Do you feel behind when it comes to achieving your monthly, quarterly, or yearly financial goals?
In the past, things worked out great at the beginning because you were making progress and crushing your goals. But wait… two months in and you realized that something’s changed. What happened? Why did you suddenly stop?
Did work get in the way?
Are you a busy parent?
Or did you just lose all of your motivation?
Maybe all of the above.
Whether your goal is to save more money, get fit, or become the winner of America’s Got Talent, it’s important to work on them and stick to your plan. If you reallyyyyyyy wanted it that badly, you’d go get ’em, Tiger!
Today, I will share with you an approach that tends to work more often than not. Just hold your horses before we get to that section. 😉
In one of my previous posts, 11 New Year’s Resolutions That Will Improve Your Finances (#11 is a Game Changer), I talked about goals that would make you financially (and physically) healthier. If you haven’t read this post yet, go ahead and check it out. You’ll love the last two tips!
Now, it’s great to set New Year goals and actually achieve them. But according to Joesph Luciani from U.S. News, about 80% of New Year’s resolutions fail by the second week of February. No matter how good your intentions are, that’s just the unfortunate truth.
Fortunately, there are two secret ingredients that can help you!
Secret #1: Why do we fail to reach our goals?
According to this same article, it’s aligned with what I wrote in my post as well. Luciani says:
Unless you first change your mind, don’t expect your goals to materialize. As the saying goes, it’s not the horse that draws the cart, it’s the oats.
Yes, your mind and how you think will motivate you to act. In addition to changing your mindset, there’s an approach I recommend when listing out your goals.
“Well, what’s that?” you ask.
Some of you may have heard the story about Warren Buffett and his personal pilot, Mike Flint. But if not, here goes.
Secret #2: A Bedtime Story of Mike Flint’s goals
According to this story told by Mike Flint, Warren Buffett asked him to do the following:
– write down a list of his top 25 career/life goals
– review the list VERY carefully and circle his top five goals
– separate his top five goals “List A” (circled) from “List B” (his other 20 goals that are not circled)
Once that was done, Flint told Buffett that he will work on his top five immediately.
“And what about the ones you didn’t circle?” Buffett asked.
Flint’s response was: “Well, the top five are my primary focus, but the other 20 come in a close second. They are still important, so I’ll work on those intermittently as I see fit. They are not as urgent, but I still plan to give them a dedicated effort.”
Ah, that makes sense! Sounds good, right?
Buffet replied, “NO! You’ve got it wrong, Mike. Everything you didn’t circle just became your avoid-at-all-cost list. No matter what, these things get no attention from you until you’ve succeeded with your top five.”
“The difference between successful people and very successful people is that very successful people say no to almost everything.” – Warren Buffett
Unless you’ve achieved your top five goals, say no to everything from #6 to #25 regardless of how great they are!!
So, here’s an example of how the two lists should look:
Eliminate, Prioritize, and Focus
Less is always more. It’s a philosophy I go by.
According to the story, Warren Buffett says to eliminate even the “good options.” To him, the other 20 goals on your “List B” are just a distraction no matter how great they sound.
I know that there are so many great opportunities out there, but the truth is we can’t catch ’em all.
I mean, we only have a pair of hands, right?
Not to mention, we have 24 hours in a day but only about 9 to work with (and most of that time is spent at your job). This is after factoring:
– eight hours of sleep
– an hour or two to get ready (for women)
– half an hour to poop (for men)? BTW, who uses money to wipe their… you-know-what?? haha…
– an hour or two of total commute time to work, and back home
– another two to three hours to eat your breakfast, lunch, and dinner (even longer when you’re spending time with your friends and family)
For goodness sake, can you believe that 16 hours is dedicated to sleeping and just doing the basic stuff to live?? It’s no wonder why Warren Buffett says to only focus on your top five career/life goals and just forget the rest (for now)!
Overall, there’s only ONE of you!
I recommend you to read this awesome article If You Commit to Nothing, You’ll Be Distracted By Everything, by James Clear. In this article, he brings up the “complete it or kill it” approach. Clear says if something is really important to you, then complete it. If not, kill it.
It’s better to have five goals accomplished than 25 that are a quarter to half completed. The truth is that nothing will ever get done in the latter. Again, less is always more – and I mean A LOT more!
It’s okay to set short-term goals that eventually become longer-term.
So far, I’ve been talking about longer-term goals (okay, maybe your “2018 resolution” isn’t a long-term goal, but you get what I mean).
Aside from thinking about career/life goals, you can also apply Buffett’s strategy to your quarterly, monthly, or even weekly financial goals. A great way to do this is to set short-term goals that will lead you to your ultimate end goal. For example, if one of your top five financial goals for 2018 is to save at least $10,000 for your emergency fund, you might want to consider breaking this down into a weekly goal.
So, you may write down: “My goal for this week (by January 7th) is to save $200 for my emergency fund by selling $100 worth of stuff that I don’t need and saving $100 from my paycheck before buying anything.”
Next week, your goal may stay the same (i.e. to save $200 again), but your source of money may come from somewhere else.
For instance, this time, you may write down: “My goal for this week (by January 14th) is to save $200 for my emergency fund by earning $50 from mowing my neighbors’ lawns and selling one of my refurbished coffee tables that I designed for $150.”
Whether it’s weekly, monthly, or quarterly, make sure to write this down and keep track of it for the entire year. As you progress, you WILL see incredible results! If you promise me that you’ll stick to your plan despite the ups and downs, I promise you that things will work out!
Also noticed that my goal examples are specific to what I want to achieve and by a specific time (a date). When setting your goals, also make sure they are realistic and achievable. Most importantly, you must take action! But of course, don’t give yourself something that is too easy either. That would be pointless and defeats the purpose of setting goals in the first place.
Free Printable Binder That I Highly Recommend
Speaking of financial goals, I was reading Eden’s blog from Mint Notion. She just created a gorgeous “2018 Budget/Financial Freedom Binder” (free printables) for her readers to download. I downloaded this binder and I absolutely love everything about it. It’s very pretty, well-organized, and simple to use.
It will help you track your income and expenses and motivate you to spend less, save money, and pay off your debts. When it comes to budgeting tips, Eden’s your go-to girl. 🙂
To get more details about it, visit her post here. So, head on over to grab your free binder and start crushing your 2018 financial goals!
It ain’t over ’til the fat lady sings!
Again, you have to stay focus on your top five priorities! Even if you hit a roadblock halfway, don’t give up. For example, you may have missed your weekly target of $200 in your 20th week. Or even worse, you may have missed two whole months! Whether you saved $0 or $80 for that week or month, pick yourself up and keep going.
Ask yourself why you fell short of your goal.
Is it because you were too busy, lazy, or you just forgot? Perhaps the goal wasn’t realistic. Whatever the reasons, don’t give up.
At that moment, ask yourself what options you have to make up that shortfall and get back on track.
Yes, I’m telling you that it’s okay to be off track a bit sometimes (only if it’s for good reasons). All that matters is the end result.
This is the part where I’m going to tell you again and again that your mind plays a critical role in achieving your goals.
Once you tell yourself it’s over, then yes, it’s over. This becomes a self-fulfilling prophecy, so don’t let it happen to you. Tell yourself that you CAN do it! Sounds so cliche, but hey, it works!
“I didn’t come this far only to come this far” – Anonymous
80% of New Year’s resolutions fail by the second week of February according to Joesph Luciani.
There are two secret ingredients that will help you achieve your new year goals. So, don’t worry. You can still make things happen. It’s never too early nor too late!
Honestly, I just call them “life” resolutions or “life” goals because it doesn’t matter when you start. Most people like to use January as a benchmark, but I personally see every day the same way. The most important part is that you start and stick to it.
Anyway, to sum up, the two secrets are to:
1) Follow Buffett’s “A-List” (top five goals) vs. “B-List” (ignore list) strategy.
2) Change your mindset.
When you’re done writing down your 25 items and circling only your top five (and ignoring the rest), you can break them into a weekly, monthly, or quarterly progress. These baby steps will ultimately lead you to your end goal(s). Once you fully completed your top five goals, it’s time to move onto your next most important goal.
And of course, work on your mindset. If it’s determined, your actions WILL follow!
Over to you
Are you ready to crush your 2018 (*ahem* I mean “life”) goals??
Want some more Warren Buffett and RICH inspiration to get you movin’ for 2018? I got some here for you!
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I’m wishing all of you a Happy New Year! May 2018 bring you joy, health, and prosperity!