Mindset Habit #2

ROI

You’ve likely heard this term thrown out around money, but taking this concept and applying it to our energy and the choices we make is a WAY BETTER use of the concept.

This is taken directly out of Investing Answers:

WHAT IS ROI:

Return on investment (ROI) measures the gain or loss generated on an investment relative to the amount of money invested. ROI is usually expressed as a percentage and is typically used for personal financial decisions to compare a company's profitability or to compare the efficiency of different investments.

The return on investment formula is:

ROI = (Net Profit / Cost of Investment) x 100

(EXAMPLE):

If an investor buys $1,000 worth of stocks and sells the shares two years later for $1,200. The net profit from the investment would be $200 and the ROI would be calculated as follows:

ROI = (200 / 1,000) x 100 = 20%

Asking about potential ROI when investing money is super smart because it would NOT be smart to invest in something that would give us a negative ROI. In fact, you’d think someone was a little loose between the ears if they knew something was going to give them a negative return but they chose to do it anyway. Yet, we don’t always consider this concept in our daily actions.

What if we applied this concept to everything we do in life?

As overwhelming as it is to think about, not thinking about ROI on our choices and what we’re giving energy to can affect us GREATLY.

An example: how many hours a day do you spend on instagram?

Do you feel uplifted or connected or inspired afterward?

Do you feel drained or worse about your life or like you’re in the comparison trap afterward?

If the answer is the latter, why are you choosing to invest your time there, and what is the ROI?

We have the choice to pick things to give our time to. We have a choice in the things we invest our energy in. If we are choosing things (and people and behaviors) that are a negative ROI, how does that affect the rest of our days, weeks, lives?

If you get the Formation emails, I recently talked about this with drinking. Here’s a little excerpt:

[When I was a young buck, I could pound drinks without considering the ramifications of the next day. I remember teaching summer camp as a counselor, and when the kids went home, the camp staff would get the party started. I could hang until 1:00-2:00 in the morning, then be back up bright eyed and bushy tailed without feeling anything the next day. 

Now, if I have anything over 2 drinks, I know my following morning is shot. 4 drinks? Count me out until noon.  

It wasn't until recently that I started considering drinking ROI. 

It's fun to keep the party going, but at what return on investment? 

I'll now ask myself, "is having another drink and feeling buzzed/drunk for another half hour to an hour tonight worth feeling shitty for an additional 2-3 hours tomorrow?"  

If the answer is no, I won't have another.]

This can be applied to time spent with people, social media, food, drinks, working out, foam rolling, meditating, reading, news we consume, activities, ANYTHING.

So, your mindset habit #2 is a two parter:

THIS WEEK: Be mindful of ROI during your daily activities.

This is TRICKY. It will be challenging, and you’ll forget about doing it until something drains your energy, and then you’ll remember - Oh yeah - ROI. But, start to take note if something makes you feel better after you spend time doing it or if it makes you feel worse. Week one will just be noticing.

NEXT WEEK: Spend a little more time on the things that give you positive ROI, and cut a little of the things that give you negative ROI.