The Future Value Equation

Hi, 

This week, we are talking about this quote: 

I am moderately interested in money markets. I like talking about interest rates and how S&P 500 is performing, but as I continue to think about this quote there is a major unlock for our daily lives. 

Let’s dive into it. 

The power of this frame is that it pairs qualitative and quantitative in one place to give a clear picture of how we perceive the opportunities in a specific sector. When it comes to money markets the goal is to create clear and objective outcomes from your investing activities. During the forecasting process something interesting happens, human emotion comes into play and causes the future we plan to shift off course. 

This equation explains that phenomenon. 

Recently, I have been thinking a lot about my goals. What do I want to achieve, how am I going to achieve it, and why does this achievement matter to me?

In this current reality where there are gurus, coaches, and honestly grifters making noise around every type of goal, there is more information than ever about goal achievement, but yet, I don’t think it is actually any easier to actually achieve any specific goals. 

We are experiencing the opposite of the tool box fallacy. The tool box fallacy is the idea that people are willing to wait until they believe they have all the requisite tools to do the task in front of them. 

There are no longer any excuses, there are hundreds of hours of YouTube Content, Blog posts, podcasts, you name it. All of the information you need you have if you look for it. 

So why are goals not easier to achieve? 

I have two thoughts: 

Real success takes longer to achieve than people are willing to commit.

The story we have about ourselves changes our perspective about our ability to accomplish our goals. 

Let’s focus on the latter. 

If we use our handy new equation we get this: 

Why are the first 10 pounds of weight loss so exciting? Because you can see really meaningful change in your appearance, it can feel like every day you wake up you can see the difference you are seeking to achieve. 

Or in other words, the story we are telling ourselves about the efficacy of our tasks is being positively reinforced. The progress is not just being measured in the numbers on a scale, they are being measured in the perception in the mirror. 

So if we are constantly judging the ability for the tasks we are doing to achieve progress, if you are unaware of this silent equation taking place in the back of your mind, you will either have to use an outsized amount of energy to continue to do the tasks, or you will quit altogether. 

When we see the full scope, we can better troubleshoot our process, and figure out what it actually is that is keeping us from accomplishing our goals. 

Is it that you are doing the wrong tasks or wrong volume, or that your perception of how long it should take to get to where you want to be? 

Diagnosing where the problem truly lies allows you to make changes with a scalpel rather than a jack hammer. 

Happy Week, 

Kyle