In my book, I discuss three principles that nearly everyone I've known who has successfully built wealth(Key to Building Wealth) follows: have a plan, be diversified, and seek counsel. Of these, "seeking counsel" tends to be the most challenging because it's more subjective than the others. Reflecting on this, I realize that a better term might be "embracing curiosity."
Here's why. Highly driven, goal-oriented individuals often see asking for help as a sign of weakness. They might think, "Why ask when I can research it myself or find the answer online?" I understand that mindset. However, embracing curiosity isn't about showing weakness; it's about seeking a deeper understanding. In the book, I described two types of counsel: formal and informal. Many successful individuals may not even realize that when they ask for information, they're engaging in what I called "seeking counsel"—they're simply being curious.
The wealthiest people I know don't think of it as "seeking advice"; they think of it as "staying curious." A prime example of this mindset is Warren Buffett, one of the most successful investors of our time. Buffett is known for his voracious reading habits and his eagerness to learn from others. He spends hours each day reading and is constantly asking questions, not necessarily to act on every piece of information but to broaden his understanding of the world.
For instance, Buffett once said that he reads around 500 pages a day because, as he puts it, "That's how knowledge works. It builds up, like compound interest." His curiosity doesn't stem from an immediate need to act but from a desire to continuously learn and grow.
Another example is when Buffett and his longtime business partner, Charlie Munger, decided to invest in Chinese electric car company BYD. Before making the investment, they didn't just rely on financial reports; they visited the company, talked to employees at all levels, and sought to understand the business from the ground up. Their curiosity led them to insights that weren't apparent from the numbers alone.
This approach highlights a critical point: being curious, especially with those who have practical experience, can lead to more effective decisions. Wealthy individuals often ask questions out of pure curiosity, without feeling obligated to act on the information they receive immediately.
This is a significant difference from those who feel the need to do something with every piece of information they gather. The latter group might feel pressure to accept, reject, or save the information for later use. In contrast, those who embrace curiosity focus on gathering insights without the immediate pressure to make decisions. This liberating approach allows them to explore ideas freely and make more thoughtful, informed choices when the time is right.
So, how does curiosity directly impact financial decision-making? By continuously asking questions and seeking new perspectives, you open yourself up to opportunities you might have otherwise missed. Curiosity leads to a broader understanding of markets, industries, and innovations, which can inform better investment strategies and business decisions.
Actionable Steps to Embrace Curiosity in Your Financial Journey:
Ask Open-Ended Questions: When engaging with others, ask questions that encourage detailed responses. This can lead to deeper insights.
Diversify Your Information Sources: Don't rely solely on familiar channels. Explore books, podcasts, seminars, and conversations with people outside your usual circle.
Cultivate a Learning Habit: Dedicate time each day or week to learning something new, whether it's reading industry reports or attending workshops.
Listen Actively: Focus on truly understanding others' perspectives without the immediate need to respond or act.
Reflect Before Acting: Allow yourself time to process new information without pressure to make instant decisions.
In conclusion, I've come to see that "seeking counsel" is more accurately described as "embracing curiosity." Wealthy individuals ask questions out of pure curiosity, without any immediate need to act on the information they receive. This curiosity allows them to explore ideas freely and make more thoughtful decisions. By adopting this mindset, you too can unlock new opportunities and enhance your financial decision-making.
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DISCLOSURE - All written content on this article is for information purposes only. We utilized ChatGPT and other sources for this article. Opinions expressed herein are solely those of Core Wealth Consultants. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. Core Wealth Consultants, LLC a Registered Investment Advisor in the States of Florida, Indiana and Michigan. You should always consult an attorney or tax professional regarding your specific legal or tax situation. Diversification and asset allocation does not assure or guarantee better performance and cannot eliminate the risk of investment loss.
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