The Permanently Stretched Mind: Why Learning New Things Changes You Forever (And Why That's Good)

We have two cats adopted from a shelter about two years ago. They're indoor cats – we rarely let them outside, not even onto the balcony. Partly for their safety, partly because one of them has the survival instincts of a potato and would probably walk off the edge while contemplating the meaning of kibble.

But sometimes we need to air the house or let wind cool things down. So we improvised a fence using modular wire shelving at the sliding door. It lets air flow while keeping the cats safely inside and preventing what we call "the great balcony escape that would last exactly 30 seconds before panic set in."

To secure the fence, we used what Singaporeans call a "bicycle hook" – basically a bungee cord, as shown in the pic. Not super sturdy, honestly, but good enough for keeping curious (and slightly dim) cats contained.

If you look closely at the picture, you'll notice the current bungee cord is about twice its original length. It's been stretched repeatedly and eventually over-stretched. Even when not in use anymore, the cord doesn't return to its original length. It's permanently changed. Retired, if you will. Though unlike actual retirement, it didn't get a choice in the matter.

Our minds work surprisingly similarly. Minus the whole "securing cats" function, hopefully.

When we stretch our minds – by learning something new, considering perspectives that make us uncomfortable, challenging assumptions we've held since the era of dial-up internet – our minds expand. And like that bungee cord, they don't always return to their original state. Sometimes they can't. They've been permanently changed by what they encountered.

This isn't a bad thing. A mind that snaps back to its original shape after every new idea is basically a very expensive paperweight.

Abraham Maslow captured this perfectly: "If you only have a hammer, you will treat every problem as a nail." And if you're anything like me, you'll also hit your thumb, curse loudly, and then claim the nail was defective.

The more tools you have – the more ways of thinking, the more perspectives you can hold simultaneously, the more approaches you've tested – the more problems you can solve effectively. But getting those new tools means stretching your mind beyond its current comfortable shape.

Sometimes that stretch is uncomfortable. Sometimes it means questioning approaches you've been using for years because "that's how we've always done it" (the seven deadliest words in the English language, closely followed by "I'm sure I can fix this myself").

Sometimes it means admitting that what worked brilliantly at 40 might be spectacularly wrong at 60. Sometimes it means accepting that the person who disagrees with you might actually have a point. Shocking, I know.

But here's the thing about a stretched mind: it can't go back. Once you've seen a different way of thinking about something, you can't unsee it. Once you understand there are multiple valid approaches to the same problem, you can't unknow it. It's like learning the lyrics to an annoying song – good luck getting that out of your head.

The bungee cord in our door will never return to its original length. It's been permanently changed by the tension it experienced. Also by two cats who occasionally use it as a launching pad, but that's a different story.

Your mind, when you stretch it with new ideas and perspectives, might not return to its original state either. And that's exactly the point. A mind that stays the same year after year isn't a sign of consistency – it's a sign of stagnation.

The best part? Unlike the bungee cord, your mind gets stronger with stretching, not weaker. Though like the bungee cord, it sometimes needs a bit of time to recover between stretches. Don't try learning quantum physics and Mandarin simultaneously while also training for a marathon. That's just showing off (and also impossible, as I discovered).

Your Turn:
What's one belief or assumption you've held for years that got permanently "stretched" when you encountered a different perspective? Did your mind snap back to its original shape, or did it stay expanded?
When was the last time you learned something that genuinely changed how you think about a topic – not just added information, but actually shifted your entire framework?
Are you someone who actively seeks out ideas that challenge your existing beliefs, or do you (like most of us) prefer the comfortable echo chamber?

👉 Hit reply and share your thoughts – I’d love to hear what’s resonating with you.

Speaking of stretching your mind...

If you're looking for an opportunity to expand your thinking around wealth, investing, and financial planning, check out the FREE Invest 360° Conference happening soon.

Think of it as intentional mind-stretching for your investment strategy. Multiple expert perspectives, different approaches to building wealth, strategies you might not have considered. Exactly the kind of thing that leaves your mind permanently expanded (in a good way, not like an over-stretched bungee cord).

Your future self – the one with a more flexible, capable mind and possibly better investment returns – will thank you for showing up curious and open.

Learn more and register for Invest 360° →

☕ If today’s musing served up a thought to chew on, you can shout me a coffee on Ko-fi. It keeps this cosy corner of wisdom well-fuelled.

Taxing Matters – Making Your Investments Tax-Efficient

Hello, L-Plate Retirees! We've just navigated the tricky terrain of investment costs, understanding how various fees can nibble away at your hard-earned returns. Now, let's dive into another crucial area that can significantly impact your bottom line: taxes. Just like you wouldn't want to pay extra for a cup of tea, you certainly don't want to pay more tax than you have to on your investments! This is all about Tax Efficiency Considerations Worldwide, a vital component of maximizing your net returns as discussed in Risk and Return Fundamentals, and a key part of your overall Personal Financial Assessment.

First, building on our knowledge of Investment Vehicles, understand that different types have different tax characteristics. For example, ETFs often have tax advantages due to their structure, leading to lower capital gains distributions compared to traditional mutual funds. Mutual Funds typically pass through capital gains and dividends, which can mean less control over when you pay tax. Direct Security Ownership gives you the most control over when you realize gains or losses, allowing for strategies like tax-loss harvesting. This choice of vehicle directly influences your after-tax return, a critical factor in your Foundations of Investing.

Regional Taxation Approaches vary wildly. In the United States, you'll deal with long-term vs. short-term capital gains, and qualified vs. ordinary dividends. Europe is a patchwork of different rules, with varying withholding taxes and capital gains treatments by country. Asia-Pacific regions like Hong Kong and Singapore often have favorable tax treatments. It's a global maze, and what applies to your neighbor might not apply to you! This complexity underscores the importance of due diligence.

This is where Tax-Advantaged Accounts and Structures become your best friends. These are special accounts designed to help you save on taxes. Think of them as VIP lounges for your money! In the US, you have 401(k)s and IRAs. The UK has ISAs and SIPPs, Canada has RRSPs and TFSAs, and Australia has its superannuation system. These accounts allow your investments to grow with less (or no) tax drag, making a huge difference over the long term by enhancing your return and supporting your personal financial goals.

Finally, when investing across borders, Cross-Border Tax Considerations are vital. You'll encounter Withholding Taxes on dividends and interest, which can be reduced by Tax Treaties between countries. The world is also moving towards greater Global Tax Reporting (like FATCA and CRS), so transparency is increasing. Understanding these global nuances is part of building a robust Foundations of Investing.

Navigating investment taxes can feel like solving a complex puzzle, but understanding these basics can help you keep more of your investment returns in your pocket. Every dollar saved in tax is another dollar working for you!

L-Plate Takeaways

• Tax Rules Vary: Different investment vehicles and regions have unique tax implications. Do your homework, as emphasized in Foundations of Investing!

• Tax-Advantaged Accounts are Your Friends: Utilize retirement accounts (e.g., 401(k), IRA, ISA, Superannuation) to reduce your tax burden, directly boosting your net returns and aiding your Personal Financial Assessment.

• Control Matters: Direct ownership offers more control over tax timing than some funds, allowing for strategic tax management.

• Cross-Border Complexity: Be aware of withholding taxes and the benefits of tax treaties when investing internationally, a key aspect of global investing.

• Seek Advice: Tax laws are complex and change frequently. Consider consulting a tax professional for personalized advice. It's worth it, especially given the impact on your personal financial situation!