James Clear, author of Atomic Habits, tells an amazing story of a professional cycling coach who took his team from a 110-year losing streak, to a 178 world championships. The couch’s entire strategy was based on improving every part of their performance by 1%!
Hit Singles and Win The Game
So often, when people are wanting large victories, they often swing for the fence and end up not moving the ball forward at all. However, the most consistently successful people often focus on hitting singles and doubles. The people who consistently hit singles and doubles will win the ball game far more often than the teams that swing for the fence.
In your journey to financial freedom, it is important to focus on the small wins and allow the compound effect to work in your favor over time. For example, think of how you can improve your financial knowledge, increase your monthly savings, increase your monthly income, increase your passive income, and decrease your expenditures, all by 1% per month. If you do this consistently every month, then your financial situation will improve by 5% every month! Five percent may sound like a small amount at face value; however, you must remember that we are not dealing with addition, but rather multiplication. Every month is growing by 5% of a greater number than the previous month!
The Importance of Habits
Over the years, it has become very clear to me that goals do not cause change nor victories; habits cause change and victories. Goals are simply targets that insure your habits are moving you in the desired direction.
Have you ever found yourself setting New Year resolution goals? Maybe even making a plan of how you’re going to achieve those goals? I have; and most of those goals are either forgotten or given up on in the first six months. Goals and plans are great, and I strongly suggest that people create both plans and goals for their finances and other areas of their lives, but they mean absolutely nothing without consistent execution. Most people set goals and plans, but they don’t execute long enough for the actions to become habit. Because of this, people must continue reminding themselves to accomplish the tasks and motivating themselves to get it done. However, if you stay consistent and develop habits, then the actions become part of who you are. They are simply things you do; and in fact, it begins to feel weird when you don’t do those things.
I am often asked, “How can I measure if my habits are improving by 1%?”. The answer that I often give is that you must first track your current habits. Understanding your current habits and their effectiveness is key to measuring growth. James Clear has an amazing Habit Tracking System that I’ve really enjoyed using over the years. I believe that would be a great place to start. Once you understand what habits you currently implement and what fruit those habits produce, then you have a chance to improve those habits, and to produce a 1% increase.
Call To Action
Education is not effective without implementation, so don’t stop reading about improvement! Take your next step toward building a better financial situation for yourself. I encourage you to take action on the following tasks:
- Track your current habits and evaluate if those habits are getting you closer to your financial goals. If you would like to use James Clear’s Habit Tracker, click here.
- Identify how you can improve your financial habits by 1%. Make sure you break down each financial habit or metric separately. For example; financial knowledge, monthly savings, monthly income, passive income, and decrease your expenditures.
- Lastly, identify habits that you don’t have, that would benefit you to work on.
We are excited to see you succeed! Please feel free to share your success stories and ask any questions you may have.
As always, Follow Us to keep-up with the new concepts and tools we will be introducing in our upcoming blogs.