Self-control is an important characteristic that can help us in all aspects of our lives from biting our tongue, to passing on the sweet treat, to accomplishing our New Year’s resolutions. But self-control isn’t easy! In fact, it can be downright painful, especially when trying to control some urge.
It’s Not About Willpower
Many people say what they need is more willpower and discipline, but that isn’t it. And thank goodness because we have a limited amount willpower that depletes quickly.
James Clear, author of Atomic Habits, said, “The people with the best self-control are typically the ones who need to use it the least…the way to improve these qualities is not by wishing you were a more disciplined person, but by creating a more disciplined environment.”1 (emphasis mine)
It’s About the Environment
When we engage in an activity that requires self-control, we should seek to create an environment that will lessen the need to use self-control. If we are seeking a healthier lifestyle, for example, it is easier to accomplish this goal if we spend more time (and money) in the produce section and less in the bakery section of the grocery store.
We cannot control all environments we find ourselves in, but we can adjust many of them to create an easier environment to behave the way we wish to behave. Becoming, improving, and accomplishing is often just a product of our small daily decisions.
Your Investment Environment
The investment environment is one that investors can control pretty easily. Most investors prefer peace to anxiety and stability to volatility. The markets, which are uncertain and volatile by nature, will not provide that. But choosing not to tune in, not to look at every market move and sensational news headline, produces an environment much more conducive to experience peace and stability.
No matter what you are seeking to accomplish, changing your environment can be much easier than exercising willpower to act in the way you hope and wish to act. And when it comes to investing and financial matters, I am here to help you reach your goals, and help you feel confidence and peace along the financial journey.
© The Behavioral Finance Network
1. Clear, James. Atomic Habits. 2018