Put simply, the timeframe in which you make your decisions determines your logic. Things that make sense in the long-term might seem crazy to people who only think of the short-term, and vice-versa. Therefore having a long-term vision is critical to keep in mind as you are faced with making decisions.
Elon Musk, Jeff Bezos, Mark Zuckerberg and other extremely successful entrepreneurs know this, and they make decisions with their long-term visions in mind. This approach has led to their tremendous success, while other business leaders who make decisions with improving quarterly earning as their primary goal have seen sub-par performance (or at least are unable to match this level of success).
For example, in 2006 Elon Musk created and shared his own version of a long-term vision. In 10 years he would: 1) create a low-volume car that, by necessity, would be expensive, 2) use that money to develop a medium-volume car at a lower price, 3) use that money to create an affordable high-volume car and 4) provide solar power. On July 20, 2016 Elon announced all four goals had been achieved. Imagine if instead of this long-term vision he had focused on quarterly or annual earnings and profits; there’s no chance he would have made the difficult choices and investments necessary to help realize this vision.
In regards to personal planning, creating a long-term vision for your life is the first step in enabling you to think long-term. Every day you will be faced with choices of varying degrees, and the choices you make will benefit you in the short-run, long-run or anywhere in between. Hence, prioritizing your goals and your vision is the next step. You need to truly clarify, quantify and prioritize your vision for the future, as well as all your intermediate goals. With this in place, you can then make decisions with that vision in mind and pursue its realization, just as these legendary entrepreneurs have done with their businesses. (For related reading, see: Setting Financial Goals for Your Future.)
How To Create Your Long-Term Vision
To create this long-term vision, ask yourself these important questions:
- Three years from today, if you were to look back over those three years, what should have happened during that period both personally and professionally for you to feel happy about your progress? Prioritize this.
- How about five years from now? Ten years? Twenty years?
- Describe in detail the most fulfilling vision of life you can imagine (including the financial, time management and environmental attributes of that life) both now and in the future. Moving? Vacations? Gifting? Kids/grandkids? Time working? New Career? Start a business? Sell a business? Prioritize this. (For related reading, see: Start Your Own Small Business.)
- If you had complete financial security, how would you spend your time?
- What's important about money to you? Goals? Values?
Then with this written down, really focus on quantifying (in dollars and time) and prioritizing these goals and values. Once you have them prioritized, begin to develop a plan and decision-making process in which you incorporate these goals and values into every decision (including how you spend your money and your time). This may be difficult at first, but once it becomes habit it will be easy and natural. (For related reading, see: How to Dream up the Right Retirement Goals.)
Ross Atefi is a registered representative of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors, a broker-dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln Marketing and Insurance Agency, LLC and Lincoln Associates Insurance Agency, Inc. and other fine companies. Duran Wealth Management is not an affiliate of Lincoln Financial Advisors Corp
Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances. CRN1736435-031517
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