Climbing a Mountain: 6 Financial Lessons From a Hiking Adventure
“Consult not your fears but your hopes and your dreams. Think not about your frustrations, but about your unfulfilled potential. Concern yourself not with what you tried and failed in, but with what it is still possible for you to do” (Pope St. John XXIII).
Every year, as a family tradition, I take my school-aged children on a special “mom and kids” back-to-school hike. It provides us with quality time so I can invest in them, help them feel heard, learn about how they are feeling, and enjoy nature before our life and schedule get a bit crazy.
This year, I took my seven-year-old (a second-grader) and five-year-old (a kindergartner) on a 14er hike. A 14er is a mountain that reaches higher than 14,000 feet above sea level. There is no such thing as an easy 14er, but my boys insisted that they wanted the opportunity to try to climb one of these mountains.
Sometimes, managing our finances or saving for retirement can feel like climbing a mountain. My boys learned so many great lessons from our hike that I would like to share with you today. Whether it is your finances or a mountain you’re trying to conquer, hopefully, you will find some useful advice below.
1. Wake up Early
When you plan to hike above tree line, the threat of afternoon storms, lightning, wind, and rain are a pretty big deal. You are usually the highest element around, you’re typically hiking on granite (which conducts electricity), and the wind can be strong enough to blow you over (in extreme cases, off the mountain).
Starting early is key, because most storms hit the Colorado mountains in the afternoon. Typically, you want to be below tree line before noon whenever possible.
Similarly, my No. 1 piece of advice regarding finances is to start early! Begin saving, investing, and preparing financially as soon as possible. The longer you have, the easier it is to hit your goals.
For example, $5,000 invested at a 10% return for five years will become $8,144. In 10 years, it will become $12,968, and in 15 years, it will become $20,886. It really does pay to start early. It also gives you the ability to switch things up and be flexible. By starting, you have built up some funds and learned the discipline needed to succeed.
2. Be Prepared
You just never know what you might come up against when you are hiking a mountain. Layers are key when thinking about your clothing. You don’t want to sweat too much, because being wet can make you colder faster. Having extra jackets, gloves, and hats in our backpacks was essential.
We all started with just a light jacket on, but within an hour, we were wearing gloves and hats. As we traveled higher, the wind picked up, and the temperature dropped. An hour later, the sun had risen above the surrounding mountains, so we shed the hats and gloves.
It was the same with water: We all carried more than we needed, because it’s important not to get dehydrated. Hydration is essential at altitude and can help prevent altitude sickness.
You are never quite sure what you will encounter when you are hiking, so having more than you need, even when it means a bit of a heavier load on your back, can be the difference between life or death. (OK, that phrase is a bit extreme for the hike I took my five- and seven-year-old on, but for some mountain hikes, it is 100% accurate).
What about your finances? Well, truth be told, you also never know what you may be up against financially. With investing, you never know when we might hit a down market and lose 20%. With home ownership, you never know when your furnace or air conditioning might stop working. With family and health, you never know when someone might be in the emergency room or hospital.
All of these uncertainties have financial considerations, and being prepared allows us to address them head on. Financial preparedness includes an emergency fund and a loose idea of what you will do when an unexpected financial decision comes your way. We cannot know what the future will hold, and we should not worry or stress about it. After all, God is in control. However, it’s prudent to save diligently and know what the plan is if something goes awry.
3. Bring More Than You Think You Need
As I mentioned above, we brought lots of layers of clothing and water. We also brought lots of different kinds of food and electrolyte powder. There is always a chance the hike will take longer than expected or that something will happen to leave you stranded.
I assumed that the four-mile hike to the top of Mount Democrat would take us a maximum of four hours. I was wrong. We started hiking around 7 a.m. and were not back to our car until after noon—over five hours later. Luckily, we had enough food and water to keep us going.
In the same way, I recommend you try to save more than you think you may need for your financial goals. Prices might increase, your goal might shift, or something else might become more important. Having some left over is a good problem to have. Shooting high helps make things more realistic.
At the same time, you can overdo it with this principle. Make sure you are not over-stretching yourself. Ask God if this goal is really what He wants for you. Make sure you are OK with the sacrifices you are making to reach your goal. Often, they are worth it. Sometimes, however, it is better to modify your goal and maintain the lifestyle you want right now.
4. Just Keep Moving
As my boys were walking, essentially, straight up the mountain, they were constantly asking for breaks. It was not easy. We paced ourselves; every quarter to half mile, we would stop for some water and sit for about a minute. Then, we were back at it—just one foot in front of the other. As it became hard, we told stories to keep our minds off the physical challenge. In the end, we just kept moving, because seeing the top ahead motivated us.
In the same way, financially, sometimes you will have to change your saving patterns. Maybe something unexpected came up, and you can’t save as much as you want this month. My advice: Try to contribute something. It might be small. Maybe it is only $10. Something is better than nothing. More importantly, however, saving whatever you can keeps you in the habit of contributing. When you have a better financial month, make a larger contribution. Not every month is the same, but consistency matters.
5. Know When to Turn Around
At 13,888 feet above sea level, my five-year-old got sick. It was just a bit too much for his little body to handle. He was so ready to keep going to try to make it all the way, but it was not worth it. You do not mess with altitude sickness. His body was telling us it was not good for him, so we turned around. No one argued. My seven-year-old encouraged his brother and told him he did an amazing job. It was a beautiful testimony of brotherly love and the right thing to do.
Sometimes, we bite off more than we can chew. Recognizing it and accepting it is hard. It takes humility and a special kind of strength.
Similarly, when we set financial goals, we might shoot too high. There are times to reevaluate, turn around, or pause. It is not easy to admit we were wrong or that now is not the right time for this specific goal. Growing in humility and listening to the people around us helps us know when we need to make a change.
Surrounding yourself with people who will honestly tell you how you are doing is key in these situations. Having a prayer life to help you discern what God wants is also essential. At times, the lessons learned from the journey, not necessarily the results, is what God wanted for us. Sometimes, the answer is, “It is time to go back down the mountain.”
5. If You Didn’t Reach the Top, It Doesn’t Mean You Didn’t Do Something Incredible
We did not make it to the top, but we did make it to 13,888 feet above sea level! That is incredible for a seven- and five-year-old. They worked hard, supported each other, persevered, and did their very best. There is always another mountain to try to climb, but more importantly, there is the accomplishment in completing the hardest hike of their life and making it to their highest elevation to date. I have no doubt they will both hike plenty of 14ers in the years to come. My five-year-old keeps saying, “I was so close!” He is right, but more importantly, at five years old, he did something amazing!
The same goes for financial goals. Maybe you did not quite save enough to pay for college, but did you save enough to pay for 80% of college? That is 80% less in loans you or your child will need to take out! When things do not end up the way we plan, we need to celebrate the wins. When the time is right, we can set new goals to do better the next time. As humans, we always have the ability to grow, change, and improve.
What mountains are you trying to climb? What will the climb look like for you? Stick with it, and you will accomplish amazing things!
Erica Mathews is a CERTIFIED FINANCIAL PLANNER™ Professional with Financial Counseling Associates, a small, family-owned, independent, financial planning and investment management firm. She is passionate about helping families and individuals build their wealth so they can live out the calls God has placed on their hearts. As a wife, mom of four, and businesswoman, she understands the complexities of family life and helps relieve the burden of financial stress with organization, a plan, and automation so her clients hit their goals. She lives in Colorado with her husband and four kids. They love everything outdoors including gardening, hiking, biking and simply exploring nature. If you would like to reach out to Erica, her email is erica@fca-inc.com.