The combination of long-term thinking and immediate actions will make future goals possible.
When it comes to planning in life, there are two perspectives you can take: You can adopt short-term thinking and concentrate on maximizing pleasure in the here and now, or you can think and plan long-term. Long-term thinking centers on being a step ahead and considering the consequences of your actions – and then the consequences of those consequences, and so on.
So which is better? Well, an overwhelming majority of people who are happy and successful also focus on long-term thinking.
In 1970, Harvard professor Edward Banfield, looked at people from different socioeconomic backgrounds and observed that the people who earned more money were the ones who thought ahead – often years or decades ahead. These are society’s smartest people. Yet their smartness didn’t come from having sky-high IQs; it came from their perspective, most notably their ability to think about how each of their actions would get them closer to their ultimate goals.
And this is just as important today. According to Forbes magazine, there were 290 new billionaires in 2015, 66 percent of whom were self-made and had started off with next to nothing. To generate this wealth from a standing start, long-term planning is key.
To join the ranks of these bright individuals, you must think about where you’d like to be in five years and then figure out what you have to do now to get there. This involves taking stock of your work and personal life, as well as your health and financial independence, and then making important decisions based on this information.
But it’s always worth remembering: Just formulating a great plan is not enough; you also need to act on it.
For example, are you thinking ahead about enjoying a comfortable retirement? A huge number of Americans – 70 percent, to be exact – live from paycheck to paycheck. They don’t think about saving or investing for the future; they prefer to think short-term, focusing on which car or gadget they can buy right now. When these people reach retirement age, they’re in for quite a shock.
If you want to avoid this fate, you need an action plan. Set up a savings account immediately and, every month, deposit 10 to 15 percent of your income. Through the miracle of compound interest, relatively tiny investments made at a young age – even as little as $100 a month – can grow into massive amounts by the time you’ve retired. Every moment you delay or focus on short-term gratification will cost you in your old age.
To make better decisions, slow down your thinking.
Human thoughts are generally a bit like the bubbles in a glass of champagne – each one vanishes soon after it forms, along with countless others. Though there’s always plenty of mental sparkle and fizz, there is a definite lack of real substance.
Unfortunately, many of us let ourselves be dominated by these speeding, transitory thought bubbles. Rather than using our brain to think logically and sagely, we allow emotional, reactive thoughts to determine our actions. For example, when we get a ping on our phone, our brain compels us to instantly drop the task in hand and have a look. Or, when someone riles us up, our immediate, angry thoughts often lead us to lash out.
But it doesn’t have to be this way. We can use our brain more effectively.
According to Nobel Prize-winning psychologist Daniel Kahneman, there are two types of thought processes. There is the impulsive type of thinking that we just described, and then there is the slower, more rational process of thinking where we weigh all the options and make considered decisions. When planning important long-term goals, utilizing this slower method of thinking will lead to better decisions.
The good news is that the slower method is pretty easy to engage; the longer you take to make a decision, the more chance you give your slow-thinking brain to come up with the best answer.
Here are a few simple tricks you can use to slow down your thinking.
One great tactic is to take 72 hours before making any important decision. This will give you ample time to carefully mull over the various options.
Nothing gets the slow brain in gear like a period of solitude. Spending 30 minutes to an hour every day in a quiet, secluded spot will give your mind the time it needs to think. Shut off all distractions, such as phones and music, and let your mind flow like a river. Left alone to contemplate, it won’t be long before your mind starts generating great ideas and solutions.
Finally, go through each stage of the author’s GOSPA model to think carefully when contemplating long-term strategy.
Goals: What results do you ultimately want to achieve over a specific long-term period. For example, what growth target do you want to aim for over the next five years?
Objectives: The smaller targets that will get you closer to your main goals. For example, what level of growth should you be striving for this year?
Strategies: How will you achieve your objectives? For example, what marketing strategy will generate the required growth?
Priorities: Identify the most effective actions that will make your strategy a success.
Actions: The everyday work that will ultimately get you to your goals.
Going through the GOSPA model, stage by stage, will allow your slow-thinking brain the space to reach the best decisions. Next time you need to think of long-term strategy, be sure to use it.
