Long term thinking is a valuable skill that can help you achieve more in life and career.
OPINION
Time is a scarce and precious resource that we all have. It is finite, irreversible, and uncertain. We cannot create more time, undo what we have done with our time, or know for sure how much time we have left. Therefore, it is important to use our time wisely… and plan by thinking long-term.
The ability to think beyond the present, considering the implications of our actions and decisions in the future, is valuable. It can help us achieve our goals, avoid regrets, and create a positive impact on the world by prioritising our tasks and activities according to their importance and urgency.
By focusing on what matters most, we can avoid wasting time. This helps us set realistic, achievable goals that align with our values and vision by having a clear direction and purpose.
It can help us anticipate and prepare for potential challenges and opportunities that may arise. By being proactive and adaptable, we can overcome obstacles, and seize opportunities that may otherwise be missed.
It can help us learn from our past experiences and improve ourselves. By reflecting on what we have done well and what we can do better, we can grow and develop our skills and knowledge.
It can also help us make a positive difference in the world. By considering how our actions and decisions affect others and the environment, we can contribute to the well-being of humanity and the planet.
Playing the long game can also help us avoid some short-sighted pitfalls such as making decisions based on incomplete or inaccurate information, or setting unrealistic expectations that are too high or too low for yourself (or others). It can help to temper impatience against giving up too easily and manage unrealistic expectations for immediate results. And it can help you avoid settling for mediocrity or failing to challenge yourself – resulting in stagnation.
Long-term thinking is a valuable skill that can help you achieve more in life and career. By thinking long-term, you can create a vision that inspires you, plan a strategy that guides you, and take action that moves you closer to your desired future.
As with most skills, starting out is not always easy. Thankfully it can be cultivated with practice and intention. Some ways to increase your long-term thinking prowess are:
· Speaking to the future. Use words that reflect your future orientation, such as “future”, “plan”, “foresight”, “dream”, and “vision”.
· Setting SMART goals. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. These criteria can help you define your long-term goals and track your progress.
· Seeking feedback. Ask for input from others who have different perspectives or experiences than you. They can help you validate your assumptions, identify potential risks, and discover new opportunities.
· Learning from others. Find role models or mentors who have achieved long-term success in your field of interest. Learn from their stories, strategies, and advice.
· Reviewing and reflection. Periodically review your long-term goals and evaluate your performance. Celebrate your achievements, acknowledge your challenges, and adjust your plans as needed.
Long-term thinking is a valuable tool in wealth management, succession and financial planning terms.
Firstly, it allows investors to benefit from compound interest over a longer period of time, which can lead to significant growth in their portfolio. Keeping the numbers simple for this example, $100 at 10% interest over 10 years would generate $159 in compound interest. Imagine what the result of regular contributions to a long-term plan might be.
Secondly, long-term investors are better equipped to ride out short-term stock market volatility and avoid making hasty decisions in reaction to market movements. Markets will go up and down, but those who remain in their seat are better equipped to capture the highs than those who panic and sell out on the lows.
Thirdly, long-term investing can help investors avoid the emotional rollercoaster that comes with short-term investing. None of us need more stress in our lives, particularly financial stress from an unnecessarily risky short-term gamble.
Finally, long-term investing can be more efficient as it saves time and reduces the need for frequent trades. Investors get to spend more time on what is important to them.
When considering long-term investments, it’s important to have clear goals and a solid plan. It helps to have a clear idea of what you want to achieve; what your investment needs to do for you. If your goals are longer-term like saving for retirement, then the sooner you start investing, the better. It’s also important to determine how long you’re looking to invest and what level of risk you’re comfortable with.
If you’re interested in learning more about longer-term investing options, like KiwiSaver or other investments, consider sitting down with a trusted local fiduciary financial adviser for a chat.
· Bruce Jenks is a financial adviser at Stewart Group, a Hawke’s Bay and Wellington-based CEFEX certified financial planning and advisory firm. Stewart Group provides personal fiduciary services, Wealth Management, Risk Insurance & KiwiSaver scheme solutions. Article no. 325.
· The information provided, or any opinions expressed in this article, are of a general nature only and should not be construed or relied on as a recommendation to invest in a financial product or class of financial products. You should seek financial advice specific to your circumstances from an Authorised Financial Adviser before making any financial decisions. A disclosure statement can be obtained free of charge by calling 0800 878 961 or visit our website, www.stewartgroup.co.nz