing on me in the process. 

[blackomen]

I am studying for the CFA right now which will hopefully generate some career "alpha." It is much cheaper than an MBA and depending on the situation can be given more weight.

Which one are you doing?  I'm on Level 2 (after failing Level 1 a few years ago and finally passing last year)..  hopefully I can get it right the first time.  Good luck to you!

What I find interesting is that although much of the CFA curriculum (so far at Level 2) doesn't necessarily disagree with the principles behind the PP, most people with the designation tend not to have an open mind about it (dismiss it without even testing their doubts.)