Do you think that small habits can lead to big changes? I believe so, and in this article, we’ll explore how.
After exploring three scenarios to improve your life, it’s time to return to the general rules. I would like to share some of my small habits with you, hoping they might inspire you and bring you the same benefits I have received.
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Personally, I enriched my education by participating in an Executive MBA and continuing to supplement it with various online courses. There are excellent platforms at affordable costs, but they require commitment and attention.
If you want to understand how financial markets work, I highly recommend the Yale University course by Prof. Robert Shiller, Nobel Laureate in Economics in 2013, titled “Financial Markets”, available on Coursera.
Allow me a brief introduction: Robert Shiller is an American economist known for his pioneering work in finance and behavioral economics. He is a professor of Economics at Yale University. He is the author of several best-selling books, including “Irrational Exuberance“, and the famous CAPE (Cyclically Adjusted Price to Earnings) indicator. I took his course in 2019 with great interest and found it extremely instructive.
If you don’t have much time but want a general idea of how the economy works, there are videos by Ray Dalio on YouTube, particularly I recommend “How the Economic Machine Works”. Ray Dalio is an American entrepreneur and hedge fund manager, known for being the founder and chairman of Bridgewater Associates, one of the largest hedge funds in the world.
His approach to investing is heavily based on macroeconomic analysis and risk management principles. He is the author of several best-selling books, including “Principles: Life and Work”, where he outlines the fundamental principles that guide his life and work.
If you have more time and want to delve into the topic of business valuations, understand what a DCF is, a P/E multiple, and most of the technical terms used even in economic newspapers, you should check out the courses by Prof. Aswath Damodaran.
Much material is available for free on YouTube. The professor is so authoritative that his data is used by top professionals in the investment sector. Aswath Damodaran is a finance professor at the Stern School of Business at New York University. He is an internationally recognized expert in business valuation and investment decisions. Damodaran is the author of numerous books and academic articles on asset valuation, investment strategies, and corporate finance.
Reading: The Best of Small Habits
It might seem strange, but you should know that successful people really do read a lot. I recommend reading books and magazines and dedicating at least a couple of hours a day, or part of your weekend, to this activity. The secret is to make reading one of your small habits, and you’re set.
A habit is a routine or behavior that is performed regularly and, in many cases, automatically, without much effort
I’ve heard that it takes at least 65 days to establish a habit. Just for your information, during my sabbatical, I managed to read over a hundred books in a year. I hope you will find some good reading recommendations on the blog.
According to research by Thomas Corley, author of the book “Rich Habits”, who studied the habits of millionaires, 88% of wealthy people read at least 30 minutes a day for educational or career reasons, compared to 2% of the less affluent. In general, the poor tend to prefer less demanding forms of entertainment than reading. Successful people are avid readers. Bill Gates reads at least 50 books a year and recommends many books to read each year.
Warren Buffett, perhaps the greatest investor of all time, has often stated that he spends most of his days reading. Legend even has it that 80% of his time is devoted to this activity.
Charlie Munger writes in his Almanac: “In my entire life, I haven’t met wise people (in a broad subject area) who didn’t read all the time, none, zero. You would be surprised at how much Warren Buffett reads and how much I read. My kids laugh at me. They think I’m a book with a couple of legs sticking out.”
Regardless of your age, start finding your path by continuously strengthening and expanding your skills until they become small habits.
Nowadays, with the help of technology, it is possible to do this economically and with maximum flexibility. We are truly fortunate to be able to listen to the lectures of a Nobel Prize-winning economist practically for free and comfortably from home, or to have the possibility to read on a device all the books we desire. In my opinion, this aspect of technology is extraordinary and can make a difference. Therefore, try to stay curious and never stop exploring.
Your income can only grow if you grow too!
Remember that excellent education significantly increases the likelihood of finding a good job, and a good job exponentially increases the chances of achieving financial independence.
On avance!
