Overestimating 5 Months and Underestimating 5 Years
In episode 107, “Win The Day”, of The MFCEO Podcast, host Andy Frisella says, “Most people underestimate what they are capable of achieving in five years, and overestimate what they are capable of achieving in five months.”
When I entered the finance industry, I started in a call center as a customer service representative receiving phone calls, listening to customer complaints and facilitating client resolution. The role dealt very little with actual investing, and I quickly convinced myself I was “above” this job. Consumed by my belief that I was better than my current position, coupled with my eagerness to work closely with investments, I would complain every day and I quickly lost interest in the role.
My wife kicked me into shape and posed the question of, “what exactly do you want to do?”
“I want to be the next Warren Buffett.” Funny to think how naive I was.
“Well, besides complaining every day, what do you need to do to get there?” she prompted.
As I reviewed the names of money managers, I noticed a lot of them had “CFA” at the end. The CFA designation is considered the most difficult designation to achieve in finance, and my first feelings of doubt crept in. Perpetually supportive, my wife convinced me I needed to pursue the credential.
The curriculum provides a deep dive into investment analysis and requires taking three comprehensive tests that are available once a year. The three year time commitment required to earn the designation was one of the greatest benefits of its pursuit. You have to look ahead and envision what you will be doing with the knowledge you obtain from the years of studying for the designation.
I started asking myself, what does the job you want in five years require? What skill sets, expertise, and credentials do you need? What can you be doing now to prepare? It was at this point that my mindset shifted and my career truly began to take shape.
When I thought about the soft skills required to become a successful portfolio manager, talking confidently, asking strong questions, and problem solving, I began to view the customer service job in a completely different light. I no longer saw this as a job I was “above” doing. Rather, the job became a training ground in which I could develop skills that would benefit me for the main event. I started taking pride in my work and focusing on the lessons I was taking away from each customer interaction.
This shift in mindset launched my career and served as a humbling life lesson that I carry with me. My performance improved dramatically and my bosses started noticing my drive and ambition. The promotions quickly followed.
Success comes when you marry your daily actions with your long-term goals. This is as true with our careers as it is our finances.
Ask yourself, “Long-term, where do I want my finances to be? What do I want my life to look like?”
Do you want to be a multi-millionaire? What does a multi-millionaire do with their money and how did they get there? Are you taking those actions?
I have heard old and young investors alike say, when I have X (usually a fairly large number) amount of money, I will change and get serious. But it is not until you get serious and put the right processes in place that you will actually have X amount of money. This is like my entitled mindset in my first role, thinking that I would just receive the promotion for showing up. This is the training ground for your main event!
The financial habits you establish today will compound tomorrow. Think of what you want your life to look like and take daily action to reach those goals. It may not happen in five months, but if you are consistent, you’ll be surprised at the progress in five years.
If you don’t know where to start, or need someone to hold you accountable, we’d love to help. Driven Wealth Management is coming up on our fifth full month in business. Thank you for coming on this journey. We are overwhelmingly grateful for the support and trust you have put in us so far. As we look ahead five years, we hope to prove Andy right.