Self-control is never comfortable in life or in finance.
Temporary discomfort is better than long-term regret.
Odysseus had to bind himself BEFORE the alluring call of the Sirens came.
Too many times we can assume that things will just happen.
Investing in yourself or your financial life doesn’t just happen.
Planning to save for retirement and saving for retirement are two different things.
Thinking about it, dreaming about it, and even planning for it is not enough.
One must actually do the thing.
Pre-commit to doing it because the temptation not to do it is strong.
Some even find creative ways to force themselves to do things because in the moment when the rubber hits the road they know they won’t.
In Behavioural Economics: A Very Short Introduction, the author writes,
Resisting the temptation of short-term reward is hard and many of us are prepared to buy our way out of temptation...For anyone who ever has trouble getting up in the morning, they can buy themselves a roaming alarm clock. The original product—Clocky—is an alarm clock that runs around the room so you have to chase it to turn it off…[Some businesses use] a commitment contract: if users do not achieve their commitments, then they are charged and the money goes to their chosen beneficiary.1
What are some ways you could get yourself to invest more in your financial future? Here are a few ideas:
- Set up an automatic withdrawal from your bank account on a particular date.
- Set up automatic payroll deductions through your employer or 401(k) plan.
- Use money from a side hustle to fund it.
- Habitually invest a specific percentage of every raise, debt payoff, or pleasant monetary surprise.
Don’t rely on your self-control in the moment. Too often, years go by without having done a thing. You talk to your spouse about increasing the emergency fund, or buying a house, or paying off debt, or investing more in retirement or a brokerage account. You may even hire a financial advisor to help and discuss options in meetings.
But until it’s actually done, it’s all words in the air. Excuses will never cease. Good intentions are just that: intentions, not actions.
Get creative, because you may not have enough self-control to go without it.
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Sources:
1. Michelle Baddeley, Behavioural Economics, p. 79.