Posted December 1, 2023
Posted December 1, 2023
As the year comes to an end, it’s a good time to reflect upon the year behind us. The good things, the bad things, and the success we achieved along the way.
Sometimes, we rely upon favorable circumstances to achieve success, but circumstances are often beyond our control. While our circumstances can make it easier or more difficult to achieve success, they do not create success on their own. Researchers have found that mental toughness and perseverance predict our level of success more than any other factor.
Jeff Olson, author of The Slight Edge, found that our personal success in life comes down to a simple formula. We generally know what activities will produce success in a given realm. Then we just apply the formula – Create simple daily disciplines and do them without fail. Notice the word “simple?” These should be small things you can do daily.
Success isn’t a secret formula. Often the greatest difference between achieving average results and being successful comes down to consistently doing the simple daily disciplines, the daily habits. These habits may not appear to be working in the short-term, but they will compound over time. Having perseverance and mental toughness is crucial to achieving success.
The media often refers to “smart money.” I don’t know why because they are known to make some pretty costly decisions. And intelligence has very little to do with investment success. Warren Buffett said that once you have an average IQ, what sets apart successful investors is their ability to control the urges that influence us to make unwise financial decisions.
These urges are natural, and they are hard to fight off. It takes mental toughness to ignore the feelings and headlines. It takes perseverance to remain disciplined and patient when the market is irrational.
But that is why you have me! I understand the urges, how we can alleviate them, and remain focused. I am here to help and guide you along your financial journey. Just like with a personal trainer, sometimes it is easier to exhibit mental toughness and persevere when you have someone cheering you on. Onward and upward!
© The Behavioral Finance Network
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