As the world watched the Olympics unfold in France this past month, we were reminded of the incredible dedication, precision, and perseverance of athletes striving for gold. Each competition offers not only thrilling moments but also valuable lessons that transcend sports and apply to many areas of life, including financial planning.

One powerful lesson comes from the story of Peter Vidmar, the captain of the gold medal-winning US Men’s Olympic Gymnastics Team in 1984. Peter’s journey to a "Perfect 10" on the pommel horse wasn’t about doubling his efforts or making drastic changes. Instead, it was about small, consistent improvements.

Peter once shared his insights during a visit to our office. He explained that the sentiment of working "twice as hard" often heard from parents, coaches, or teachers, while well-meaning, isn't mathematically sound. Most of the time, no matter how much we might want to, we simply can’t double any significant effort. It’s not possible in the case of a world-class athlete. In gymnastics, any gymnast hoping to make the Olympics must work out at least five hours a day. So if I’m going to double my training, I have to train 10 hours a day. Technically that may be possible, but from a physical standpoint, it makes no sense. It would be exhausting to the point of being counterproductive. So the key to improving isn’t to work twice as hard but just a fraction harder or smarter or longer. In the end, it’s the fraction that matters. Increase the quality of your effort bit by bit. Being the best is never really a matter of being twice as good as someone else. It’s usually measured by fractions​​​​​.

Consider the parallels: just as Peter Vidmar achieved Olympic success through incremental improvements, investors can achieve financial success by making small, consistent changes to their financial habits and strategies. Here’s how you can apply this principle:

1. Incremental Savings

You may need to double your savings rate, and that’s okay. The key is to start incrementally. Increase your savings by a small percentage each month. This gradual approach can make the process less daunting and more sustainable, leading to significant growth in your retirement fund or investment portfolio.

2. Consistent Investments with Risk Management

Instead of trying to time the market or make large, risky investments, focus on achieving consistency through effective risk management. This approach ensures that you are investing efficiently and effectively, minimizing potential losses and maximizing gains.

3. Adapting to Market Changes

Market fluctuations are inevitable, and a static portfolio may not always be the best approach. By making small, strategic adjustments based on market trends and signals, you can better navigate the ups and downs. This doesn’t mean overhauling your entire strategy but making calculated, incremental changes to stay aligned with market conditions.

Watching the Olympics, we witnessed firsthand the incredible results that come from small, consistent efforts. By making incremental adjustments and continuously refining your strategies, you can achieve lasting financial success. Embrace the journey, celebrate the progress, and keep moving forward one small step at a time.