A classic trend I have seen lately is people who fast forward voice notes. What has happened to us? We used to send letters and wait three to four weeks for a reply!
These days, if you send a WhatsApp message and the blue ticks show up with no reply, it feels like a crisis.
Your money is no different. Long-term thinking is your true north when it comes to building wealth. Wealth building is a marathon, sprints are not the norm.
Thinking long-term often means you are not phased by the noise of today. In fact, it is long–term wisdom that allows you to distinguish noise from facts.
Why Long-Term Thinking Builds Wealth and Success
Long–term is not next week or the year to come; it is decades away. This mindset holds true for fitness, wealth, and most things life affords us.
Farmers understand this principle well. In the Midlands of KwaZulu-Natal, a pine plantation can take decades before it is ready for harvesting.
We are talking about planting a small tree and waiting decades to earn returns.
Sounds a lot like long–term investing!
Many of us are spoiled by “right now” results, which is no wonder why day trading is glamorised over long-term investing.
We want convenience, speed and immediate results. Let’s face the truth: who doesn’t own an air fryer these days?
The Problem With Short-Term Thinking and Instant Gratification
I actually find that the more I make long-term decisions, the more sensible and grounded I become.
Don’t get me wrong, by the way, we still need to make “now” decisions.
For example: What should we cook for dinner? However, that fridge better be stocked with real food to choose from, otherwise you end up scrambling for Debonairs pizza in the 11th hour which is both expensive and unhealthy.
Why Consistency and Long-Term Thinking Beat Short-Term Results
The main problem with short–term thinking is that it tends to overemphasize results instead of processes. By so doing, unnecessary pressure is exerted on you, while consistency and the compounding effect are ignored. I find the opposite is equally true.
Long-term thinking still aims for results, but consistency, systems and compounding are often more valuable than the end goal itself.
Being overly results-driven can become a major problem. It forces you to flex your biceps in front of the mirror after every single gym session!
Hey, did you know your muscles actually grow during rest and recovery?
No wonder people can start running on the treadmill three times a week or adopt a strict diet, only to give up after a week or so.
Short-term thinking convinces you that it isn’t working, while things may actually be working in the background all along.
Most natural processes are long-term by nature; there is no such thing as fast-forwarded growth.
Not every situation calls for a long-term approach; some problems need a quick fix.
However, there is a rhythm: little by little, then boom, a big shift and everyone thinks it was a sudden success.
What a 500-Piece Puzzle Taught Me About Patience and Long-Term Success
This reminds me of a giant 500-piece Taj Mahal puzzle I did a couple of years back.
The story goes: my wife brought it home for me after getting it from her friend.
The friend had bought it with her boyfriend to do during their two-day getaway.
I hear they gave up after less than 20 pieces or so, reasoning that the puzzle was impossible and too difficult.
It took me about two weeks to complete the puzzle. My strategy? Put all the pieces on a giant table and do a few pieces every day.
Two weeks later, it was completed! I’m definitely not smarter than my wife’s friend.
It appears I just had a better long–term strategy.
Think about it: it takes 12 years to complete formal education, and possibly three more if you pursue a university degree.
Imagine if we demanded quick results, we would probably reason there’s no need to sit in class all day! But it is all part of the process.
Moral of the story: raising a child is not a short-term goal, and it takes hard work and time. If you think I’m lying, ask your mum.
How Compound Interest Builds Wealth Over Time
I think if we approach life with long-term thinking, we dramatically increase our chances of success, regardless of how long the process takes.
Your money is no different, by the way. Every couple of thousand rand left invested for a few decades can become real money in the future.
To illustrate this, let’s assume you invested R100,000 in a diversified global equity ETF and, purely for illustration, it achieved an average annual return of 12% over the next 50 years.
Building the first R100,000 requires discipline and consistency of a boring monthly debit order. Any guesses on how much your child could cash in after half a century?
That R100,000 could grow to roughly R28.9 million in nominal terms before fees, taxes and inflation.
Now that’s real money! No need to train your child how to play lottery.
Keep in mind that a 12% return is not guaranteed, and the future value would be very different at a lower or higher return.
R100,000 → R28.9 million
Illustration based on an assumed 12% annual return over 50 years; nominal value before fees, taxes and inflation. Returns are not guaranteed.
Why Time Is the Key to Building Wealth and Financial Freedom
I get it, we don’t all have a 50 year horizon, but we do have some horizon. Adopt a long term approach in most areas of your life and see how your chances of success increase over time.
One of the major issues with short-term thinking is that it constantly pressures you and you have to contribute more in relation to your short time.
Meanwhile, a long–term approach is realistic and practical. As much as you fight for success, keep the perspective of growth over time.
The moment you grasp this, you learn to swim with the tide, not fight it.
Time actually becomes your advantage, not something to dread.
And perhaps that’s what intentional living is all about. It’s making good decisions, today tomorrow, next week, and next month; and giving those decisions enough time to work.
Time is your secret weapon for long-term success.
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