Setting and keeping goals is critical to achieving great outcomes.
Forbes magazine completed a study of Harvard graduates over a 10 year period, concluding that individuals who wrote down their goals were earning 10 times more than their peers who had no written goal.
As Financial Planners we enjoy listening to clients detail their goals, whether they be financial or non-financial in nature. The best part is the overnight change, there is often a distinct behavioural shift as clients become more accountable to their verbalised goals. This begs the questions, why do people automatically become more attuned to their goals once they share it with someone, or more importantly write it down?
Behavioural scientist Robert Cialdini and author of the best seller ‘Influence the Phycology of Persuasion’ coined the theory of consistency as an explanation to this very human trait.
Specifically ‘once a person makes a decision, takes a stand, or performs an action, he or she strives to make all future behaviour match this past behaviour’. Observed in detail it is human nature to stay consistent with ones decisions, which is clearly highlighted in the study completed by Forbes above. When one is publicly accountable they are more likely to stick to their guns and achieve better outcomes.
This is no different to writing a Financial Plan. Whether your goal is a toy, investment, or comfortable retirement, the power of a written plan is accountability – putting your goals into writing, then into reality.
If you need assistance setting your goals, give the team at Steve May a call and start the conversation today.
Post by Luke Styles
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
