Prudent Decisions Make a Prudent Bank Account

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The necessity of doing a task every day cannot be understated. Great plans that lack implementation have the value of a written thought. Thoughts are important. Thoughts only interact with one person. In order to convert written thought into “measurable” milestones you must apply them to a situation where people interact. Each step of the day has to “actually” be a physical step. The type of steps you take need to be Prudent.

There is an interesting test called the HEXACO Personality Inventory Test (HEXACO for short). If you don’t know what this test is I will briefly touch on it.

The HEXACO is a measure of the six major dimensions of personality. The test was published by two researchers in 2009. Dr. Kibeom Lee and Dr. Michael C Ashton began the research of the approach in 2000. The HEXACO is highly cited and referenced. It is considered one of the most accurate tests currently available by a number of psychology experts. It was developed as further discoveries in psychology were made to replace previous models. The test has had numerous notable achievers test.

There is an interesting part to this test. There was a sample of test takers who were 1) self starters, 2) business owners, and 3) wealthy. These people all had something in common. In this test there are factors that identify a commonality for people who are successful. The commonality is a certain category. Each score tracked a category called “Conscientiousness”.

Conscientiousness — wishing to do what is right, especially to do one’s work or duty well and thoroughly.

A component of Conscientiousness is “Prudence”. What is Prudence with HEXACO?

The Prudence scale assesses a tendency to deliberate carefully and to inhibit impulses.

Being “impulsive” is not a characteristic of being “successful” according to the sample.

Think about it. What do children do when they are upset? They scream. Good reaction? No. Screaming is impulsive. Want to see an adult scream (allegorically)? Want to see how it works out for the screaming adult trying to be a Professional Entrepreneur? I’ll give you an example.

Imagine you are in a business meeting at a bank. You have a client partner that needs to obtain a business expansion loan. The loan is for a salon. The client partner is growing their practice and is overflowing with appointments. The client partner needs 10,000 to increase their store front. Your client partner has never taken a finance course. You know how to package a loan together and get your partner approved. Then you come into the office and the bank officer shoots a gaze of disapproval. The gaze is because your partner doesn’t speak English very good. Let’s pretend the person makes inappropriate comments. The comments are about how immigrants who don’t speak English should be deported. The person offends you. Your partner misses the comment. Let’s also imagine the bank officer is a bank approval officer for your SBA loan. Now consider you only have to see this bank person “one” time. The bank approval officer clearly offends you. Your poor client partner can’t defend themselves. You have a choice. Ignore the comment and sign the closing documents with your client partner or confront the person about prejudice.

Which decision do you make?

No decision is wrong. Let’s play each one out.

Let’s play the first situation out. You ignore the comments. You do not even recognize the comments. You ask for documents. The bank officer produces them. You sign the documents and explain it to your client partner in Spanish. In order to secure the loan the bank officer grabs a Spanish speaker to ensure that your client partner fully understands the terms. Your client partner accepts and closes the loan. You both leave and expand the practice. You have the 10,000 deposited into your client partner’s account. You obtain your $2,500 (remember Professional Entrepreneurs get high multiples for Performance Based Compensation). Your client partner thanks you. You also negotiated a 5% income trail off the increase business so you keep an ongoing relationship. You also have a reference now. You use this to get more business and obtain a few referrals. You continue to grow your income.

Let’s play the other one out. You confront the bank officer stating that their comments are rude. You explain that it is unfair to categorize this person as an immigrant. You state the person has lived in the US all their life and has a US Passport. You demand to see a manager. The manager apologizes and removes the bank officer. Unfortunately there is no one else there qualified to be an “SBA Loan Officer”. So now the manager asks you to reschedule to another branch given the level of offense. The Manager states that he will be personally responsible for finding a substitute. The Manager gives you their card. The manager informs you that the manager will follow up personally to make sure you are serviced. You thank them and leave. A week passes by. You phone the manager. The manager informs you that they have been searching all over the city but the only other SBA Loan Specialist is unavailable. SBA trained bank officers are scarce and require specialized training. You did not know that. Due to the incident about immigrants the manager “let go” the former banker. Meanwhile, your client partner has grown frustrated about the lack of follow through. You explain to your client partner it was about “integrity”. Your client partner thanks you but says they had to borrow money from their family. It took 45 days to get to the closing process. Now there is no end in sight. Now your opportunity is gone. You have a good character reference but no business reference. It is difficult to convince another person without a reference since this was your first deal. You have your reputation for being a good person but not a reputation for doing a deal.

No decision was wrong. The first decision put your principals above your desire to do a deal. The second decision focused on the task at hand in order to get what was important.

What is the difference between the two?

One ended with money in your bank account and the other resulted in no deposit. This was an actual situation by the way.

When you are working through a situation you have to ask yourself the following questions:

1) Is the person’s prejudice depriving me of my rights?

2) Is the person’s prejudice depriving me of an opportunity?

3) Is the best way to show the person they are wrong by “telling” them or by “showing” them?

In the situation above the person made a comment to you. The comment was offensive. You did not have to encourage it or even respond. You did not have to recognize it. You were not required to do anything to compromise your integrity. A Prudent decision would be to ask “What is it that the Client Partner needs me to accomplish?”

Unfortunately your Client Partner did not need your integrity, your mortal ground, or even your friendship. Your Client Partner needed your “service” to “obtain” a loan. This is a real life example of prudence versus impulsiveness. Even if the person did not want to tolerate service from that type of person the lack of knowledge about SBA training demonstrated a lack of “Prudence”.

Of course the bank officer was ignorant. Of course the bank officer was wrong. The issue is…the ignorance of the bank officer did not prevent the person (or their client partner) from any rightful service. Therefore the ignorance and belligerence of the bank officer had no effect on that deal.

The best way to demonstrate moral integrity is by prudently forcing the belligerent person to participate in an activity that is contrary to their belief. Force the belligerent person to give the “immigrant” the “loan”. Force the belligerent person to watch the “immigrant” earn more money than their annual salary in three months. Force the belligerent person to realize ignorance is the cost of “success”. Create a living example to show the belligerent person they are wrong. Find a way to make “Prudent Decisions”.

Impulsive Decisions make an Impulsive Bank Account.

Prudent Decisions make a Prudent Bank Account.

Which one do you want?


About Christopher: Christopher Knight Lopez is a Professional Entrepreneur. Christopher has opened over 7 businesses in his 14-year career. Christopher’s purpose is to take advantage of various market-driven opportunities. Christopher is a certified Master Project Manager (MPM) and Accredited Financial Analyst (AFA). Christopher previously held his Series 65 securities license. Christopher also has his General Lines — Life, Accident, Health & HMO. Christopher has managed a combined 286mm USD in reported Assets Under Management & Assets Under Advisement. Christopher has work experience in 29 countries, raised over 50mm USD for various businesses, and grossed over 7.5mm in his personal career. Christopher worked in the highly technical industries of: biotechnology, finance, securities, manufacturing, real estate, and residential mortgages. Christopher is a United States Air Force Veteran. Christopher has a passion for family, competitive sports, fishing, martial arts and advocacy for entrepreneurs. Christopher provides self-help classes for up-and-coming entrepreneurs. Christopher’s passion to mentor comes from belief that entrepreneurs need guidance. The world is full of conflicting information about entrepreneur identity. See more at

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Christopher is a Professional Entrepreneur with over 14 years of experience, a Master Project Manager, Financial Analyst, & Master Financial Planner

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