There are two big challenges when it comes to changing one’s behaviour.
Whether your own or someone else’s.
And these challenges apply to any behaviour change from diet + exercise, to building better relationships, and from personal finance to your career.
They’re the same, wherever you look.
Challenge 1 – Education
The first big challenge is education.
And the challenge here is getting knowledge into people’s heads.
Which is hard because most people have very different views of certain topics, some which they may hold vehemently.
For example, in personal finance, most people are so unaware of any education around it that they have wildly wrong interpretations of what good personal finance looks like.
They probably picked these behaviours up simply by copying their parents or friends and family.
These behaviours may be spending all their paycheck when they get it, getting into credit card debt, or never investing their money.
Whatever the behaviour is, they don’t really know what healthy and good behaviours look like.
So, the first challenge, really, is changing these preconceptions.
Ask anyone who has tried to change someone else’s behaviour; it’s very hard.
Getting someone to realise that having multiple streams of income, spending less than you earn, investing consistently + being careful when it comes to borrowing is the right thing to do with their money, is hard.
And the way to overcome this challenge is, of course, to teach them.
But teaching isn’t just reading a book to someone.
It needs to be engaging and inspirational.
It also helps if you can make someone realise the painful repercussions of their current behaviour, and how it is negatively affecting them.
And then by going on to show how what you’re teaching will change their life for the better.
And if you can explain this pain and give the solution in an engaging and entertaining way then you’re well on your way to overcoming the first challenge.
For example, you will be able to educate someone in personal finance if you first help them understand that spending all their pay check and then going into credit card debt isn’t going to help them be happy or get what they want in life: respect, admiration, love, friendships.
And you can do that by telling stories, explaining the theory, giving personal experience, but most importantly, showing how their current behaviour is negatively affecting them.
People always act to avoid pain.
So then, this first challenge is big, but not insurmountable.
You can educate people.
Challenge 2 – Sticking To What You’ve Learned
The second challenge, though, is trickier.
And the second challenge is ensuring that people stick to the lessons they have been taught.
It’s all well and good, in personal finance, telling people to invest for the long run.
And to spend time in the market.
And to not spend more than they earn.
And to be patient for 20 years with their investments.
And to keep investing even during recessions.
You can teach people these things.
And they can understand.
And they can change their view.
And be completely convinced you are right.
But then they actually have to do those things.
They actually have to leave their investment pot alone for 20 years.
And that’s the challenge.
In theory, all of this is great.
In theory, yes, I should exercise more and eat more healthy, whole foods.
In theory, I should confront difficult conversations as and when they arise and not suppress negative emotions.
In theory, I should be greedy in the stock market when others are fearful.
But theory often flies out the window when real life stuff happens.
For example, take investing and personal finance again.
I know I should invest in the stock market and leave it alone for 20+ years no matter what.
Only by doing this will I get exponential growth and the sort of returns I want to give me the freedom I want in life.
I knew this in 2019.
But then the pandemic hit in 2020, and life looked like it was never going to be the same again.
The stock market plummeted and everyone started selling their shares.
Because why wouldn’t they?
The world was genuinely falling apart.
People were dying.
There were no vaccines.
There was no light at the end of the tunnel.
Business success? Dream on.
Sell the shares.
That’s what everyone did! It made sense!
But theory says i should wait and, not only that, but keep putting my money into companies that might not exist in a year due to the pandemic.
And yes, in hindsight, we sit here now and say it was no different. You should have kept investing.
But in the moment, that would feel like the wrong thing to do.
And this is the cost of applying education; this is the pain.
Life is hard and making these decisions is hard.
Which encapsulates what is so difficult about education and changing people’s behaviour.
When push comes to shove and you have to apply your theory, it can be very very difficult.
Solutions
So, what’s the solution?
You might be disappointed with my answer here.
But I think the solution is to educate yourself in as many fields as you can.
Learn to love learning.
And then, when you need to make big decisions, make educated decisions based off your learning.
Make a call.
And learn to live with the consequences..
Learn, read and acquire knowledge.
Most wisdom you will ever need in life is free on the internet.
Check out the reading list on FTG’s website for tips and good authors if you want to read books. Alternatively, watch YouTube videos about them.
Surmount the first challenge, for it is the easiest.
And then, when you need to apply your learnings, do the best you can, use your judgment.
And if it goes well, congratulations.
If it doesn’t, oh well.
What can you do? That’s life.
Keep in mind what will make you happy in the long run; family, relationships, and your character.
A large part of life is learning to live with your decisions, and having the conviction that you made the best choice you could have with the information you had at the time.
No point stressing about it, life is too short for that.
As Keynes said: ‘in the long run, we’re all dead’.
Have a good week everyone.
Max
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