November 30, 2009
LISTEN: mp3 audio (9:33 min)
“The wise man does at once what the fool does finally.” – Niccolo Machiavelli
“Sully” is Capt. Chesley Sullenberger, III, the pilot of US Airways flight 1549, who flawlessly executed an emergency landing of his Airbus A320 in the Hudson River on Jan. 15, 2009, preserving the lives of all 155 passengers on board. As a result of his heroic response, Sully became an instant celebrity.
Unlike many media-manufactured celebrities, the individual behind the deed turned out to be just as impressive. Speaking with genuine modesty, Sullenberger credited his training and vocational commitment as the elements that prepared him to perform coolly under pressure. The public’s positive response to Sullenberger’s action and his explanations created a demand for more information. This summer Sully collaborated with Wall Street Journal writer Jeff Zaslow to write Highest Duty: My Search for What Really Matters. The book, released October, 2009 not only recounts the details of the emergency landing, but devotes significant time detailing the upbringing and character-shaping events that equipped Sullenberger to handle the challenge of safely landing a plane on the water with both engines out.
For Sully, the ability to perform the unexpected under pressure was the result of a lifetime of preparation. In an October 14, 2009 WSJ column about writing the book, Zaslow discusses Sullenberger’s diligence in preparing for circumstances he might face as a pilot. This diligence was more than safety checks or reviewing accidents experienced by other pilots. Sully also believes one aspect of preparing well is having the right mindset. He tells Zaslow:
“In so many areas of life you need to be a long-term optimist, but a short-term realist.”
When you consider it, being a long-term optimist and short-term realist is a pretty solid financial philosophy as well. Things may happen, some of them bad, some of them good. Some issues may be hazardous, other benign. But on the whole, if the short-term items are handled appropriately, the long-term prognosis is over-whelmingly favorable.
This perspective usually resonates with people; at a gut level they know it is true. But quite often, other perspectives on personal finance subtly influence us to ignore or override this approach, particularly the short-term realist part of the equation.
Here’s an example: When asked, what do most Americans state as their primary financial objectives? The frequent answer: “Retirement.” This is certainly a worthy long-term objective. But applying Sully’s mind-set, what’s the best way to prepare for positive long-term success? By addressing the short-term issues realistically.
Realistically, one of the best ways to sustain a long-term saving plan is to first establish some cash savings, typically equal to three to six months of income. A financial cushion can absorb unexpected expenses without requiring either an end to long-term saving or expensive withdrawals from a retirement plan.
Realistically, one uninsured incidence of disability longer than 30 days could seriously delay or derail any retirement plans. Implementing a disability income replacement program solves this short-term challenge.
Realistically, the best time to buy life insurance is when you are young, healthy and most insurable. If circumstances deny you the time to build a retirement fund, life insurance steps in to replace your earning and saving potential.
Realistically, the longer debts remain outstanding the greater the long-term lost opportunity costs that compound against you. Planning (and acting) to become debt-free is a short-term action that will undoubtedly deliver long-term dividends.
Realistically, some of this might sound boring, and not very sophisticated. But when you consistently address your short-term economic realities, it makes you a long-term optimist.
DO YOU WANT TO GIVE YOUR LONG-TERM PROSPECTS THE BEST CHANCE TO SUCCEED?
BE DILIGENT ABOUT YOUR SHORT-TERM FINANCIAL REALITIES.
DOES PERSONAL FINANCE MEDIA “FLIP” SULLY’S PERSPECTIVE?
Just for fun, check the covers of the most popular personal finance magazines at your local bookstore rack. What do you see? How about these headlines, culled from current issues:
• “Put Off Retirement? No Way!”
• “The Best Time to Invest in a 401(k)? Now!”
• “How to Be a Better Investor”
A sizable chunk of words, column space and conversation in the personal finance media is devoted to long-term activities, like investing and retirement planning. Nowhere to be found in the headlines or as a lead story: debt, disability, life insurance, emergency savings. Even the things to do “now” (i.e., the supposed short-term things that require immediate action) are really long-term items. Why don’t the short-term realities get more ink?
Perhaps personal finance magazines figure most of their readers have already taken care of their short-term financial realities. But any quick study of Americans’ financial habits will find most of them underinsured, deficient in savings and carrying significant debt.
Another possibility is the feeling that long-term financial issues, like saving for retirement, must be addressed even if the short-term realities aren’t under control: better to start making deposits in a 401(k) at an early age and possibly have to borrow from the account than wait until the short-term issues, like debt and insurance, are resolved.
It’s not that the majority of the financial media is against savings accounts, insurance, or debt reduction. Probably the biggest reason the short-term financial issues receive less attention is because they aren’t attention-getting. There are no extraordinary gains, or tantalizing potential fortunes. The short-term issues are not often inspiring or heroic.
Interestingly, Sully acknowledges the ordinariness of his own situation, saying he is not comfortable with being called a hero for his actions. “A hero runs into a burning building,” he says. “Flight 1549 was different because it was thrust upon me and my crew…I don’t know that ‘heroic’ describes that. It’s more that we had a philosophy of life, and we applied it to the things we did that day.”
Sully received correspondence from people saying similar things. One that he found most touching said:
“It’s clear that many choices in your life prepared you for that moment when your engines failed.
“There are people among us who are ethical, responsible and diligent. I hope your story encourages those who toil in obscurity to know that their reward is simple – they will be ready when the test comes. I hope your story encourages others to imitation.”
Heroic incidents, including financial successes, are inspiring. It is good for us to know about them. But much of the success we see has a foundation of diligence and preparation. And it wouldn’t hurt if the process of laying a successful foundation received a little more press.
Filed Under: CONTROL, FLOW, MOVE, MULTIPLY, SEE, THINK | Leave a Comment
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