18 Aug 2025 The Power of Good Decisions

Lately, I’ve been thinking about how much good decisions matter—in every part of life, but especially when it comes to personal finance.

Why does it matter so much?

For one, good decisions compound. Each one creates a stronger foundation for the next, shaping the opportunities we encounter and the outcomes we experience—often in ways that aren’t immediately obvious.

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 that every good decision—even the small ones—reduces how much needs 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 and smart decisions happen because it gives us time to slow down, step back, and bring clarity to the situation before reacting.

At Beacon, helping create that space is a big part of our work with you. It’s not only about designing a well-thought-out financial plan and prudently managing your 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 happening here?
• What matters most to me?
• Am I reacting out of emotion, or responding thoughtfully?
• Will this choice make tomorrow easier—or harder?

As Parrish reminds us, “You don’t rise to the level of your goals. You fall to the level of your systems.” That’s why we focus so much on helping you build a strong, durable framework for your financial life. When markets get noisy or headlines feel urgent, it’s that system—not the news cycle—that should shape your next move.

Clear thinking is like any other skill: it improves with use. And it’s far easier—and far more effective—when you don’t have to practice it on your own.

Let us know if you’d like to chat.