Secrets of the Rich: Setting Good vs. Bad Goals
Secrets of the Rich
“If you want to live a happy life, tie it to a goal, not people or things.” –Albert Einstein
When it comes to saving money, many of us have the best of intentions. Maybe you made a promise to yourself last time you checked your account balance, or maybe you’re one of the 42% who made a New Year’s Resolution to save money just a few months ago.
If you set a specific goal, you’re already off to a good start. But if you’re having trouble sticking to them, maybe these secrets of the rich will help.
Do: Write goals down.
Studies show that people who write their goals down achieve them significantly more than those who don’t. This makes perfect sense because writing things down makes them concrete. A written note, such as a sticky note attached to your computer, is one of the most effective secrets of the rich.
Don’t: Make things vague or incomplete.
If you keep things in your mind, achieving them becomes harder. It’s also easier for you to adjust things when they get too hard. Without hard proof, it becomes easy to convince yourself that you “really meant” you were only going to put away $20 a month, not $40.
Do: Focus on what you can achieve.
The best kinds of goals are actions — things that you can do, personally. Goals like “I will put aside $50 of my paycheck every month,” or “I will cut down to only two Starbucks runs per week” are specific actions, things you can do to save money right now. Focusing on your actions gives you power in things.
Don’t: Set an arbitrary end goal.
More results-based goals are more likely to fail. Goals like “My checking account will have $10,000 in it at the end of the year” or “I will have enough to buy a new car” take responsibility away from you, and make it easier for you to slack off.
Teamwork is key.
Do: Have friends to hold you accountable.
Your friends probably want to save money, too. Why not do things together. Studies show that the most effective goals were ones in which the goal-setters sent weekly progress reports to supportive friends. Supporting each other in your goals makes it harder for you to quit when it gets hard.
Don’t: Set goals in secret.
Saving money is hard, and it’s harder without support. Plus, if your friends know what you’re doing, they’ll be less likely to ask you out for drinks three nights in a row.
Do: Set goals because they will make you happy.
At the end of the day, you will be more motivated to complete a goal if you know why you’re doing it. And if why you’re doing it is a personal reason, that’s even better. We suggest writing down exactly why you’re saving this money, to look at whenever you get discouraged.
Don’t: Set goals because you think you should.
If you’re saving money just because your parents said you should, or your friends, or your second-aunt twice-removed … It’s going to be a lot harder to achieve. Saving money is a mindset, and if you aren’t 100% in it, it will probably fall through before Spring.
Want to learn more secrets of the rich?
These are just some basic tips to help you budget. For more, check out our blog, or join our Millionaires University! Get in on the secret with our training!