Long term and short term planning animated [MUSIC PLAYING] PROFESSOR: You mentioned you are driving the car at night in the complete darkness from point A to point B. They are 100 kilometers away from each other, and you roughly know where the point B is. What do you do? Of course, you just turn on the headlights, right. Now you can see only 50 meters ahead and somehow in a few hours you simply make it to the point B without much effort. How did that happen? I find this analogy very powerful. The point B is our long term goal, which may take 5, 10, or 20 years. It's your desired destination. It could be anything, running a successful , business, retiring at the age of 40, or wanting to be a top pro snowboarder. It doesn't really matter. The headlights is our short term planning for the nearest future. It could be one month, six months, or a year long. The short term goal could be to find some local successful entrepreneurs and learn from them once a month or to save 20% of the salary and invest it by the end of the year or to stop eating junk food and sign up for a gym this week. These short term goals often need to be reevaluated and updated, but eventually they will lead you to the desired point B. As long as you have the headlights on and keep in mind the long term goal, point B, you can safely drive through the darkness avoiding potholes, crossroads, traffic jams, and other obstacles life throws at us. You've probably figured out by now that the darkness represents life in this example. Some people have a clearly defined point B in their life, but they often forget to turn on the headlights, so they burn through life driving crazy circles in the complete darkness until they finally crash into some obstacle in the way that destroy the car. [Text on screen “It doesn’t work without short term planning” Other people don't have a desired point B defined, but they drive with the headlights on. And honestly, I think this is the worst category. [Text on screen “Just the headlights is not enough!!!”] At first, the ride seems much safer and more predictable, but after some time they will end up getting lost and frustrated asking themselves how did we end up in such a horrible place with all the driving done. A perfect quote comes to my mind. In the long run, we only hit what we aim at. If your long term aim was literally nothing, don't be surprised when in the end you get nothing. Here you have it. The only way out of this is to have both, a clearly defined long term goal as well as a short term planning so no matter what life throws at you during the journey you can always make it to the desired point B. [Text on screen “The choice is yours!”] [MUSIC PLAYING]