The 10-10-10 Rule: Filtering Financial Decisions
In a landscape defined by Volatility, Uncertainty, Complexity, and Ambiguity (VUCA), the most “foolish” approach is often the short-term one. True financial wisdom lies in the long-term perspective.
Embracing the VUCA Moment
Since early 2020, South Africans have experienced a lifetime’s worth of change in just a few short years. This “perfect storm” creates a VUCA environment:
The 10-10-10 Principle
Before you make a financial decision—whether it’s a small impulse buy or a major investment shift—pause and ask yourself how you will feel about that choice at three different milestones:
How will I feel 10 minutes from now?
How will I feel 10 months from now?
How will I feel 10 years from now?
Logic in Action: The R9,000 Gadget
| Timeline | Probable Reality |
|---|---|
| 10 Minutes | Excitement. The “new toy” rush of unwrapping the gadget. |
| 10 Months | Diminishing returns. Is it used daily, or is it just another device competing with my phone and laptop? |
| 10 Years | Obsolescence. I likely won’t even own it. I’d almost certainly prefer to have the R9,000 (plus growth) back. |
Instinct vs. Perspective
Decisions made on instinct are usually geared toward the short term. While not always bad, they rarely serve your future self. By leaning toward choices that yield the best results on a 10-year horizon, you protect your livelihood from the “noise” of the present.
Building a Long-Term Strategy
Thinking long-term is never a foolish approach. If you’re feeling overwhelmed by market volatility or uncertain financial choices, a CFP® professional can help you filter the noise and focus on what truly matters for your future.
