How are you incentivized? This is message 438 and day 92 in the 98-day 8-C Challenge and this message is dedicated to the memory of Charlie Munger.

Munger was Warren Buffet’s partner at Berkshire Hathaway until his death last November at the age of 99. He repeatedly highlighted the power of incentives in their businesses. The principle “Look for the incentives,” implies understanding what motivates people can provide significant clarity in analyzing deals and relationships.

I think we have to know what incentivizes ourselves too. Munger said, “The iron rule of nature is that you get what you reward for. If you want ants to come, put sugar on the floor.” So what are your payoffs? Why do you do what you do?

If you find it difficult to do something you deem important, perhaps it isn’t clear in your mind why you’re doing it, what the payoff is, the ultimate reward. Look for the incentives.