The combination of long-term thinking and immediate actions will make future goals possible.
When it comes to planning in life, there are two perspectives you can take: You can adopt short-term thinking and concentrate on maximizing pleasure in the here and now, or you can think and plan long-term. Long-term thinking centers on being a step ahead and considering the consequences of your actions – and then the consequences of those consequences, and so on.
So which is better? Well, an overwhelming majority of people who are happy and successful also focus on long-term thinking.
In 1970, Harvard professor Edward Banfield, looked at people from different socioeconomic backgrounds and observed that the people who earned more money were the ones who thought ahead – often years or decades ahead. These are society’s smartest people. Yet their smartness didn’t come from having sky-high IQs; it came from their perspective, most notably their ability to think about how each of their actions would get them closer to their ultimate goals.
And this is just as important today. According to Forbes magazine, there were 290 new billionaires in 2015, 66 percent of whom were self-made and had started off with next to nothing. To generate this wealth from a standing start, long-term planning is key.
To join the ranks of these bright individuals, you must think about where you’d like to be in five years and then figure out what you have to do now to get there. This involves taking stock of your work and personal life, as well as your health and financial independence, and then making important decisions based on this information.
But it’s always worth remembering: Just formulating a great plan is not enough; you also need to act on it.
For example, are you thinking ahead about enjoying a comfortable retirement? A huge number of Americans – 70 percent, to be exact – live from paycheck to paycheck. They don’t think about saving or investing for the future; they prefer to think short-term, focusing on which car or gadget they can buy right now. When these people reach retirement age, they’re in for quite a shock.
If you want to avoid this fate, you need an action plan. Set up a savings account immediately and, every month, deposit 10 to 15 percent of your income. Through the miracle of compound interest, relatively tiny investments made at a young age – even as little as $100 a month – can grow into massive amounts by the time you’ve retired. Every moment you delay or focus on short-term gratification will cost you in your old age.
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To make better decisions, slow down your thinking.
Human thoughts are generally a bit like the bubbles in a glass of champagne – each one vanishes soon after it forms, along with countless others. Though there’s always plenty of mental sparkle and fizz, there is a definite lack of real substance.
Unfortunately, many of us let ourselves be dominated by these speeding, transitory thought bubbles. Rather than using our brain to think logically and sagely, we allow emotional, reactive thoughts to determine our actions. For example, when we get a ping on our phone, our brain compels us to instantly drop the task in hand and have a look. Or, when someone riles us up, our immediate, angry thoughts often lead us to lash out.
But it doesn’t have to be this way. We can use our brain more effectively.
According to Nobel Prize-winning psychologist Daniel Kahneman, there are two types of thought processes. There is the impulsive type of thinking that we just described, and then there is the slower, more rational process of thinking where we weigh all the options and make considered decisions. When planning important long-term goals, utilizing this slower method of thinking will lead to better decisions.
The good news is that the slower method is pretty easy to engage; the longer you take to make a decision, the more chance you give your slow-thinking brain to come up with the best answer.
Here are a few simple tricks you can use to slow down your thinking.
One great tactic is to take 72 hours before making any important decision. This will give you ample time to carefully mull over the various options.
Nothing gets the slow brain in gear like a period of solitude. Spending 30 minutes to an hour every day in a quiet, secluded spot will give your mind the time it needs to think. Shut off all distractions, such as phones and music, and let your mind flow like a river. Left alone to contemplate, it won’t be long before your mind starts generating great ideas and solutions.
Finally, go through each stage of the author’s GOSPA model to think carefully when contemplating long-term strategy.
Goals: What results do you ultimately want to achieve over a specific long-term period. For example, what growth target do you want to aim for over the next five years?
Objectives: The smaller targets that will get you closer to your main goals. For example, what level of growth should you be striving for this year?
Strategies: How will you achieve your objectives? For example, what marketing strategy will generate the required growth?
Priorities: Identify the most effective actions that will make your strategy a success.
Actions: The everyday work that will ultimately get you to your goals.
Going through the GOSPA model, stage by stage, will allow your slow-thinking brain the space to reach the best decisions. Next time you need to think of long-term strategy, be sure to use it.
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Success depends on intensive research and asking the right questions.
Here’s a question for you: Why is it that 80 percent of new products flop and have to be withdrawn?
According to Forbes magazine, the main factor determining whether a business will make it is customer demand for their product or service. Quite simply, if no one is willing to use your product, you’ll fail.
So how do you ensure that customers want what you’re selling?
Intensive research is at the heart of all business success stories. If you don’t know enough about your potential market, you’ll fail. It’s as simple as that.
Asking others is a great way to start. There is no substitute for expertise; experts in your field will almost certainly be able to assess the quality of your idea, so be sure to ask them. You should also look for people who’ve already trodden a similar path. A simple Google search for your potential idea will probably bring up information on what people have already found out. You can even ask these pioneers face-to-face. In short, go out of your way to get all the facts.
Once you have a basic idea for a workable product, it’s time to find out whether people will actually buy it. But don’t only seek out evidence of your product’s greatness. This could lead to confirmation bias, where you fixate on only finding information that validates your idea. Instead, you need to behave like a scientist.
Create a hypothesis about what you think your product will bring to the market, and then try to disprove it.
For example, imagine you’ve created a new type of laundry detergent. Your hypothesis will be something like, “I think people will buy my new-fangled laundry detergent.” Next, you try and prove why your hypothesis is wrong. Go out and encourage prospective customers to pick holes in your product; ask them why they wouldn’t buy it, or why they should go with a rival brand. If they still seem interested despite your campaign against it, you might have found a winner.
Naturally, this approach requires complete honesty on your part. If your idea or product is more important to you than the truth, then you won’t find out what you need to know about it. So adopt a total willingness to fail and learn – and judge your darlings by their true merits.
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Success in the modern world requires a flexible mind that continues learning.
Our world is constantly evolving. In fact, we’re living in one of the most tumultuous times in human history.
Therefore, to be successful, you need to be aware of technological advancements. Just consider the cautionary tale of Borders, the massive book retailer that went out of business after the Kindle and the iPad revolutionized the print industry.
Borders was bankrupted by its obliviousness, and if you want to avoid a similar fate, you’ll have to use flexible thinking. Flexible thinking can be best described as the ability to quickly react and adapt in the face of dramatic change. Unlike the executives at Borders, flexible thinkers will grasp the importance of change and innovation and adapt accordingly.
But how do you develop the right mind-set for flexible thinking?
The best way to keep yourself from falling into a comfort zone is to conduct what the author calls zero-based thinking. To do this, you must constantly question the value of everything you do. More specifically, you should ask yourself a hard question: “If I got the chance to do this from the beginning again, would I?”
Ask this simple question in every area of your life: for example, are you friends with a coworker who, if you started working at the company today, you wouldn’t befriend? Maybe there is someone who you used to love hanging out with but who you now think holds you back. Or maybe you’ve made a business decision or career choice that you realize you shouldn’t have?
Whatever uncomfortable conclusions zero-based thinking turns up, you must be ruthless in undoing these “mistakes.” This isn’t easy; you’ll need to admit that you made the wrong choice, and, even more importantly, you’ll have to accept that your investments in these areas – whether it be time, capital or emotions – will be lost. You simply have to accept this, and cut your losses. Painful as it is right now, it’ll be better in the long run.
Luckily, as hard as it is to cut out the activities that no longer bring reward, the results are worth it. You’ll come out with more time, more energy and an enormous sense of relief.
What’s more, you’ll become more flexible. You’ll find yourself in a better position, ready to drop the things that slow you down and grasp the new opportunities that come up.
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There are good and bad ways to use your brain. You can have a distracted and unfocused mind that only wants to learn about things that reinforce your negative preconceptions, or you can have a sharp and creative mind. The latter sees the positive things in life and finds success by being inquisitive, adaptable and innovative. So stop procrastinating, use flexible thinking, write down your goals, change your perspective and adopt the mind-set of the rich.
Actionable advice:
See the chance in every challenge.
Take a moment to think about your biggest problem. Now, instead of thinking of it as a problem, try to think of it as a gift – an opportunity to learn something about yourself. Maybe it’ll provide insight into your behavior and provide a chance for you to change the future and be more successful. Remember the words of Henry Ford: “Failure and hardships are chances to start all over again and to make it better.”
Suggested further reading: The Psychology of Selling by Brian Tracy
The Psychology of Selling (2004) will school you in the psychology of consumption. These reveal the techniques used by outstanding salespeople – techniques that you can use to increase your sales performance in any market.