Some things burn out like a sparkler in your hand. Others keep paying you back for years. Build the fireplace and stock the firewood first — fireworks later.
How do you make noticeable progress every single year?
There are two types of actions:
- Those with a long tail of results.
- Those with a short tail of results.
For example, when we go to the movies and buy popcorn or cotton candy, it’s something that makes us happy for a couple of hours. While we’re watching the film and eating something, we feel good. But the next day nothing practical is left from that “investment.” Only memories.
But when someone saves up and buys a new computer, they can use it for years and get a steady benefit from that purchase.
Let me say right away: I’m not urging anyone to give up pleasures, entertainment and spontaneous purchases in favor of useful acquisitions. I’m just illustrating a principle.
We can buy something that will pay us dividends continuously, or we can spend the same resources on a thing or an event whose effect is as short as a sparkler burning in your hand.
In recent years I’ve been trying to buy things with a very long tail of results.
When we buy a camera for the studio, for instance, it covers a lot of our needs — and we can earn extra by renting the studio out to other people.
When I work on a YouTube video, I know people will keep finding it through search forever. YouTube will send me small monetization payments, but in the podcasts we also talk about our courses, which are our main product and bring in the bulk of our profit.
When I spend my time and attention once on creating a training program, I can then sell it indefinitely. That’s how passive income gradually forms.
I could give many more examples, but I think you’ve got the point.
We either spend our resources on something one-off, or we create things and acquire tools that can give us a positive effect continuously.
Again, I’m not saying you should be a maximalist and give up everything you love doing. We’re all adults, and you can decide for yourself what to do and how.
I’m simply showing how certain processes work in my life and in my business.
It seems to me that when a person starts actively growing and wants to break through to a new level, it’s worth buying more things and taking more actions with a long tail of results.
Once your basic needs are covered and you have a certain level of stability, you can put a bigger percentage of your income into rest and entertainment with a short tail of results.
Metaphorically speaking, it’s sensible to first build a fireplace and stock up on firewood — and only then spend resources on sparklers and fireworks.
What do you think? Does this approach seem wise to you?