There are blogs everywhere that claim to have the secrets to becoming a millionaire, and they very well might have, but it always seems to be “Ten Things You Need to Do to Be Rich!” or something along those lines. Quite honestly, it’s easier than that! I can sum it up in one easy point.
Long Term vs. Short Term
There are two main types of people in this world, there are those that think only in the moment, and then there are others that often think about the future, sometimes 10 to 20 years in advance. I understand that this explanation is rather simplified, so let’s expand on it a bit.
Those that I would label, “Short-Term Thinkers” have a difficult time delaying gratification. They might be at the mall and see a brand new big screen on sale (or for you ladies, maybe this would be a new outfit). And, because it’s “a deal” they just can’t pass it up, even though they swore they weren’t going to buy anything that day.
Short-Term Thinkers may also have a tough time making goals for the future because they tackle their lives on a day-to-day basis. Even if they do create a future goal, they normally end up making spontaneous decisions that bring them farther away from that goal. It’s not that they don’t want to hit their goal, they are just more easily enticed by the joy of the short-term instead of waiting for that goal that’s way in the distant future.
Those that often think about their future lives and make plans years in advance are known as Long-Term Thinkers. They are very goal oriented and rarely deviate from their long-term plans. If their goal is to save up $100,000 by 2015, every decision in the present will be made with reference to that goal. For example, they might think the candy bar on the rack of the check-out looks tasty, but if they buy it, they know that it will only take them farther away from their overall goal. Therefore, it stays on the rack.
Based on the descriptions above, I’m sure you already know what the secret is. That’s right! Be a long-term thinker.
Make a future goal for yourself and with every action you are faced with, decide if it is taking you farther away from your end goal, or closer to it. With this logic, every decision you make will be simple.
Are you a long-term thinker or a short-term thinker? How are you doing at achieving your future goals?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.