You’ve probably heard that writing down your goals makes it more likely you’ll achieve them. A recent study even concluded that writing down your goals on a regular basis ups the success rate by 42% — sounds overly precise, but we’ll take the sentiment. When it comes to financial goals, though, we can do more than just write them down. Because they ultimately boil down to hard numbers, we can track our financial goals and measure our progress. As Peter Drucker, dubbed the “founder of modern management,” observed: "If you can't measure it, you can't improve it."
Do you live in South Carolina? Then quick: check to make sure you don’t live anywhere close to Simpsonville, point of sale of the winning $1.5 billion Mega Millions jackpot ticket. According to recent research, living in the same neighborhood as a lotto winner is fraught with financial hazards.
This month saw the passing of psychologist Walter Mischel, best known for his famed “marshmallow experiment” on delayed gratification. The marshmallow experiment became a symbol of the power of delayed gratification for life success. What does this mean for your finances? For starters, don’t rely on willpower for achieving your money goals. Instead spend that energy reshaping a single healthier habit next month.
Retiring by 40 is all the rage these days. After all, what could be better than leaving behind the drudgery of an office job to travel the world and Instablog about it? Unconstrained by a job, the possibilities are endless.
April is National Financial Literacy Month, so I’ve been reading stories of everyday people working through money struggles. My favorite read this month has been Make Your Kid A Money Genius (Even If You’re Not) by Beth Kobliner. The ability to stick with it and persevere matters more than your IQ and educational background. Studies show that grit leads to a more satisfied life, as well as higher income and net worth. And here’s the best part: grit can be learned, both by kids and adults.
What’s the one thing you can do to drastically reshape your long-term financial landscape and set yourself up for financial freedom? No, not investing in Bitcoin. It’s this: live below your means.