People usually get that. The ones that don’t fall into the magical thinking group. They have uneven outcomes.
Clearly then, making good decisions is a good life skill.
Notice that decisions attached to no purpose usually turn out badly. There are clear reasons for that.
What do you want? When? Who helps? What resources are available? What is the measurement system?
The problem definition and the solution design.
Defining the problem matters most. A good start nearly preselects the how of doing it. Good problem definition provides motivation. It is easier to do things you understand.
Solution design ties tightly to the defined purpose. The tools and processes are more specific. Best of all you don’t become confused by what you did not choose. You know why you picked what you did.
Know how the resources work. In a Financial plan there is no reasonable expectation that you can earn 20% on your investments over a long time. Realistically, 3% after inflation and taxes is superb.
Understand time. Especially notice if you have a guarantee of getting a lot of it. Didn’t think so. After that observation look at patience. All good outcomes include patience.
Great wealth has an enormous time frame. They look at family money, not yield. They think in centuries, not months. One bought over a hundred acres in a major city. They built some rental properties with a view to paying expenses while they waited 100 years to develop it.
Most wealthy people use leverage sparingly. They see the future as inherently unknowable while the debt is rigid. Big variations in quoted value are immaterial if there is no debt to equity ratio agreement.
Few plans fail when there is a clear purpose, careful methods, discipline, patience, reasonable expectations and ongoing monitoring.
Don Shaughnessy arranges life insurance for people who understand the value of a life insured estate. He can be reached at The Protectors Group, a large insurance, employee benefits, and investment agency in Peterborough, Ontario.
In previous careers, he has been a partner in a large international public accounting firm, CEO of a software start-up, a partner in an energy management system importer, and briefly in the restaurant business.
Please be in touch if I can help you. firstname.lastname@example.org 866-285-7772