Have you changed your mind about your money or your life principles? Ever or recently? Hopefully, you have because it will indicate that you are open to learning. A learning mindset is essential for building wealth and for a meaningful life.
There are several good reasons for changing your mind: new data or research emerges; tax laws change or your circumstances change.
I used to believe that concentrated share portfolios, especially high dividend-yielding ones, were the best investment vehicles for wealthy individuals. I no longer believe that. I now believe that unit trusts are the best vehicles to build wealth. What changed? Capital gains tax and dividend tax laws contributed to making portfolios less tax-friendly. I studied research showing that concentrated portfolios with high bets don’t necessarily provide the best experience for clients because of the uncertainty of the outcome. I now believe in more diversification within a unit trust structure for a better long-term experience and a higher likelihood of success for investors. I had to review my beliefs against the new reality and the research and changed my mind.
Being too stuck in our beliefs can be detrimental. George Bernard Shaw said: ‘Progress is impossible without change, and those who cannot change their minds cannot change anything.’ If you have strong views, when was the last time you checked those views against the latest research or your current circumstances? What do you choose when faced with the choice between changing your mind and defending an opinion?
Do you need to change your mind? A good place to start is to become mindful about what you believe.
Ps. Let me know what you’ve changed your mind about lately.