Stephen Covey’s book “The 7 Habits for Highly Effective People” is about how to change your perception of the circumstances in which you find yourself and take responsibility for them.
We can be more productive and achieve our goals by being accountable.
You have probably noticed it.
The same question is asked of all successful investors, entrepreneurs, and people in interviews:
“What’s the secret to your success?”
Behind every question is a similar answer. This answer can be summarized into one word: Habits.
Although it may seem a bit cliché, the truth is that habits make all the difference in whether someone succeeds or fails.
Since we are all looking to achieve financial freedom through The Investment Club, I thought it would be interesting to sum up this book, “The 7 Habits for Highly Effective People”.
In this article we will look at the key concepts of the book. Together we will explore which attitudes, actions, and activities we need to do to make our lives more efficient and ultimately achieve financial success.
The book “The 7 Habits of Highly Effective People” was published in 1989. It is still one of the most cherished and influential books on personal development.
Many people consider this book to be a “before and after” in their lives.
Why do you love it so much?
Let’s start to research it.
Covey explains at the beginning of the book that our perceptions are what determine how we perceive the world and what happens.
Depending on how we view things, we have the option of falling into self-pity and victimhood or taking responsibility for our actions.
The first option is detrimental to our personal and professional growth.
The author suggests 7 habits to help us change our perception of the outside.
These habits are divided into three sections by Covey:
Self-control, or “private victory”: The goal of the three first habits he suggests, allows us to move from dependence and into independence.
Teamwork: – Habits 4-6 develop communication and collaboration skills that allow you to transition from independence to interdependence.
Growth: The seventh habit is to strive for continuous improvement.
It is not about changing superficially, but at a deeper level. A quick and superficial change is always temporary.
Next, we will discuss the habits that allow a person’s self-control to transform them from being dependent on others to becoming completely independent.
These are your habits.
Let’s take a look at them all one by one.
Covey says that we can be found before two types people in life.
People who are proactive – Those who can respond to problems and issues even before they arise.
People who are reactive: These people wait for the “world to guide them” and/or give them the solution. These people react to the world, rather than anticipating it.
Reactive people believe they are victims of what happens, and therefore the problem is not theirs, but external. Reactive people feel out of control and in the end it is a dangerous position.
People who are proactive are able to anticipate the future and take action. They are able to take control, decide the attitude they will adopt in every situation, and remain completely independent.
What can we do to be proactive?
According to the author,
We must be proactive and focus on the things we can do. We become stuck in problems that don’t have a solution, and we stop moving forward.
We can make our reality. This is what we take away from this section.
If we want to take this trait and use it in investment, we need to train to be proactive in that field.
We are all driven to achieve our goals. If we don’t have a goal, it can be very difficult to achieve our goals.
It is therefore important to ask these questions:
We can walk with purpose by setting goals or objectives. This will ensure that we’re moving in the right direction with the actions we take.
The author suggests that we imagine ourselves in a moment near our death and ask: What would I like to achieve or do?
Setting financial goals at the financial and investment level is crucial. This article will explain how you can do it.
>> How to effectively set and achieve financial goals (and realistically)
It is crucial to be able to prioritize once you have established a goal or purpose. What is your next step?
The author suggests that we divide all of our tasks into four blocks.
Important urgent activities: Projects nearing deadline, crisis, and unplanned activities. These are all actions we need to take care of as soon as possible. These can lead to exhaustion and stress. This person feels the need to put out fires.
These are important and not-urgent activities: exercise, planning, networking, exercise, study, growth. These are actions that will help us get closer to our goals in the long-term. These are important actions that must be done, but they should not be planned. This is why it is so important to date them.
Emails and interruptions are not important or urgent. These tasks can be delegated. These people feel out of control and their relationships are becoming superficial.
These are activities that are not urgent and important: trivia, emails, television, etc. These are activities that take valuable time and must be eliminated.
It is crucial to be able to distinguish between urgent and important.
This is why I am telling you. We often tend to focus on urgent tasks, but these are not essential. This means we can’t move towards our goal.
Gary Keller’s book “Just One Thing” is a must-read to help you prioritize your life and stop trying to do everything. Here is a summary of my thoughts on this book.
You can also see in the article how to save how to prioritize financial matters.
It is said that we can travel far by ourselves, but that we reach our destination much faster if we have someone to help us. Covey’s following habits are all about working together with others.
This is how we move from independence, which we achieved with the first three habits, to interdependence.
We will be discussing the following habits in this section:
Consider it win-win.
To understand, and then to be understood.
Let’s take a closer look at each one.
This is a habit that seeks mutual benefit.
If a person is always focused on winning and doesn’t consider the needs of others, it is common for the other party to lose or reach an agreement. This is a sign that relationships are not productive and we are punished for it.
This is why we have to work every day:
Integrity: Aligning our actions with our core values.
Maturity is the ability to communicate ideas with an equal amount of thoughtfulness and courage.
The abundance mentality: This is believing there is plenty for everyone.
“To achieve win-win, not only must you be kind but also courageous.”
Real estate investments are a good example. A profitable trade must benefit both the seller and buyer in order to be successful.
We can’t tighten the screws too much in our quest to win, but we must remember the seller’s needs. In the end, the seller will refuse us to sell and we won’t be able to gain any economic benefits. Both sides will lose. The key is to find a middle ground that both sides can win.
This habit is related to the previous one.
To have relationships that win for both of us, we must first understand each other’s needs and desires.
If we don’t have a deep understanding of the situation, it is impossible to offer solutions or suggest actions.
This requires empathy and active listening.
This is a key skill that great entrepreneurs use every day.
We can grow our “contact list” if we treat people with kindness and look for the “win-win” situation. When we need help or follow us, we will have a large list of people at our disposal.
These synergies enable us as a group to discover new options and be open to possibilities.
This is especially true in the world of investment.
You can discover profitable investment opportunities by sharing your ideas and knowledge with more experienced people.
Part 3: Continuous improvement
Covey says that in order to keep improving and applying all of the habits we have observed so far, it’s necessary to add the seventh habit. This is the one that will sharpen your ax.
Let’s find out what this all means.
If the ax isn’t sharp enough, a lumberjack will not be capable of cutting a tree.
What does this all mean?
We are often so focused on what is important that we forget about something completely vital.
To keep moving forward, we must allow ourselves to recharge our energy.
In this instance, energy would be the ax used by the lumberjack.
Covey explains the four aspects we need to take care of.
Physical: Exercise, healthy eating, and sleeping enough to recover.
Spiritual: Meditation, self-knowledge, reading, listening to music, etc.
Mind: Continuously training yourself to learn, explore new ideas, and teach others. Subscribe to my newsletter to keep up to date on all things finance and investment. You will also receive a complimentary guide that will tell you how to make passive income and achieve financial freedom.
Heart: Spending time with family and friends, nurturing relationships, and developing an emotional connection.
You will get better results if you keep your axe sharp.
If you don’t take care of other aspects of your daily life, it is pointless to have a lot of wealth. True balance is the key to happiness.
[Conclusion] The 7 habits of highly successful people can help you become a better investor.
These habits can be incorporated into your daily life and you will see the difference in every area of your life.
Actually, I want you to stress that…
These 7 habits can be applied to investing and finance.
This is why I recommend you read “The 7 Habits of Highly Effective People” and start to incorporate these new habits into your daily life. You will be amazed at how your financial situation, as well as your personal and professional, starts to improve.
While you may be able to appreciate the small changes over the short-term, you’ll soon see the effects of the long-term changes. It is clear that it is worth the wait. I know firsthand that transformation can lead to personal and financial success.
Hey, Campbell here.
I am a literary enthusiast. It's not just books I like but comics to. In fact, I grew up on comics and have now progressed to fiction and nonfiction books. I love them both.
I've been wanting to start this blog for a long time and am happy to say it has arrived.
Check it out!Find Out More