Have you ever worked towards a health or fitness goal, only to realize later, that you are back where you started? How about when attempting to improve your financial situation? Growth in either health or wealth is something we often strive for.
However, achieving results in either of these realms is neither simple nor easy.
Have you ever worked towards a health or fitness goal, only to realize later, that you are back where you started? How about when attempting to improve your financial situation? Growth in either health or wealth is something we often strive for. However, achieving results in either of these realms is neither simple nor easy.
For several years, I’ve worked with athletes of all ages and abilities as a coach in endurance sports, including triathlon, swimming, cycling, and running. My own history involves decades of participation and racing in these same sports. More recently, my career is dedicated to supporting people in reaching their financial goals through wealth management.
I’ve found that there are similarities in some of the difficulties that we face in taking care of our physical health and in managing our financial well being. I believe strategies that work in endurance sports can be translated to the financial realm, and vice versa. In this series, I’ll identify three of the more common challenges, as well as how to address them.
Challenge 1: When things do not go according to plan.
Even if you have a personal trainer or coach, people are busy juggling competing priorities. If you have a workout scheduled for three days of the week, what happens when you must work late, handling an emergency at work, instead of catching enough rest to get up early for your 6:00 am swim practice?
One common example that I’ve seen as a coach comes up every year. Triathlons in Canada take place in the summertime – that’s when lakes are warm enough to swim in. By summertime, athletes also have their summer plans in mind. What if that out-of-town family reunion is booked two weeks before their Ironman Triathlon, just when they should be putting in the final miles of training? Athletes are usually concerned that they can’t follow the perfect summer training plan without interruption.
Financially, we face similar challenges. A budget is straightforward to create but arduous to follow. Even with the best of intentions, you will have unplanned costs that you didn’t account for. Similarly, a 35-year retirement savings plan is a long stretch of time, during which anything can happen. We cannot predict how our lives will change over the course of 10 years.
Rules of Thumb
First: Move on.
We are not robots – there is no way that each workout will be executed as planned. What is your first reaction when you get off track? Many people self-admonish and scramble to make up for it. A well thought out plan, however, will allow for some diversions and misses. Instead, move on. If you miss a workout, skip it, and move to the next one. If you have a month with higher costs, perhaps you miss one month of savings, or dip into emergency funds, but then quickly get back into your savings plan. Getting back into the plan as quickly as possible helps you stay constructive and consistent.
Second: Follow the 80/20 rule.
When following a plan that will lead to a goal, consistency is more important than perfection. Many athletes will go through period of feeling fatigued or unmotivated. Rather than skipping the workout, a better approach is to decide to try part of a workout. Sometimes, getting started is enough to realize you can do the entire thing.
It’s interesting to note how often we can achieve most of our goal by being consistent rather than perfect. Budgeting, saving, and investing regularly over 5 or 10 years can make a big difference, and leaves room for those times when you need to spend more or save less.
Third: Set reasonable goals.
If you do see that, time and time again, you need to take breaks from your plan, perhaps its time to talk to your coach or investment advisor and reset your plan. If weekly or monthly targets are often unmanageable, then perhaps your plan is too stringent.
As a coach and investment advisor, I see this time and time again, with people who are managing themselves. It’s very difficult to judge our own abilities and I believe most people overshoot what they are capable of in the short term, and underestimate what they can achieve in the long term.
Ultimately, Even the most dedicated athlete or saver will be faced with times when they are not able to follow their intended plan. In fact, it’s inevitable. By choosing how you manage these situations, you can move smoothly through the bumps in the road and stay on course to achieving your goals.
Disclaimer: This article is for general information purposes only, and is not legal, financial, or tax planning advice. Everyone’s situation is unique, and this article cannot apply to every person. The reader should not take any action, or refrain from taking any action, as a result of this article without first obtaining legal or professional advice.
