Luck and gut feelings don't help you make money; you need to be able to adapt and stay strong when markets change. Just like how AI developers turn rough models into world-class systems by constantly improving them, investors build "grit" by learning, adjusting, and staying the same even when things get rough. As the head of technical innovation at Deemos (Hyper3D.AI), I've learned that our success has come from a long-term commitment to improvement, testing, failing, and getting better until we get it just right. That mindset mirrors the foundation of financial grit. You can't change the market, but you can change how you do things.
Financial grit refers to the financial discipline of sticking with your savings or investment plans regardless of what's going on in the world or markets. Financial grit does not mean you aren't afraid of anything. Financial grit means consistency. You can't make decisions on a whim or based on emotions or what the world is doing. As someone who owns a business, financial grit has helped me continue investing despite lean times by adjusting where we spend money rather than where we grow. Financial grit is like a muscle. Every time you decide not to do something short-term, it grows. The payoff isn't more money. It is knowing you're in control of your world rather than trying to react to it.
Financial grit is the ability to resist what may seem like a better opportunity for your financial future when, in reality, it merely drifts from your financial plan. Financial grit, then, is financial resilience. One thing that I see every day at San Diego Service Group is that it also holds true for us. Whether it is managing the budget for repairs or expanding our operations, it's not the people who have the maximum resources that end up succeeding, it's the people who adjust and continue. The same applies when it comes to managing our finances. The reality of grit when it comes to money is that it's investing, not sprinting. The goal is to finish well, not reach for the finish line every time the market moves.
Unfortunately, most of us aren't raised with much understanding or perspective on investment, so we tend to want to make emotional decisions instead of financial ones, and that gets us into trouble. Instead of getting used to setting retirement investments aside right out of our paycheck, for example, we keep postponing that because it feels like we'd be "losing" money we're currently used to spending. Or we get excited about particular companies in the news and buy into them instead of investing in boring but consistently high-performing funds. And when the market declines we panic and want to sell before it gets too bad, when in reality that just locks in our losses. Financial grit means having the discipline and perspective to hold the line. You set the money aside, you invest it in smart ways, and just keep going like a machine regardless of what the market might be doing at the moment.
Grit isn't about intense effort in short bursts — it's about consistent effort over time, fueled by a deep sense of purpose or interest. It's effort — applied consistently over years — that turns potential into achievement. This definition has informed my objective is to connect my clients to their "deep sense of purpose" and then define the specific efforts which need to happen consistently over time for them to achieve that purpose. I guide my clients to first get clear about life goals... "What circumstances do you want your money to create? What experiences do you want your money to enable? What do you want your money to make you FEEL?" These questions allow my clients to connect with their "deep sense of purpose or interest". I then ask what they're NOT willing to sacrifice to achieve those things. It could be vacations or sleeping soundly, going to the gym or tithing to their church. I want my clients clear about what "living well" feels like along the way to creating retirement savings which will provide the kind of future my clients want. After we've gotten specific about the numbers... i.e. how much will it take to create the defined future, and how much needs to be saved to get there, I then take my clients through the process of creating a "flow-based" spending plan. Instead of obsessing over rigid spending categories ("$150 for restaurants, $200 for clothes"), we set-up 2 checking accounts (respectively titled, FIXED and FLEX) and 1 savings account (titled, NON-MONTHLY). The FIXED checking account is the account into which the income flows. It covers all of life's fixed monthly expenses (utilities, mortgage, phone, etc). Then, after figuring out all the 'non-monthly' expenses (semi-annual insurance payments, quarterly bug treatments, 2x year sprinkler open/close) and determining how much is needed per/month in the NON-MONTHLY savings account, we transfer that sum into the savings account. Whatever remains is transferred into the FLEX checking account. This FLEX spending account is used to pay for all spending which requires an active decision (groceries, eating out, clothes shopping, coffee, etc). Concert tickets? A weekend getaway? If the money isn't in the FLEX spending account, then it isn't happening. The discipline to stick to this plan requires GRIT, consistent weekly/monthly behavior which is connected to clients' long-term goals and deep sense of purpose.
Financial grit is the willpower and stamina that is required to remain consistent with long-term financial objectives even when the market is volatile or experiences short-term failure. It is just like perseverance needed by homeowners and unity of professionals in large scale industry such as that of Alpine Roofing and Solar to accomplish the huge project due to uncertainty of weather and delay of material. Making financial grit a part of the investment behavior implies being able to contribute to the retirement account consistently, even in time of economic unpredictability, and avoid instant response to short-term market fluctuations. Similar to how regular roof maintenance saves money in the future as it prevents future expensive repair, regular investing and rebalancing helps to save money in the future as savings are not eroded. Defining milestones, automation of donations, and seeing lows in the market as an opportunity and not a threat all contribute to that resilience. The very attitude to durability and planning which is inherent in a well-built roof may be utilized in individual finance: gradual, consistent investment is the surest safeguard of the future.
In a few words, 'financial grit' is the determination to stay committed to your financial goals, whatever financial goals you set for yourself. This commitment should go beyond what the markets and life throw at you. Essentially, it's being disciplined and consistent with your finances and strategies. For example, when markets dip, financial grit is what keeps you from abandoning your plan in a panic. Financial grit could mean saving consistently or making regular investment contributions. It's accepting that financial wealth takes time. It's also learning to stay calm when markets fluctuate and keeping your eyes on the bigger picture. Over time, this mindset doesn't just help you save more - it changes how you think about money altogether, turning short-term sacrifices into long-term wealth.
Estate Lawyer | Owner & Director at Empower Wills and Estate Lawyers
Answered 4 months ago
To answer your question, I believe that a financial grit is nothing more than the combination of perseverance plus a positive attitude in the pursuit of a challenging goal such as retirement savings over long term despite experiencing downturns in the market, or even personal financial setbacks. You know what? My clients tell me that they get much better results with estates if they have this perseverance and resist the temptation to panic sell in the bear markets. At the same time, I see a good strategy to apply this grit in such a strategy as Dollar-Cost Averaging (DCA) which is the commitment to invest a certain amount at steady intervals regardless of what the market conditions are. I see professionally this discipline eliminates temptations of 'time the market' and locks you into a consistently long term investment schedule thus representing the needed perseverance. In saying that, however, when people do this, they are, in fact, future-proofing their retirement savings which at the end of the day mean large and safer estates for their beneficiaries.
Comprised of two dimensions Determination and Resilience financial grit is the ability to remain steadfast in passion or pursuit of long-term financial goals, regardless of significant challenges and apparent setbacks. It is a key ingredient, according to Goldman Sachs, when it comes to increasing retirement savings. That's discipline in terms of saving and investing over the long term, regardless of market volatility or life stuff. It's also about educated decisions, and risk-reward evaluations. It takes real financial grit to discipline yourself at investing and it's about focusing on making an investment plan, sticking with it while being flexible around the edges when necessary. It also means keeping up to date on personal finance and seeking expert guidance when necessary. With financial grit, let's embed that into our investment plans and improve the chances of confidently and resolutely meeting our retirement goals.
Financial grit is simply a new name for an old virtue: discipline. It is sticking to your plan when every instinct and every newspaper headline would tell you to sell. I see the opposite quite a bit in my personal injury work. An insurance company will delay a case for years, hoping that the financial stress felt by the client will create a sense of desperation. The clients who get the million dollar settlement are the ones with the financial grit to see the fight through to its conclusion. The ones who will take a $50,000 lowball offer in order to short-circuit the stress do not have the financial guts. You develop this financial grit by making your investment decisions before the panic starts. The best way to give you this capability is through automation. I have my contributions to retirement and investments automatically deducted every single payday. When the market falls 20 percent, I do not have to get the courage to buy. My plan does it for me. The automated constancy of this approach will create true wealth. It is just the opposite of reacting to fear.
Financial grit involves the skill of remaining sane in an otherwise chaotic environment in the market and investing long-term even when your gut is telling you to do so. I have seen hundreds of customers panic-selling when the market is on a decline only to discover the benefits later. It is more than mere persistence and it is having the moral stamina to continue with what you are planning when everyone around you is going mad. Over time in my experience in dealing with real estate and retirement accounts, I have been able to observe that the individuals that generate the wealth the most are not always the brightest or the ones with the highest incomes. They are those that automate their contributions, they do not get the desire to look at their balance every minute and they know that the increase in compounds takes time. The most successful clients were those who continued to invest in the havoc in 2020 despite the market falling. The practicality is simple; arrange automatic transfers to your retirement plans, build diversity in your portfolio that you can survive with when the rough times come and then turn off the noise every day. Most investors do not perform well in the market not because they are selecting poor investments but rather because they cannot help themselves to make emotional choices at the worst appropriate time.
Financial grit refers to not letting the market decline, cost rise or a short-term temptation to give up on long-term objectives should lead you to decrease saving and investing. It divides individuals who retire on a comfortable basis and those who resume saving several times due to panic-selling when the market is bad or withdrawing their retirement savings to cover non-emergency cases. The idea does not relate more to the matter of will power, but rather constructs mechanisms where emotional decision-making is not part of your wealth-building strategy. Though adding financial grit to the investment habits implies automating contributions such that money transfers into the retirement accounts before it can show up in your checking account. Establish percentage-based increases that automatically activate with each increase, and devote not to tamper with investments in at least five years no matter what the headlines are screaming of market crashes. It is not the brilliant trades that make the investors who construct real wealth but the investors who continue to contribute throughout the economic cycles.
Financial grit implies making very disciplined and consistent decisions despite the changes in the market or unforeseen costs. To the people who are close to retirement or those who have already retired, it is a matter of patience and stability, of not giving up, but instead making sure that the money saved is spent on necessities rather than frivolous spending sprees in the short term. Similar attitude is observed at the McPherson Medical Supply where customers are making their healthcare expenditure decisions in a strategic manner. They consider what will help them feel more comfortable, more mobile, and more independent in the long term, as opposed to responding to every new product or promotion. That principle can also be applied to investments by ensuring that one sets specific objectives, automates their contributions and puts more emphasis on reliable returns as opposed to following fads. Financial grit concerns persistence - being able to remain faithful to a plan in times of uncertainty. As the investment in durable medical equipment has longevity, long-term retirement security can be ensured through disciplined investing that is based on resilience and restraint.
The financial grit is the ability to remain consistent in terms of saving and investing despite when the circumstances put a strain on the patience or comfort. The same kind of attitude is evident at Health Rising DPC, where long-term health is viewed in terms of gradual progress, rather than vigorous effort. Financial grit is essentially contributing through market recessions, spending moderation (not excessively), and seeing every deposit as a promise to a better future, not a temporary cost. It begins by creating it automatically by transferring into retirement or investment accounts thus making saving a habit rather than a choice. It also aids in the establishment of precise value-based objectives- like investing in future medical requirements or having independence in old age. Persistence becomes less difficult when the financial choices are made on an intentional basis rather than an immediate basis. The principle is the reflection of preventive care: the little and regular action piles up to the security.
Financial Grit is a psychological construct that refers to a person's ability to be persistent, disciplined, and resilient in the face of financial adversity and market volatility. It involves qualities such as critical thinking, discernment, self-control, and the ability to exercise restraint in the financial and investment sectors. In this way, entrepreneurs and investors can stick to their strategy, learn from mistakes, and avoid them in the future, thereby maximizing their results, achieving specific financial goals, and minimizing risky scenarios. Some of the most tangible and viable ways to incorporate Financial Grit are: -Structure a financial plan that leads you to specific goals. -Develop a strategy according to the possible risks in your sector. -Automate investments to reinforce consistency and prevent emotional decisions. -Rely on services that offer financial advice to adhere to the plan initially proposed. -Learn from mistakes, be flexible, and adjust strategies when necessary. -Monitor investments continuously but avoid obsessively reviewing them in relation to daily market movements.
"Financial grit" can mean a lot of different specific things as it relates to money and retirement savings, but I would say that the overall meaning is working hard on optimizing your finances. This means being strategic with things like investing and being very intentional about the money moves you make. With investing, you should work hard to make smart investment decisions that you intend to help specifically with your retirement savings, and you should spend time on them to make sure they are fruitful.
Financial grit is to not give in when the markets become bad and your portfolio plummets by 20 percent in a night. It is the capacity to continue making contributions towards your 401(k) in full knowledge that all the headlines are yelling in that the economy is in recession. I have also seen clients selling panicly when the market is down before they miss the upward trend over a matter of months. The attitude transcends the power of will. It is creating frameworks that eliminate emotion in the formula. I have automated transfers that deposit on my retirement plans before I lay my hands on the money. In the case of the 2020 when real estate transactions became frozen, I continued to finance my accounts since the automation did not regard fear. The difference between a winning and a losing investor is not intelligence or the time to get in the market. It's showing up consistently. I have borrowers who have earned millions out of selling properties and never saved their money as they pursue the next deal. In the meantime, clients who automated smaller amounts accumulated sizeable retirement wealth. The hardest part? Being patient when you feel like selling. In this case, brokers who did not give up their plans and stuck to their investments despite continued downturn in the economy have fully recovered as of 2013. Individuals that had sold locked in permanent losses. Financial grit implies that you will stick to your long-term plan than the short-term panic.
Having financial grit means having the persistence and discipline to achieve long-term financial goals like saving for retirement even when you face obstacles or mistakes along the way. It means having a disciplined approach with your finances, continuing to invest regularly and not reacting emotionally to the market fluctuations. By projecting financial grit to the world of investing, individuals will have concrete goals on how much they want to save, they can set their contributions, for instance, to their retirement accounts on autopilot and act disciplined when the market goes haywire. Another important step is learning about finances, giving you the tools to make can decisions regarding your money and helping you feel secure. And thus aligning those investments to their goals and risk tolerances for the long run as close as those investments can be by constantly monitoring and active management.
In the slow season, I'd still stage homes. Every quarter I took a chunk of my flip profits and put it straight into a long-term reserve. Seeing that money there is what kept me going when the whole market was struggling. If you want to actually save for retirement, you have to stick with those small habits, even when it's tough. No way around it.
Financial grit to me is the habit of defending the floor before you chase the ceiling. I learned it running SourcingXpro when a 1000 USD MOQ refund once hit the same week a client delayed payment. I stopped playing for upside until I had a cash buffer sized to cover that exact pattern. Only after that layer was sealed did I invest the excess on a schedule I don't debate with myself. Anyway grit is not willpower, it is pre-committing rules so you don't bargain later. Since I did that my miss-cash months dropped to near zero and stress fell with it.