practice | The Caleb Barney Collection

Money principle #1

Pay yourself first…make sure that you have automatic payments set up to invest in yourself. Ideally, you want this set up going to a low fee index fund. Time and compound interest will be your best friends. The earlier you can start regularly contributing to this fund, the better off you’ll be. The best part about having it automatically set up is that you don’t have to remember to keep investing every month. If you want to invest more, you can. But here, it’s basically like a subscription model (set it and forget it).

If you’re saving up for a specific purchase like a vacation, a new car, a house, etc, set up a separate account and automatically transfer money to that account. Have it set up for every paycheck. If you don’t “see the money” in your regular checking account then you’ll be far less likely to spend it. This will help you actually hit your saving goals and then you won’t have to use credit to purchase your consumer goods.

It’s about how you do things

Practice vs deliberate practice. Working out vs training. Going through the motions vs living intentionally.

You can become moderately good or even above average by consistently working on something. But if you’re just going through the motions and not deliberately following a plan to improve, you won’t reach your full potential and your progress will be much slower. Do you have a specific plan or are you just doing what you feel like doing that day?

Improving is partly just about “doing something” repeatedly as it relates to your goals. But that’s only a small part of the solution. The bigger part is practicing perfection. We will never achieve perfection, but the more we aim towards it, the closer we will get in chasing excellence.

Praise the effort

We tend to simplify things in our heads, wanting to take whatever is the easiest route. We do this in many things, including looking at results. But what should be focused on instead is the effort the individual is giving to get the results.

There are two problems when only focusing on the end result…

First, if we only focus on the end result, maybe we aren’t challenging ourselves enough. For example, I should almost always win when facing an elementary student in basketball – and I’m not even good at basketball. But when you lower your standards just so you can win, it defeats the purpose of playing the game. At that point, why measure anything at all?

Second, when we focus on results only, we remove the element of luck from our environment. Annie Duke talks about this in her book Thinking in Bets. I can play a hand of poker perfectly according to the probability of what gives me the best chance at success and still lose the hand. Or, vice versa, I can play a hand incorrectly and still win. But if we’re only looking at the result, that may alter our way of thinking and cause us to play according to our emotions instead of what is mathematically the most likely way to win. It’s important to remember that we can only control our actions, not the actions of others, our environment, or “luck.”

So instead of focusing on results, the real question should be: “What did you do to maximize your potential?” It’s ok to ask our children if they won the game, got an A on the test, etc., but make sure we don’t praise the result. We need to focus all of our attention/praise on their efforts. What work did they put in to achieve those results? Did they try their best? (And remember, more is not always better. So if they were “studying” all night before a test and didn’t do well, maybe it would be better to have a shorter timeframe to study intensely and then get a good night of sleep.)

The key to greatness

To be great, you have to be consistent. You have to be disciplined. You may have natural talent/ability, but without nurturing it and growing it through consistent effort, you will never achieve true greatness.

Do you think LeBron James or Michael Jordan were born with gifts that you and I don’t have? Yes. That’s how the world works. Everyone is different. But they also worked tirelessly for years on end, spent millions of dollars investing in their bodies to help strengthen them, honed their craft with hours in the gym, etc. They had natural ability, but so do a lot of other guys in the NBA. It was their consistent, focused effort over many years that helped them become the greatest of all time.

While it is easy to think of sports as the best analogy here, it applies to everything we do in life. Want to be better at your job? What actions are you taking daily to train to become the best? Do you role play scenarios with other team members? Do you take continuing education classes? Do you read about specific subjects to help you or watch “how to” videos?

You don’t improve the most by going to a weeklong seminar once per year and then not doing anything else until next year’s seminar. You improve the most by taking small, focused actions every single day, always building upon the previous day.

What actions are you willing to take to achieve greatness – not today, and not tomorrow, but five, ten, or twenty years from now? Are you able to look at the big picture and base your decisions on that instead of what feels good today? Do you have the discipline to repeat the monotonous actions (slightly/slowly improving over time)? If you want to be mediocre, that’s fine. You can live a good life coasting through it. But if you want to achieve greatness, you have to endure many unheroic days to reach some heroic decades in the future…

Sharpening the saw

Just like the analogy of “sharpening the saw,” you need to take time to sharpen your body and mind. Take the time to prepare for the future. When you a sharpening the blade of a saw, you may feel unproductive because you’re not actually “using” the saw to cut something down. But, in reality, you’re being extremely productive. Because of you being proactive in sharpening the saw, it ensures that when you do go to use it, it will be more efficient and cut more effectively with less energy being expended.

This is why it is important to work on “sharpening” your body and your mind. Eating healthy foods, working out, and stretching (which I enjoy the least, but need the most) are a few ways to sharpen your body. Reading, writing, drawing, painting, doing puzzles, building things, and meditating are ways you can sharpen your mind.

By working on yourself today, reducing your weaknesses or improving your strengths, you prepare yourself for the work of tomorrow to be easier. If your training is harder than the actual event, the event will seem easy to you and you’ll be able to perform better than the competition.