When it comes to investing, there is nothing as important as learning.
Sometimes what you learn is straightforward and simple – and this will surely result in you being a good investor.
But, if you want to be a great investor, you have to absorb knowledge from various sources – and when it’s solid information, you use it to help yourself attain the right mindset for investing.
We found Tiny Habits by BJ Fogg to be one such source of knowledge. BJ Fogg is a writer and behavior scientist. His career in innovation and teaching spans over two decades, and his book Tiny Habits brings focus to the power of using simple, consistent habits to create long-lasting results. The author has a theory that there are really only 3 things that are likely to cause a lasting change in your behavior –
Now, #1 is rare. Epiphanies aren’t easy to stumble upon! It’s like finding a needle in a haystack. Also – you have no control over when a bulb is going to go on in your head. #2 – is doable, but not always feasible. #3, however, is the only thing that you have complete control over – and it’s feasible because it only requires consistency of effort toward small, manageable steps.
The Fogg Behavior Model
Now, you must be wondering – “But why do tiny habits work?”
Fogg shares a model to illustrate why small, daily, and diligent habits work wonders when trying to make something a part of your routine.
Fogg states that –
B = MAP
INSERT IMAGE HERE
Here, B is Behaviour, and M (Motivation), A (Ability), and P (Prompts) are the three elements that are absolutely necessary to make Behaviour occur, i.e., trigger Behavioral change.
Elements of the Fogg Behavior Model
Let’s take a closer look at the 3 elements of this model –
The Fogg Behavior Model perfectly illustrates the various elements of habit-building (read: changing a behavior) and shows just how much we need to worry about each element.
There is a lot that young investors can learn in this book, but if we were to condense it into one key point – it would be to apply this rule of consistency through simple habits to investing as well. Set a goal, and work backward from there. Financial milestones don’t have to come with the burden of already having large volumes of funds in place. Break it down into spare change, invest it today rather than tomorrow, and give it time to grow. (Pro Tip: Time is the key to unlocking the full power of tiny habits!)
With all that information – we’ve barely scratched the surface of this incredible book! It’s easy to read and offers example-centric details on how tiny habits can be cultivated. If you get a chance – pick up a copy! If you don’t have time – pick up a copy anyway, and start reading for just 10 minutes a day!