Oftentimes we look at others’ and see circumstances that we believe may have contributed to their success. While circumstances may 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 predicts our level of success more than any other factor.
Success in Personal Life
Whether you want to be the best accountant, salesperson, professional athlete, doctor, parent, etc…, there is a simple formula for success. That formula is to do what other people aren’t willing to do and do it a lot. This can be applied to studying, working out, getting more experience or learning to be more patient.
Success isn’t a secret formula. Often the greatest difference between someone who is average and someone who is successful comes down to “doing it”. Doing the daily habits that will compound over time to success. It’s not easy – and that is why there are many average and few successful. But it is something we can each improve upon day by day.
Success in Investing
The media often refers to “Smart Money”. I don’t know why. The “Smart Money” make some pretty poor decisions. Their identification of “smart” is misleading. Intelligence has very little to do with investment success. In fact, 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 bad financial decisions.
These urges are natural, and they are hard to fight off. It takes a lot of mental toughness to ignore the media or the hot investment of the month. It takes mental toughness to ignore what your co-worker is bragging about. It takes perseverance to stick with your financial plan and exercise patience – especially when your plan doesn’t appear to be “working”. After all, no strategy will outperform all of the time.
Being patient and disciplined is not easy! It goes against what may feel right. But that's where a financial plan can help. At Acorn Consulting, we understand that we are here to help guide you along your financial journey. Just like with a personal trainer, sometimes it is easier to exhibit mental toughness when you have someone cheering you on.
©2019. The Behavioral Finance Network. Used with permission