My daughter is taking driver's education and there was a discussion on the Smith system of defensive driving. After reading it, and remembering that I learned this too many years ago, I realized that this process also makes sense for money management. The crazy thoughts that will come into the head of an economist.
Here are the rules of the Smith system in a short-form.
1. Aim High in Steering
Look 15 seconds into your future. (Don’t just look at the vehicle in front of you)
Makes sense to look into the futures.
2. Get the Big Picture
Look for Hazards. (Other Motorists, Pedestrians, Vehicle doors opening.)
Of course, a manager needs to a a sense of the big picture.
3. Keep Your Eyes Moving
Don’t stare. (Use your peripheral vision). (Stop the fixed habit stare).
Keep your eyes moving by look at all of the alternatives. Good advice.
4. Leave Yourself an Out
Monitor the space cushion around you and your bike.
You have to have an exit strategy for any investment.
5. Make sure They See You
Use your signals- (Directionals, 4-Way Flashers, Head Lights, Brake Lights, Horn, Hand Signals) Make Eye Contact.
Having a healthy dialogues with the investments made through management contact or just thorough review is very helpful.
Manage defensively your assets through the old Smith system.
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