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.
Making Your Own Success
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 rule: 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.
Success in Investing
The media often refers to “smart money.” (I don’t know why because following the media’s advice can result in pretty costly financial decisions.) But 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.
I understand the urges, how we can alleviate them, and what is required to remain focused on what is truly important. I enjoy having these conversations because helping clients achieve success is my ultimate goal.
Wishing you the best in 2024,
© The Behavioral Finance Network