How to Avoid The 'Dumb Tax'!

Keith Cunningham talks about the 'Dumb Tax' - a tax we inevitably pay as a result of a poorly thought-through strategy.

Here is the proof: If you could reverse your 3 biggest financial stuff-ups, how much money would you now have? It's embarrassing to admit, but for me, it's a sizeable number!

Typically its erroneous assumptions and / or hyped emotions that cause these mistakes, which in hindsight were obvious! As emotions go up, intellect goes down. Its not that you have to be smarter, its that you need to do less dumb things.

One of the best ways to reduce the dumb tax (its inevitable that you will pay some dumb tax, its a matter of how much) is to hold a critical thinking session. A 45-minute session designed to slow you down, reduce emotions and help you think through the issues - the ones you don't see.

Get yourself a journal (I stand up at my 4m wide whiteboard) and start writing. Avoid distractions (email, social media pings, phone calls, walk ins) and stick with it. Some of the best ideas come in the last 15 minutes after the obvious ones are exhausted.

Here’s a step by step playbook on how to implement thinking time.

1. Actually schedule thinking time into your calendar. 45 mins is the sweet spot. Try once a week to get started.
2. Focus on one question per thinking time. This allows you to give each question the energy it deserves.
3. Find a quiet spot without any distractions.
4. Once the timer is set, you’re not allowed to move.
5. Write!!
6. Analyse your results and start to implement what needs to be done. Ideas are useless without execution.

What you’ll find is that the first several minutes will be easy. You’ll get all the low hanging fruit answers out of the way.

However, towards the end you’ll find that it’s going to take serious brain muscle to get that last 20% out. Those final ideas are going to be the best ones.