By Kristi Waterworth – Published July 31, 2024

With 66% of Americans living paycheck to paycheck, it can be easy to give up on trying to make a difference.  The problem is huge, the help is limited, and the solution must be systemic.  But, quitting isn’t really what we’re about at The Motley Fool Foundation.

We believe that there is a path to Financial Freedom for all who seek it.  We’re realistic optimists, though, and we know it’s going to take some work to get there.  That’s why we’re forever in your debt for the time, talent, and treasure you continue to provide The Foundation to support these efforts.

What is realistic optimism?

Realistic optimism, simply put, is optimism that’s rooted in the soil.  It’s not a pie-in-the-sky kind of optimism that believes there’s no way to fail, or that every cloud has a silver lining.  Oh, no.  Realistic optimism is just that – it’s realistic.  It’s optimism that’s underscored with the realities of the challenges we face as a foundation, and the realities that people face as individuals trying to improve their financial situation.

It’s vital that anyone invested in creating a better financial future, either as the source of change, or as the person experiencing the change, embrace realistic optimism.  Without it, we have a lot of hope, but not a lot of results, because as soon as we hit a roadblock, we just don’t know what to do next and that little bit of hope driving us onward can be dashed in the confusion.

Realistic optimism gives us room to dream while we still plan for problems that might pop up along the way.

The Motley Fool Foundation and realistic optimism

At The Motley Fool Foundation, we wanted to create a way we could all help make a difference, together, but in doing so, we learned just how huge the problem is that we’re trying to overcome.  That’s why realistic optimism is so important for our work.  We’ve applied it to the ways that we fund projects, as well as who we choose to support through our philanthropic efforts.

“When I think about realistic optimism, I can’t help but think about the work we do every day, regardless of where the world is at a given moment, and with eyes wide open,” says Jennifer Gennaro Oxley, Executive Director of the Motley Fool Foundation.  “It’s not easy, and we get to do something incredibly positive and that gives me – and our friends living paycheck to paycheck – hope, as well as a new or innovative pathway to Financial Freedom.”

We do this through our primary program, the ImpactFool Fund*.

Our pilot program, The Rule Breakers, has been dedicated to supporting individuals who offer practical solutions to various aspects of Financial Freedom. From housing to education and work, these innovators assess community needs, analyze roadblocks, and create custom, scalable solutions that address the challenges participants face.

The ImpactFool Fund continues this mission but focuses on organizations with a wider reach and rapid scalability potential. These nonprofits are resourceful and diligent, ensuring that their funding and assistance provide sustained support until everyone in their programs has the opportunity to overcome their obstacles.

We believe in the immense power of optimism, but the work we’re doing is too important to rely on rainbows and butterflies to get the job done.  Instead, we’re looking for realistic paths to achieving the goals we know we can all achieve together.

The realistic optimism behind assessing Financial Freedom

Honestly, realistic optimism is one of the reasons we’ve been working on developing an assessment tool to help people see just where they are on their path to Financial Freedom.  It’s one thing to say to yourself that you’d like to have all your debt paid off, or that you’d like to own a home, or make more money at work, but to actually know where you are on the path becomes actionable data.

You can take that information and apply it to your personal timeline, and see just how much further you have to go – or how surprisingly close you may be to achieving your financial goals with just a few changes.

Knowing where you are on your path is realistic, and knowing that you can go from there and move forward is optimistic.  Knowing that you may hit a few bumps on your personal path, and being prepared for them, well that’s realistically optimistic.

Our first-of-its-kind Financial Freedom Assessment Tool is set to launch to a limited number of beta testers in August, of which we hope you’ll be one.  If you sign up now, you’ll be alerted to when the tool is available to help you start planning your realistically optimistic path to achieve your financial hopes and dreams.

*The ImpactFool Fund is not a traditional investment fund – but rather a Venture Philanthropy Fund where donations from our community are awarded to other nonprofits by The Motley Fool Foundation.