18 Aug 2025 The Power of Good Decisions

Lately, I’ve been reflecting on the importance of making good decisions—in life generally, and in personal finance especially.

Why does it matter so much?

For one, good decisions compound. They influence the opportunities we encounter and the outcomes we experience, often in ways that aren’t obvious right away.

They also build momentum. A wise choice today makes the next wise choice tomorrow a little easier. Over time, small, steady decisions create a powerful advantage.

And good decisions provide resilience. They reduce the chance of major mistakes and give us flexibility to handle the times when life doesn’t go as planned.

The encouraging truth is this: the more good decisions we make—even small ones—the less has to go perfectly for us to succeed.

Of course, the opposite is also true. Poor decisions compound as well, often leading us off course. Which raises the question: if good decision-making is so critical, why do we sometimes struggle with it?

In his book Clear Thinking, Shane Parrish argues that most bad decisions don’t come from a lack of knowledge. They come from interference—things like fear, ego, emotion, or social pressure—that get in the way of acting on what we already know.

He calls these the “forces of interference,” and they often show up in subtle ways:

• Ego makes us feel like we need an answer right now, even when patience would serve us better.
• Emotion convinces us the world is ending when the market drops, even though history tells a different story.
• Social pressure nudges us to follow the crowd, whether it’s a friend bragging about a trade or a headline warning about risk.
• Insecurity whispers that we’re behind and need to catch up fast.

The issue isn’t having these reactions—it’s acting on them without pausing.

That’s why Parrish suggests the most valuable decision making skill is creating space between stimulus and response. That’s the space where clear thinking happens.

At Beacon, helping create that space is a big part of our work with you. It’s not only about building a well thought out financial plan or prudently managing a portfolio. It’s about clarity—the confidence to make thoughtful choices, even when things feel uncertain.

In practice, this often looks like slowing down long enough to ask better questions:

• What’s really going on here?
• What is most important to me?
• Am I reacting emotionally, or responding thoughtfully?
• Will my decision today make tomorrow easier or harder?

Parrish puts it this way: “You don’t rise to the level of your goals. You fall to the level of your systems.” That’s why we place so much emphasis on building a strong, thoughtful framework for your financial life. When things get noisy, it’s the system—not the headlines—that should guide your next step.

Clear thinking is a skill. It strengthens with practice. And like most skills, it’s easier—and far more effective—when you don’t have to practice it alone.