Seven investing lessons from Arnold Schwarzenegger 

Arnold bemoans the fact that too many people lack a life vision and plan. He then goes on to explain how he always has, and that is part of the secret of his success across three very different fields. So, the first lesson for investors is a similar one – set lifetime goals, create a financial plan that will help you achieve them, and don’t give up on it (albeit you may need to modify it as your circumstances change).  

Never think small  

The next observation he makes is that many of us are constrained by a self-imposed lack of ambition. Savers can fall into the same trap if they only ever prioritise getting through the next day, week or month and forget about looking after their “future selves”. This requires a bit of vision and foresight. Furthermore, it is vital that we all harness the immense power of compound growth – by all means, start by investing small amounts (according to what you can afford) but look ahead and realise that these small investments can become much larger with the right long-term strategy. In short, even if you start small, think much bigger.   

Work hard  

“Investing should be simple, but it is not easy.” So said legendary US investor Warren Buffett. Success in investing takes knowledge, skill, time, and effort. Knowledge, in particular, is power when it comes to long-term saving. Anyone not prepared to put in the hours (and there are many reasons why we may not be able to, or indeed want to) should think carefully about handing over their investment strategy to someone who already has, and can act accordingly on their behalf.  

Sell, sell, sell  

What Arnold is talking about here is the importance of making sure other people grasp your personal goals and vision. When it comes to investing, this is also a key skill within families where different generations may have to pull together to achieve the right results. For example, the “Bank of Grandma and Grandpa” may be able to help younger generations with their education, or first property purchase. But getting everyone aligned may need some tricky conversations and for an individual within the family unit, or a third party, to take the lead.  

Shift gears  

“I don’t just want to survive; I want to thrive.” Investors can learn from this key life lesson – it suggests we sometimes need to leave our comfort zone behind (typically cash in the case of savers) and take some risk (by, say, investing in shares). Or it implies that we should see asset price dips as opportunities rather than threats.