The dire consequences of financial short-sightedness

 

Today I was quoted by Aaron Crowe in his article about serious financial mistakes you should avoid.

This was my contribution to Aaron's article:

Among the worst financial mistakes to make in life, focusing exclusively on the present is the worst, says John Vespasian, author of seven books about rational living.

"If you fail to think long-term, you will render yourself blind to the best opportunities," Vespasian says. "You will waste your money on foolish purchases. You will destroy your motivation to learn complex subjects. And you will surround yourself with the kind of people who are also incapable of thinking long-term."

"People who focus exclusively on the short term tend to make incredibly stupid financial decisions," he says. "In doing so, they subject themselves to high stress and anxiety that could have been easily avoided. A man who lacks a long-term perspective in his life will never be able to save money consistently, nor to spend it wisely."

"Our society places a disproportionate emphasis on purchases that delivery little or zero long-term value. Few people take the trouble to acquire the discipline to think in terms of a lifetime. If you can see yourself living to become 100 years old, and realize what that means in terms of financial foresight, you will avoid foolish financial mistakes."

Text by John Vespasian

Image: Photograph taken by John Vespasian, 2013.

For more information about rational living, I refer you to my books