By Sam Ovens
My Notes from YouTube Video :
Short-term Thinking is all about Instant gratification;
Pleasure Now ; Pain Later;
Short-term thinking: Fitness Example :
Diet : Pizza : Enjoy Today ; Pay Tomorrow (in Poor Health)
Exercise : Lay on Couch Today ; Pay Tomorrow (Body Weight)
Short-term thinking : Purchasing example:
You go to Amazon.com and see a great deal for 42-in Curved panel TV
You do not have the cash but are driven by Impulse to buying 42-in. TV on Credit card;
First Order Effect of above : Credit card debt
Second Order Effect: Wasting Time on TV
Third Order Effect : Pattern of Lazy behavior
Most people do not understand Long-term Thinking and 2nd Order consequences!
- First order Thinking : Action => Reaction !
- Second Order Thinking : Action => Reaction => Deliberation of Feedback=> Action
Long-term thinking is Pain Today => Pleasure in Future!
Example : Buying Books / Online Course : Pain Today as you have to spend both Time and Money today . but if you cultivate the habit of reading over and over, you become smart over the average person over Long-term !
Great Businesses are about Long-term Thinking!
Wealth comes from Delayed gratification - playing the waiting game!
Poor businesses focus on Quarter to Quarter ! Short-term Thinking !
Great Businesses focus on Products and Services! Long-term Thinking!
So the key behavior for improving the chances of Success is :
To understand develop : habit of Delayed Gratification : Pain Now , Pleasure Later :
Delayed Gratification :
Pain Now pleasure Later
Give now , Take Later
Effort Now, Effects Later
if you do so with focus , the compounding effect will reap you the awards
Power of Compounding
In the Book, "Your Money or Your Life" there is an equation:
Work = Play + Pay;
then, if you want work to look like play, Eliminate the concept of Pay , at least temporirly,
through delayed gratification ;
Think of a delayed Paycheck ;
If you are able to tune to that, you are Long-term thinker!