Generally speaking, your outcomes in life are a lagging indicator of your habits. Your knowledge is the sum of your learning habits. Your health and fitness are the sum of your eating and exercise habits. Your net worth is the sum of your saving and investing habits. Getting the results you want is not only about setting the right goals. It’s also about following the right systems to achieve these goals.
For example, your computer desktop is a real mess. Nothing is filed properly, nothing is in order, you have problems to find things. Your goal might be to have it tidied up and well organized. So you take 1-2 hours and clean up, throw things out, and organize what’s left. This is great, but how long will this last? If you continue as you have done before and you don’t change your habits and adhere to a system it will soon be the same again.
Why is it so difficult to change? Because most of our daily behaviours are automatic. We follow unthinking routines because it frees up our minds to tackle the truly important issues we need to deal with. That’s why it’s crucial to put proper systems in place for the things that really matter. Tiny changes here can lead to dramatic results in your life. But they take time. You have to change your habits into routines.
A very good example: If you go to the gym three times, you are unlikely to notice any real changes to your body except for muscle ache. However, if you go to the gym regularly for six months and follow a proven routine, you will probably see incredible changes.
This is also valid for investments. Wealth is created by following a system, proven habits that lead to uncommon results. Therefore, you have to implement a system to adopt the right habits. E.g. you need asset allocation, a proper buy or sell discipline, avoid to trade on emotions and try to lower your fees and taxes.
Sven Franssen