How to Stick to Your Financial Goals?

2019 is here! I wish you all a prosperous and abundant year! Hope the year brings joy and bliss in our lives!

By now most of us have already thought about the personal, professional and financial goals for 2019. Some of us have already prepared a list of SMART goals and now the real challenge begins: how to remain motivated for the whole year to stick to the goals you’ve defined. Today I want you to get acquainted with the most common sources of motivation and possible obstacles that might come your way.

Motivation is a tricky beast. Everybody says they need it, nobody knows how to create it and then they want you to be self-motivated. Go figure!

Motivation theories

Well, I am not the only one trying to solely understand and tell you what motives us to move forward.

There are many theories discussing motivation. The most well-known content theory is Maslow’s Need Hierarchy Theory classifying all human needs into a hierarchical manner from the lower (physiological needs) to the higher order (self-fulfillment needs). Ultimately, he believed that when the lower level of needs is satisfied, a higher level of needs will motivate you. However, I believe it does not fully explain what motive or demotivate us.

Process theories like Vroom’s Expectancy Theory, and Porter and Lawler’s Expectancy Theory tell us more about “how” we get motivated and how our satisfaction and rewards can motivate us to perform.

And then there is the beautiful world of discussion boards, stating:

1. You don’t need motivation, you need a plan.
2. Your goal is your motivation.

Yet I approve James Clear’s (the author of Atomic Habits) view on motivation. He believes ( and I agree): ” Motivation is often the result of an action, not the cause of it. Getting started, even in very small ways, is a form of active inspiration that naturally produces momentum.”

Motivation tips and tricks

Till now I’ve presented to you only the hard facts and theories. But what should you do when you really want to go for a shopping spree at the end of the day or enjoy a nice meal outside your home?

There are 2 things you have to do (but do that right away, it just works much better):

1. Ask yourself: what are you striving for with the goals you’ve set?
2. And automate and plan ahead as much as you can right now.

What are you striving for with the goals you’ve set?

1. Is it recognition? Then tell others about your goals and plans. This will let you be accountable and motivate you to not let others down.
2. Maybe challenge? If you feel great after tackling something that others can’t, set your goals with a bit larger risk factor. (Challenge accepted).
3. Or opportunity for growth might be motivating you? Then make sure that you have set aside frequent timeframes to study new skills.
4. Money? Develop a plan to hit on how to reach your financial targets.
5. Do you want to make a difference? This usually requires a perspective change. Remember that big project assigned to you and is the last thing you want to do? Think about the value it will bring to your manager, clients or society to motivate you to start it now.

If you’ve had a hard time keeping your resolutions, then maybe it’s time for a gut-check. Tapping into one of these motivators could be the key to helping you achieve something you’ve always thought about.

Automate and plan ahead

It is much easier to save if somebody else is doing that for you, isn’t it? It’s also much easier to plan if that has already been done beforehand.

One of your goals for 2019 might be to set up a budget. Thinking about the money you’ll save might not cut it fully. You’ll have to spend time reviewing your earnings/expenses and budget on a weekly or monthly basis. Though what you can do to ensure the success at the end of the road? Plan a time slot in your weekly or monthly schedule straight away. That way you have already preconditioned yourself for success.

You probably know how before any exercise you have to do a warm-up? (Or how you eat healthy for a whole week to binge eat a whole box of ice cream on your Friday night? Is it only me?) The same applies to your goals. If you’ve decided from Jan 1st you will cut-off all your “comfort” expenses, then by the end of February you might be fed up and no success or motivation will help you. Give yourself a “warm-up” period. Cut your expenses or increase your savings step-by-step. The long way is the road to success.

In addition, automation will help you a great deal. If you want to save or invest more, then automate the payment to your savings or investment account at the date you receive your income. That way you will be moving towards your goal without even raising a finger.

Lastly, attach a reward and cause to every financial goal. New year comes with fireworks. Why would you reaching a goal would be less of a celebratory moment? That beach vacation at the end of the road sounds nice!

I hope these tips and tricks will help you to step up your financial game! Pave the road to your financial goals and enjoy the fruits of success!

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