Why Staying In The Game Is The Best Strategy For Winning At Life

Want to win? Start by staying in the game

Every year, without exception, I see the exact same situation playing out at work. 

Bright, motivated and hard-working guys and girls begin their careers as investment banking analysts.

Almost immediately, the most ambitious and foresightful of the bunch start doing the rounds with the more senior members of the team, myself included.  This involves getting lunches together, going out for coffees and having other informal conversations.

The key topic of such conversations?  Soliciting advice on how to become a top-ranked analyst. 

And who can blame them?   After all, for the majority of their life, they followed a very simple formula for success:

Get top grades in school >> Get into a top university >> Get top grades at university >> Get a high-paying job.  Boom!

Therefore, it’s not at all surprising that they would be looking to apply the same formula to extend their success in the workplace – and, by corollary, life. 

Get a top ranking at work >> Get a great bonus >> Have a great life!

Right? 

Unfortunately, the moment you graduate from university, the goalposts shift.  The magic formula that worked well for so long breaks down before your hat lands on the ground at graduation ceremony. 

Being #1 is no longer the most important factor in determining your success.

Do you know what is?  Simply staying in the game. 

Burn Bright Or Burn Long? 

Let’s go back to my junior colleagues for a minute.

Becoming a top-ranked junior banker certainly has its advantages.  On average, first-year investment banking analysts get a year-end bonus of c.£32k. 

investment banker pay pre tax

The top performers can get paid significantly more, sometimes clearing bonuses of £40k or more.  That 25% increase in pay will come from the bonus bucket of below-average analysts.

There is, however, a price to pay for the outsize compensation. 

The top-ranked analysts typically work longer and harder than anyone else.  They get staffed on the most challenging deals and pitches. 

As a result, they typically work with more senior bankers.  And guess what?  Those senior bankers tend to be much more demanding. 

80-hour weeks can be the norm and it’s not unusual to clock 100+ hours a few weeks in a row.  And despite the portrayals in the media, you sure don’t spend those hundreds of hours doing this:

This is NOT investment banking

(Un)fortunately this aint’ your life as a banker

No matter how young, energetic and motivated you are, sustaining that kind of lifestyle is nearly impossible.   Some form of burnout is commonplace and almost inevitable.

As a result, the top analysts usually depart the bank in a few years. 

A select few will get hired away by private equity.  Others will leave for a corporate or pursue an MBA.  And some will just take a career break and do nothing for a year while they ponder their next move.    

In other words, they drop out – or take a break from the game.  And in doing so, forgo the financial rewards of just sticking it out.

Yes, a top-ranked analyst will have collected about £88k in bonuses by the time he burns out and leaves banking in two years. 

His middle-ranked colleague would only get about £70k or so over the same time period.  Yet she would get more sleep, more exercise and more social contact with her family and friends.

In other words, she would likely be happier. 

The result?  She probably stays put for another year or two.  And in those two years, she will clear another £145k. 

That leaves her far ahead of the high-flyer who knocked it out of the park – but only lasted two years.

Simply because she conserved her energy – and stayed in the game. 

The 90% Rule

If you work out on a regular basis, you are probably dreading January.  I do. 

The reason is that I know that come January, my gym will suddenly fill with more people than I have ever seen there before. 

That 6:30 am HIIT class will be fully booked seven days in advance.  The line for the treadmills will be going out the door.  And good luck trying to do some bench presses. 

The gym will be full of people working out six days a week for two hours straight. 

Yet magically, about four weeks into the year, the crowds will start thinning out – and I will start enjoying my workouts again.

Because thankfully, 90% of people quit the gym within three months of joining. 

Let’s face it – if the last time you got some exercise was in the playground, you are not going to look like these guys anytime soon. 

Not going to happen

Not even if you go to the gym for three hours a day, seven days a week.  You simply won’t get there. 

But you know who will? 

The people who start small.  The ones who start off by going twice a week for 30 minutes. 

A few months later, that twice-weekly, simple workout has become an entrenched habit.  At that point in time, they add a class or two – and drop the Saturday night burger and chips. 

When you bump into them in September, they’ve lost 15 pounds of fat and bench press their bodyweight ten times. 

Unlike the quitters back in January, they never burned out. 

They stayed in the game.  

And they are just getting started. 

Defying The Odds In Order To Lose

Let me give you another example.

It is a hard fact supported by historical data that losing money investing in the stock market over long periods of time is nearly impossible.

stock market investing - 15 year annual

And yet, year after year, millions of people defy the odds and walk away with painful losses.  Their returns, instead of looking like the ones above, look like this instead:

Average stock market investor performance

Yes, it’s that bad

The reasons are simple.  They try to time the market.  They pile in at the top.  Then they run for the hills at the bottom.

In other words, they don’t stay in the game. 

It doesn’t matter whether it’s writing, playing an instrument, learning a language, cooking – or (gasp!) reaching financial independence.

The reality is that it is nearly impossible NOT to achieve your goals – provided you put sufficient time in.

And the only way you can put sufficient time in is to stay in the game.

So I will leave you with the same message I give to my junior colleagues when they angle for a top ranking: 

Many will start fast.  Few will finish strong. 

Choose who you want to be. 

About Banker On FIRE

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Banker On FIRE is a London-based M&A (mergers and acquisitions) investment banker.  I am passionate about capital markets, behavioural economics, financial independence and living the best life possible.

Find out more here.  You can also follow me on Facebook and Twitter

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