Monday, January 19, 2015

There is only one way to ensure you spend less money

Thinking about setting goals this time of year, we tend to do things like say "I'm going to bring my lunch to work every day" because we have a goal to spend less money and perhaps get out of debt or invest in retirement or whatever.  It is a common for people to set targets like this because it gives you the ability to completely control the input that you put into your goal.  If you don't meet your target, you have nobody to blame but yourself.

Individuals do this, managers do this, companies do this.  In my experience, a target like this is a recipe for failure.

The problem is this: I've only addressed my real goal 'incidentally' as I set my target.  My assumption is that if I bring my lunch, I can save about $10 per day which gives me $200 to put on that big credit card bill.  Without a goal to reduce my debt by $200 a month or $2400 a year, I may end up just hating peanut butter that much more with nothing to show for it.

When you set a target, go right at the meat of what you want to accomplish and set that target.  Don't commit to 'how' you're going to achieve it so much...that may change day to day.  Stay focused on what you want to accomplish.

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