Time to Think

In his book Blink, Malcolm Gladwell proves a vital point about our thought process. And that is: Most people think way too long over the major things in their life and way too little over the common and mundane things. This leads to mental constipation which inhibits the ability of most individuals from ever realizing or becoming what they were created to be.

Lance Wallnau speaks about this same mental process in his audio series “In a Heart Beat.” Lance has you imagine what would happen if your child was screaming and carrying on after you’d already told your child to settle down and be quiet. As you turn to deal with your child regarding the noise they are creating, what emotional changes take place inside you as you find out that this time your child is screaming and carrying on because their finger is pinched in the door? How long did it take you to change your emotions? How long did you have to think about it? Did your change of emotion stimulate you to take action? Was that action an important decision? Was it a critical decision? What would have happened had you not been able to make that decision as quickly? Was it hard to make that decision? Was your decision the right decision?

I get to observe all kinds of decision making processes as I coach people financially. Some people are very slow and methodical in there decision making process. Others are fairly quick and precise. While others ponder and deliberate but can never make a decision and that, quite frankly, critically deters their financial potential because making decisions is critical in life. And how you make those decisions is largely based on the knowledge you have accumulated prior to the time you need to make your decision. Critical decision, however at times need to be made fairly rapidly in order to capitalize on some opportunity or to prevent injury or damage from occurring to yourself or others.

Being involved in the risks of the stock market is a good example of having to make decisions fairly rapidly in order to prevent damage from occurring. But I am amazed at how many people cannot make that essential decision about what to do with their portfolio once the market turns against them. The most common decision is no decision at all and that indecisiveness causes most folks to earn less in their investment portfolio (401K, IRA, mutual funds and money market accounts) than what they are losing to the cost of inflation. [i]

Learning to make critical decisions fast can therefore be necessary not only to be a responsible parent but fast decision making can also be vital to your own long term survival.

This is why I find it so important to continue to educate people on what is really happening with their money...the money that you are compelled to use and exchange with in today’s economy. What decisions can you make today that will prevent you from financial disaster in the future? One of those critical decisions is to have your money working for you without risk. That way you are never put into a position that you have to make a fast decision without the proper knowledge base. This one method of financial planning creates more wealth over time than any other method of financial planning. And unlike other methods it doesn’t prevent you from using your money while you money is still earning interest for you.

Learning and understanding secure and safe methods available in today’s economy will provide you with the foundational knowledge of what is necessary to enable you to make critical decisions efficiently at your own pace instead of being harried to make a decision without proper knowledge when the market drops out from under you next time. Such wise planning can prevent you many a heart ache tomorrow while providing an increased lifestyle for you today and a legacy for you in the future.

By Tomas McFie
[i] Dalbar Study Results Reveal Investor's Ineptitude