Here’s Why a Long-Term Mindset Can Help You Live Wealthier and Healthier (and How To Build One)
How you answer these five questions might tell you a lot about your financial future
Most personal finance advice misses the crucial aspect of your mindset.
As an economist, I used to roll my eyes at the idea of cultivating a “money mindset” — whatever the hell that means. Money is about numbers, plain and simple. Make more than you spend, invest the rest in a diversified portfolio for the long run, and you’ll succeed.
I was trained to analyze data in spreadsheets, and when you bring a spreadsheet mentality to personal finance, it becomes exceedingly simple.
But financial decisions are not made by formulas in a spreadsheet — people make them. When people make decisions, you need to start thinking about what influences a person’s decision-making.
To be great with money, you need two things
- The ability to make good decisions
- Consistency in your decision-making over very long stretches of time
To accomplish these two things, you need to develop a long-term mindset.
