CategoriesReframe your thoughts

Oversimplifying Complicates Matters

By grouping large segments of a population, we often distort useful information. Oversimplifying complicates matters. This shorthand can highlight issues which only affect smaller groups of people.

Samples from the Financial Times yesterday are as follows: ‘Investors rush into corporate debt’ and ‘America celebrates Juneteenth’. These two phrases were combined as one headline. It struck me as unlikely that all investors were rushing into corporate debt. The reason I say this is that some investors only invest in equities or government debt. Meanwhile, others focus on real estate. As for any holiday or special day, some people celebrate, while others just enjoy the time off. In addition, other people may have to work. While still others may not even realise what the day is meant to represent so wouldn’t be celebrating it.

One of my favourite examples of oversimplifying is when the media pundits kept saying ‘Britain voted for Brexit’. This shorthand, and those above, imply the words ‘all’ or ‘all of’ at the start of the sentence. This is usually quite inaccurate. It would be nice if the writer could quantify the group a little better. The Brexit result was 51.89% to 48.11% so hardly justifies an implied ‘all’.

Noting that ‘some’ or ‘some of’ would be a helpful start. Perhaps a percent figure would be even better. Sometimes a different structure altogether would be an improvement. Something like ‘Britain voted. Brexit wins marginally.’

Remember these points when you are speaking to someone with a different opinion than you. Often you will be on much more common ground than you think. However, remember that oversimplifying complicates matters.

0
CategoriesActionReframe your thoughtsTime

Making Your Next Episode

Your life could be viewed as a movie, mini-series, or tv show. Although it is probably most like a tv show. Making your next episode is a weekly occurrence.

With that in mind, how do you rate your life? Is it a drama, sit-com, tense thriller or mind numbingly drab? How do others see it? How would you like to see it?

The amazing thing is, you are making the next episode as your day unfolds. You are the writer, casting director, overall director, executive producer and star of the show. In the early seasons you were primarily the star. Your parents played the other roles in the credits. But once you turned 10, you started heavily influencing the other production roles.

You may like to feel as though you’ve given up artistic control, or never actually had it. However, every day you should remind yourself that it is you that makes the bulk of the decisions in your life. You decide if you are a stunning, fit and joyful lead character. You also decide if your role is that of a tired, bored or restless individual.

The people on the set are all selected by you to create the ambiance, atmosphere and interaction. Scenes start and end how and when you want them to. If a storyline isn’t working for you, you can just leave it on the cutting room floor.

Every week, you are making your next episode. Pay close attention to how you write the script for this week.

0
CategoriesActionReframe your thoughtsTime

Be Confident In Your Position

You know what the best path is already. Don’t let others distract you or put you off. Be confident in your position. Carry on with your plans.

Often times we know the best solution to a given situation. We may not have 100% of the information but we need to make the decision. No one ever has 100% of all the relevant and related information. You need to have enough information, and a good feeling about things, to then press on to the conclusion.

I like Colin Powell’s 40-70 rule in this regard. With less than 40% of total information, your odds of making a good decision are lower. Obtaining more than 70% of the total information is time consuming and unlikely to change your decision.

Who knows what ‘total information’ really means? And how does one truly measure 40% or 70%? Don’t get caught up in these things. It is a rule of thumb. Get to where you feel pretty confident in the decision you are about to make. Know that the information you have is accurate and from a good source. Then get on with the decision and move to execution.

Usually you can adjust later if the decision did not bring about the outcome you were looking for.

If you have experts with field experience providing your information, you should be fine.

Be confident in your position.

0
CategoriesGratitudeObserveProgressTime

Those Days Are Gone

Everything that starts will eventually end. Whether it is a game, a job or even breakfast. Those days are gone and not being revisited.

It is such a strange concept how we see things coming in the future. Then we experience something for a brief moment. Then the moment passes us and becomes ever more distant.

For example, we look forward to a birthday, event or holiday for months. Each day that passes can seem to take forever. Our anticipation grows stronger as we inch closer to the moment. Then we want to capture the moment and keep it forever. And we do, but the intensity tends to fade with time. And it becomes diluted by all the other memories we have.

This struck me while going to pick up my daughter from school the other day. She’ll be able to walk to school on her own in September. Mom and Dad will no longer be required. Those little chats we have and seeing her interact with her friends at the school gate will be things of the past.

These days are coming to an end. I recall the sentiment of other parents with older children. Some were elated to no longer have to be there each morning and afternoon. Others were saddened by the end of the era. I presume many were both. I know I will be.

This is simply the way life is. We all pass through stages. Things start and things stop.

Enjoy every moment you can before those days are gone.

0
CategoriesObserveThink About ItTime

Forecast For Fun

Few things can be known for certain. We play the odds all the time. In everything we do there is risk. We forecast for fun but often our lives depend on it.

There are many words similar to forecast, such as prediction, estimate or guess. We can also foretell, prophesy or even prognosticate, even if it does sound funny to say. I cannot foretell if you will agree with me or not. However, everyone is playing the odds at every moment.

We all like a little forecasting. We hope the weather forecast is spot on when it says sunny and warm. Some folks like to place a wager on their ability to foretell the future. We do this with the stock market and sports and while in the confines of a casino.

Amongst our friends we might guess what scores we will get on an exam or how a mini series may turn out. There is no end to the amount of things we are willing to bet on. Have a flutter for some fun. Sometimes we assess the risk and other times not.

When you cross a road at 05:00 and there isn’t a car in sight, you are still taking a risk. You could trip and whack your head on the pavement. However, your odds of safely and successfully crossing are close to 99.9%. Crossing a busy road during the middle of the day may carry a similar probability but there is a greater risk of an unsuccessful cross.

Forecast for fun but remember there is a level of risk for all activities.

0
CategoriesActionGratitudeReframe your thoughts

Smile And Laugh More

Force yourself to do it if you have to. This idea seems crazy but we can forget to see the lighter side of things. Smile and laugh more because it feels good and others respond well to it.

Sometimes we take life, or ourselves and our situation, a little too seriously. It is easy to do. We can get caught up in the hub bub of daily life and just press on through. But it is so nice to see people smile and hear others laughing. It often makes us want to smile and laugh too. It is a wonderful way to quickly feel better about things.

Think of a fun time you had with a friend recently, or 20 years ago. Hold that thought. Hear the laughter in your mind and feel the giant smile on your face. Maybe you did something that scared you a little. Maybe it felt daring or a bit crazy. You did it though! And you can relive that memory as often as you like. It is free and provides a great feeling.

Think of those favourite songs of yours. Think of the happy ones, not the break up, drown your sorrows ones. Maybe some favourite scenes in some great movies do it for you. A great vacation or an activity you did or shared with others could be the smile trigger. Get five or six of these great memories and moments and write them down. Note a few key words to remind you of each one. Keep it in your pocket or on your phone. Look at it often.

Smile and laugh more. We’ll all benefit.

0
CategoriesFinancialGratitudeThink About It

Feeling Grown Up

At what point do people feel like an adult? There are many times that people say they feel 18, 23 or 28. Feeling grown up means different things to different people.

Some people feel grown up when they can drive a car on their own. Others are instilled with civic duty, so voting is their grown up moment. For others it could be travel overseas on their own, getting married, having kids, buying a property or having a senior role in a prestigious company.

There probably isn’t just one grown up moment for anyone. Different moments will elicit a range of feelings and emotions. Perhaps they build on each other until you feel you are doing grown up stuff all the time.

There can be a lot to unpack in just how people approach this term. Are you grown up because you are serious or take on a level of responsibility? Owning an impressive house can feel grown up to some. It may depend on what they say ‘grown ups’ do or what seemed to be expected for that group when they were young.

Being grown up may just be moments of taking particular responsibility for yourself, your future and others around you.

Feeling grown up can be a mental burden for some. Remember to let your hair down occasionally.

0
CategoriesActionReframe your thoughts

How Do I Do That?

You probably don’t know this, but this is the most important question in your life. For everything that interests you, ask “How do I do that?”

Ask yourself or Google or anyone, to start. Then upgrade to people who have some experience in that space or activity. Then start asking people with greater success than them. Read books on it. Search it up on the internet. Speak to practitioners, professors, experts, gurus, journalists, commentators and avid fans of the activity.

Too often we start off on the wrong foot for these things we want. Sometimes we just sit there amazed it is being done. We don’t even consider it as something we could do. Even if we do think we would fancy a go at it, we too often think, “No chance, not me. I couldn’t do that.” Well neither could the person doing it now, when they first started.

Sure it looks difficult or even ‘scary’. But so did most of the great things you’ve done in your life. Like learning to walk, asking someone out, skateboarding, or living on your own.

If you want to super charge your life for fun, excitement, thrills and happiness, start asking this question and follow the process.

How do I do that?

0
CategoriesActionFinancialObserveReframe your thoughtsTime

The Power Of Compounding

Following on from the last few days, I’m combining retirement thoughts with compounding. The power of compounding is quite incredible.

I read an article recently about setting aside almost $3,000 for a child when they are born. This money could come from parents, grandparents, uncles and aunties or even from crowdfunding, I suppose.

The idea was that you could put that $3,000 into a low cost S&P 500 index fund and just let it sit there for 65 years. You would not take any out, nor would you need to put any more in. You would just let it roll over and compound.

Using the figures from the article, it noted the S&P had delivered an average annual return of between 10% and 11% in its nearly 100 years of existence. If it continued to average that rate, or even a little less (9.5%), the account would be worth over $1m by their 65th birthday.

This is more than 90% of what people would have in their retirement savings. By doing this one thing, during pregnancy or within the year after their birth, you would set them up for retirement. Regardless how their financial habits developed, they could always count on their $1m retirement fund when they turned 65.

The power of compounding is compelling.

0
CategoriesObserveThink About ItTime

See Compounding In Nature

Financial compounding is sometimes considered a wonder of the world. However, you can see compounding in nature too, if you look for it.

Let’s first review the common example of a penny doubled every day for 30 days. Would you rather be patient for 30 days or have $1m today?

Being patient pays off. After 30 days of doubling, that humble penny will be worth over $5m!! This is why consistent and frequent saving and investing is important for financial freedom. In the longer run, the difference can be very large.

We see compounding effects elsewhere too. Global population growth has shown strong growth over the last 100 years. It took thousand of years to reach the first billion people on Earth (1804). The second billion took 123 years. The third billion was only 33 years after that. You get the picture.

You also see this in animals, rodents, bugs, birds etc. And think how a chicken can produce one egg per day. Get a rooster involved and you can soon have dozens of chickens laying eggs and producing more chickens And more eggs to eat. Now some people aren’t so patient and want to eat the chicken for meat on day one. And then struggle or starve after that.

Think ahead, be patient and let nature take its course. When you see compounding in nature, use it to your benefit.

0