Welcome to The Investor’s Mindset, a free monthly newsletter where smart investors get smarter. Welcome to the thousands that joined us since our last send.
Last month, we talked about systems and why they make your life (and finances) easier and more efficient.
This month, we’re exploring intentions, about which three things are true:
- Intentions aren’t goals
- Your intentions create your reality
- Intentions must be supported
#1: Intentions aren’t goals
But while a goal is highly specific and measurable, an intention leaves room for interpretation.
And there are no limits. Intentions are yours to build.
#2: Your intentions create your reality
We won’t deny it: there are many factors out of your control that impact your finances. For example, in investing alone, we see market movements, corporate actions, and dozens of other changes impact our holdings.
So, an intention isn’t hoping that the market won’t move a certain way. That’s a wish or a prediction. An intention is a clear statement that emphasizes and clarifies your personal direction – in finance or otherwise.
If you have a goal of saving a specific amount toward retirement, perhaps your intention looks something like this:
I intend to live a lifestyle that allows for financial freedom.
Your goal may further define financial freedom as the ability to travel during retirement or buy a beach house. But your intention reminds you that your daily decisions track to that lifestyle – and your investing, borrowing, and spending habits will naturally align.
Remember: intentions can’t time the market, but that doesn’t mean your reality is up to chance.
#3: Intentions must be supported
When you set an intention, you’re putting yourself on an effective path to become who you want to be.
But a few I-statements aren’t enough.
If your intentions aren’t backed by a system, you risk chaotic decision making – even if you’re doing your research.
Key insights from our blog
How smart investors stay focused on their financial intentions
Intentions work hand in hand with systems to make your financial life easier. Need more on systems? Last month’s newsletter has that topic covered.
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Just for fun
What day would yesterday be if Thursday was four days before the day after tomorrow?
Scroll down for the answer.
Until next time
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We’ll be back in 2021 with even more.
The M1 Team
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