Habits are interesting “short cuts” that we all use. People have a natural tendency toward automated responses. The reason for these automated responses is that if we had to consciously think about everything we do, we would make no forward progress.
Driving a car and talking on a cell phone is a good example of habit. The habit of driving is well ingrained in most people, so while talking on a cell phone, we just automatically drive.
Here is an interesting scenario that demonstrates the power of habit. This scenario is pretty common. About a year ago, my wife moved the trash can in our bedroom to another location and, you know, I still find myself often automatically going to the prior location of the trash can! We all do these things.
Habit helps us by enabling us to do things without thinking and thinking is hard. While habits can be good, habits can be bad as well – smoking, excessive drinking, etc.
Our habits are often manipulated by businesses. For example, store coupons encourage us to buy items. If it is done enough, we stop thinking about it and just do it automatically. This is precisely why startup firms run their businesses at a large loss for a number of years. During those loss years, they are “training” us in the habits they want. Chewy.com, Door Dash and many others are working hard to “train” us so we don’t think. We just do!
So don’t just do it (sorry Nike). Think about it. Thinking is hard, but it can save you a crap load of money in many areas including investing!
Be smart, be well-read, be aware and be successful.
