Friday morning, as usual, I got up and weighed myself first thing. The scale read 171 lbs. Good news, right? This meant I was 4 lbs closer to my target of 165. I had a pretty good weekend (eating wise) and Monday morning was anxious to weigh myself so I could report to all of you how much weight I had lost. The scale showed 175lbs. So, either I gained 4 lbs over the weekend (possible, but not likely, even if I were retaining fluids) or the scale was wrong on Friday, Monday or both. Today’s weight was 174lbs.
What can we learn from this? The obvious thing to learn is that I might want to try another scale to check the reliability of my scale. (Of course, I might also be retaining water.) So, I’m going to begin weighing myself at the gym and at home a couple of times a week to see if my scale is reliable.
I find the same thing happens in business and investing. We may think we are making progress, but it could be that we simply have a scale that is giving us incorrect information. This is why good accounting and good reporting is so important.
Tonight at 7:00p.m. I am speaking in San Diego. The topic is Wealth Strategies and how to get your wealth on the fast track to financial freedom. The event is free to the public. It’s not too late, so come join us if you are in the area. I am also speaking in Los Angeles on the same topic on Thursday evening.
One of the most important things I will be talking about is getting a handle on where you are and where you are going. You must have an accurate picture of where you want to go, both in terms of your dream as well as in terms of what it will take to reach your dream (i.e., net worth and passive income). Equally important is knowing where you are now.
How good are your metrics? Are you sure you are using the right scale?