There are a number of things that are hard in life. It’s just how it is down here on Earth. Over the centuries, humans have learned to adapt and thrive through these circumstances. However, modern society seems to be going on a reverse course where we’re gradually losing the ability to stick to things. Can you blame us for knowing that we have many options?
A financial plan is a plan about one’s finances, what to do with your earned income, handling your expenses, budgeting for savings and investments, etc. Often times, its main purpose is to provide you with a systematic guide to achieve your financial goals. The goal gives birth to the plan and the plan makes the goal a reality.
The weak link is in the process and not being able to stick to it. In most cases, the plan is abandoned as soon as the financial storm has passed.
So why is it hard to stick to a financial plan?
The Culprits
There are quite a few reasons why people don’t stick to a financial plan. Sometimes, it could be a change in circumstances, or it could be that the plan wasn’t clear enough in the first place. However, in the majority of cases, it’s simply a lack of discipline and/or motivation to continue carrying out the plan.Vague Goals Or Ideals
If I don’t clearly say what my idea is or what I want to achieve, then I’m bound to be misunderstood over and over again. If you don’t have a clear direction of where you’re going, then you wouldn’t be able to differentiate which road to take and which not to.
Many people have vague financial goals and you will see it reflected on the financial plan, they just throw out a certain number and generalize it as much as possible while ignoring the specifics. For one to stick to something, it has to be very specific so that one can know what should be done today, tomorrow, next week, next month and so forth. Otherwise, you’ll just wake up one day and ask what’s next because nothing seems clear anymore.
Evolution
Circumstances sometimes change. And if you’re ‘lucky’ enough, they change for the better. This is when you find yourself in another wealth bracket and it longer makes sense to follow your outdated financial plan because you think you’ve outgrown it.Of course, with some flexibility you could’ve upgrade it to meet your new circumstances but instead you just scrap it away and forget about it. It’s akin to Living The dream too early, tasting a little bit of success and thinking that you’ve made it.
Lack Of Discipline
Who doesn’t fall prey to this one? Why does it have to be so hard to build that discipline muscle? Encountering so much resistance?We’re naturally lazy so any chance we get, we will use it to dodge the process without a concern for the long term implications. The modern era we live in also adds some complications to it because we are fed with the idea of having many options. This makes us think that there’s an easy way out that’s buried among the many options, the shortcut that we should look for.
Possible Solutions
Not being able to stick to a financial plan is not a minor problem but it’s also not that of a major problem if you know a solution on how to tackle it.
First of all, the plan has to be clear and detailed as possible, taking into account all possible changes that might occur along the way. This doesn’t mean one has to build out a master plan. It just means it has to be a very good plan.
Secondly, is doing a constant review to track one’s progress and how align it is with the plan. Have you gone off course or are you still on course? Are you moving a bit slower? This can be done every month or quarter.
Thirdly, is looking at people who are ahead of you as a source of inspiration and a motivating factor to keep going. Anytime you feel like you’re slacking behind, you can pay their profile(s) a visit to reignite the feeling of why you’re doing it, to give you a gentle push to keep going. This one works best for me especially when I hit those low levels.
A gentle push can sometimes go a long way in keeping you on track.
What would you add to the list on possible solutions to help one stick to a financial plan?
Thanks For Reading!
Profile: Young Kedar
Recent Posts;
● Making Money Work For You
● You Can Still Win In A Poor Economy
● Cash Is Not Always King But.…
● Web 3.0 Makes You A Business
● The Significance Of The Learn2Earn Model
Minnow Support : @cryptothesis