And here we are in the middle of the 1st month into 2015. According to Statisticbrain.com, at this point in the month approximately 29% of people have already given up on their New Year’s Resolutions. At least they tried, right?
It is a very interesting time of the year for most people, as an unofficial reset button is pressed at 00:00 on 1 January. Feelings related to ‘a new page’, and ‘a clean slate’ are in abundance. I’m going to exercise more. I’m going to start that diet. I’m going to focus on my work-life balance. I’m going to be a better person. The list goes on and on.
In the financial world, things are no different. As in life, where a calendar year is about as arbitrary as an ashtray on a motorcycle, the financial boffins spend a disproportionate amount of time to disseminate exactly what happened between 1 January 2014 and 31 December 2014 in different markets, stocks, currencies and commodities across the globe.
If we’re honest, no one really cares what the JSE did from 8 January 2014 to 8 January 2015. (8.53% up for those who care). We only focus on what the JSE did in the calendar year 2014. (7.60% up for those who don’t already know). Why is that?
It might have something to do with the fact that our minds are always playing a relative game, judged by clearly defined points of reference. It is much easier to ask someone how their 2014 went than to say: “Hey. How was your 13 April 2013 to 13 April 2014?”
So when we take stock of how things went in the past and start to plan for how things should go into the future, the same points of reference apply. As you find yourself at the start of such a point, you feel an inflated sense of aspiration to achieve any goal which you might set for yourself.
I’m going to be productive today.
I will exercise 4 times this week.
I won’t eat chocolates this month.
I will eat healthy this year.
The problem with this mind-set is that we postpone the start of any new challenge or goal, until the start of the next point of reference. Only when the reset button has been pressed can we start with anything new. And that is why a diet always starts on a Monday.
We would thus like to challenge you in 2015 and beyond, to act on challenges as soon as the urge strikes. Feel like quitting smoking? Put down that cigarette. Feel like learning a new language? Google an online course now. Feel like sorting out your financial planning? Get in touch!
