Why Deadlines Can Be Great For Improving Our Financial Situation
I don’t know about you guys, but I can be a really great procrastinator sometimes.
There are times where I put things in the “too hard” basket and put it off until I absolutely HAVE to deal with it. Many of us work the same way – if we have a deadline we have to meet, we make sure that we get it done! But if there’s no deadline, we can just put it off and avoid it because we lack the same sense of urgency. This is true of our finances.
Most people find it hard to progress towards building their wealth, because they have no sense of direction or urgency to do it. I would almost bet that every single one of us has been in the situation that we cruise along, not really progressing financially. But then something comes up (like a holiday), and all of a sudden, we’ve saved up $3000 in 3 months! Why does this happen?
When we have a goal, a sense of direction and a deadline to meet this goal, we create a genuine connection with our money. Money transforms from being a general facilitator of life to something that provides us with opportunities to have fun and live our best lives. All of a sudden, you find it so much easier to say no to a night out with your friends or for that second coffee for the day because you know that it is going to get in the way of what you’re working towards!
So how can we use deadlines to build our wealth? Well that’s the easy part – goal setting. When most of us set our goals, we think about the big things like holidays and weddings, but we forget about the smaller and most important stuff.
I challenge you all to set some goals for how you can progress financially over the next 12 months. Make sure they are S.M.A.R.T goals (Specific, Measurable, Achievable, Relevant and Timebound). Some ideas could be:
Consistently stick to a personal spending limit of $200 per week (make sure you track this one!)
Reduce your credit card or personal debt from $X to $0 by the end of the year
Start investing and contribute $100 (or whatever you can afford) per month
I’d love it if you could share your goals with me below, or send me an email (email@example.com) if you’re not comfortable sharing publicly.
So what are some of my own smaller financial goals for the next 12 months?
Spending less than $100 each week on groceries
Contributing a minimum of $100 each month to my investment for my financial freedom in future
Having 1 conversation each week with a friend or family member about finance