From my experience with people and money, I've decided we're just fancy monkeys.
We respond well to positive re-enforcement and no so well to negative ones. While negative re-enforcement will work for a short period of time, I can guarantee you that a banana will get you a monkey faster than a finger wagging.
When we want to meet financial goals, we need to set the course and then anchor ourselves with what we will truly have when we get there. For example, if you want to save $500 a month into your retirement account this year then there are some steps you need to take.
1. Visualize how amazing you want your retirement to be. Greek Islands? Turkish Coast? Maybe NYC? Get the excited feeling when you think about it. Butterflies signal that you're there.
2. Set up a set amount – say, $500 – to be automatically withdrawn from your account, so you don't have the chance to stop it. Be sure to set up the auto-investment part too, so that you are buying good investments that will pay you a dividend. Dividends are the key to my heart (and help us earn more!).
3. This is the best part. What are you going to get if you do it? You could get hit by a tractor and not be able to enjoy it, so how do you still live for the now while saving? What kind of banana do you want? If you invested $500 a month into a registered retirement plan you would get some tax back at the end of the year. Allocate that money towards a trip, motorcycle or scuba-diving lessons that would truly motivate you to keep up the saving.
You get an amazing retirement, and get to live for today too.
Love your money and it'll love you back.
Dave
David C. Lester is a Professional Financial and Life Coach and author of the popular Canadian personal finance lifestyle blog, iheartmoney.ca. Throughout his career he’s gained his personal finance expertise from holding advisory positions within various financial institutions. David currently resides in Toronto, ON with his family dearest friends never far away. In his spare time Lester is an active equestrian and is passionate about art.
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