This will be a core concept training by The Guardian Academy (TGA) utilizing the book by Nic Peterson, Bumpers, which will be linked in the reference section. We will set the framework on how to apply Bumpers to investing, building a business, or whatever you are doing to fund your Core Capital and your definition of wealth.
We fail to appreciate when bad things don’t happen.
We spend so much time digging ourselves out of holes because we failed to appreciate not falling into one in the first place.
Another way to think about this is: “Before pushing harder on the gas, take your foot off the brake.”
Where Are The Brakes?
When it comes to investing or building anything involving a financial aspect, these are the “brakes”:
- Working With Intractable Problems (problems that can’t be solved for).
What do you want? “I want more…”
Well, more isn’t something that can be solved for. Everything in life is a multi-variable equation.
Think of this example: X * Y= 20, what is X? Well there’s multiple answers for X and every time X changes, Y also changes because nothing was defined. These are intractable problems, problems with no right answer and can’t be solved for.
So what are you solving for?
2. Strategies Diametrically Opposed To Espoused Beliefs (stop watering the weeds).
“I want to spend more time with the kids.”
Except the decisions that you make cause you to ultimately spend less time with the kids. You can’t win a race against yourself. To overcome this brake you need to align your beliefs with what you say that you want. Sometimes this might mean you need to be more honest with what you say that you want or you need to change your behavior.
3. Maximizing Before Optimizing (resource allocation).
This would mean trying to fund too many things at once. If you took all the effort/resources and funded one thing and accomplished it (which would actually move the needle for you) it would then free up the resources to do the next important thing.
4. Best Case Vs Base Case (what can possibly be achieved vs. what is probable to maintain).
The best case is assuming you will play at your best and achieve your best every single time.
Time optimization is a good example of this. You fill up your calendar so that you can look and feel productive, but if anything unexpected happens to you this throws off your entire day and rhythm. To overcome this brake you would instead work from a base case (the most probable thing that we can sustain to build a rolling average over time).
Your maximum achievability is not your maximum maintainability.
This article was just the framework to open some loops for you and allow you to reflect on your own life. These are the four main issues that will prevent someone from getting what they want out of life and we will go more in depth on each of these topics in the next four articles.
6WU- Wisdom Comes From Multiple Perspectives
Share your takeaways in six words and then read through what others have taken away as well to learn from their wisdom and perspective.
- Bumpers– Check out the book where this article got the inspiration from.
Up Next- TGA Core Concepts
Solvable Problem™– https://guardianacademy.io/tga-core-concepts-solvable-problem-1/