When you have mastered budgeting and are starting to compound your capital it's helpful to develop a simple strategy to help you stick to the plan until you reach your destination.
Think of your goal at the top of a staircase and by taking gradual, consistent steps you will reach the top. Sometimes we are all too hasty go stop halfway up as we haven't got there as quickly as we want, but putting one foot in front of the other will always get you there.
Atomic Habits by James Clear covers this philosophy brilliantly and he summarises how we can teach ourselves these habits for success here:
Whichever aspect of life you choose to apply this to (fitness, diet, investment, passion, hobby etc) ask yourself can you improve your skills through repetition 1% a day? If you can that will compound to an astonishing 37 times growth in a year, and this will continue growing as long as you stay consistent.
The most important part is committing to what works for you. It can be more than 1% or it can be less, but it must be achievable.
One of the key anecdotes of this book involves Pat Riley who coached the Los Angeles Lakers at a time when they were widely thought to be the best in the NBA. After a disappointing 1986 season he implemented the Career Best Effort program targeting 1% improvement over a whole season. This excerpt below shows how he broke down their statistics to form a baseline, and each performance would be scored with players expected to improve their average:
The focus on this meant the players were continually reminded to keep progressing, simultaneously competing against their previous performances and other competitors in the league. This pushed them to achieve victories in the 1987 and 1988 NBA Finals.
Remember the destination may seem far but don't let that stop you before you complete the journey. Take the first step towards your FREEdom today by making a plan and scheduling a daily improvement in your calendar.
I hope you've found this information useful. Please send in any questions or feedback using the email button at the bottom of the page.