- Beginning with the end in mind helps build a picture of your future that pulls you in versus pushing you towards it.
- When we look at investment portfolios, we want to look at least five years out to help build that future.
- By beginning with the end in mind, we pull ourselves to where we want to go, through all of the noise and distractions that can confuse us about our investments.
There is a famous book that came out in 1989 called The 7 Habits of Highly Effective People by Stephen Covey. The number two habit in the book is “Begin with the end in mind.” It’s an interesting way of looking at life, one we don’t often think of, but as the name of the book suggests, it’s effective.
When you begin with the end in mind, it helps you build a picture of the future that pulls you to it, rather than you trying to push yourself towards that future. It’s a much easier way to get you there if you’re being pulled or drawn in versus being pushed.
Likewise, when we look at investment portfolios, we want to make sure that whatever we put together, we’re looking out in to the future saying, “What is this going to look like out there?” We look at least five years out so that it supports what you’re doing now. That way, you are building what’s going to be there, but you are doing it in current time so it can fit that future.
What this does for us is make us focus on the long-term. And, as you know, the risk market, stock or bond market, they are longer term investments. It’s not short-term in nature. Something short-term would be cash, and cash we spend and we need for big purchases that come up within the year.
But when we are trying to design something that will fit us for where we are going in the future, beginning with the end in mind, we want to make sure we always have that picture in our brain of what that future looks like. We are then able to properly design something today that fits where we want to go in the future.
It’s a very simple way to pull yourself toward where you want to go and get out of all the noise and distractions that happen in our lives that gets us confused as to what we are doing with our investments. It’s food for thought, and certainly give us a call or contact us if you’d like us to review where you are in your current plan and beginning with that end in mind.
Until next time, enjoy! Gary
Gary Klaben is in our Glenview, IL office and serves our clients who are now located all over the country. Instead of being afraid of change, Gary is always looking at how technology will affect clients and bringing the best of it into the practice. Whether advising his clients, mentoring his team, or coaching entrepreneurs, he is always simplifying complexity and motivating others to take the next action that’s right for them.
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