In the field of financial planning, a creative concept emerges from the book “Gap and Gain” co-written by Strategic Coaching founder Dan Sullivan and Dr. Benjamin Hardy, which is reshaping the way individuals approach their finances and set goals. Gives shape.
The book suggests that the consequences of remaining “in the gap” or “in profit” hold deep significance, especially in late January reflection on New Year's resolutions and financial goals.
Understanding the differences and benefits…a qualitative change in financial planning
The concept of gap and gain is about connecting the starting point and ideal goal in different aspects of life.
applying it to financial goals, Individuals often find themselves focusing on the gap between their current financial situation and their perceived ideal financial situation, Whether it's saving a set amount every month, reaching investment goals, or sticking to budget plans, the difference mindset reigns supreme.
As January approaches each year, ambitious New Year's resolutions are echoed by the reality of daily life.
It is important that we embrace the wisdom of Plato, who believed that contentment is the greatest wealth.
One finds that his ideal goals have now faltered before the demands of life. The first month of the year has painted a bleak picture of setbacks, highlighting the complex journey of self-improvement.
In this fabric of self-improvement, the end of January became a crossroads where ambitions collided with the complexities of human existence.
The book suggests that the “gap” culture is widespread, causing frustration and disappointment, and, as Dan Sullivan notes, this has an increased impact on the likelihood of failure to achieve financial goals.
The connection between happiness and the earnings gap is evident in Gallup's 2023 “State of the American Worker” report, where only 39% felt significant progress toward long-term goals, while happiness ratings ranged from 33% to 42%.
Gap Trap: A Financial Perspective
Financial planning often exacerbates this thinking gap due to the tangible nature of monetary values. Here the book suggests that the constant pursuit of higher income, increased savings, or increased value of assets reflects the essence of the Stoic philosophy, “The more you have, the more you want.” However, it is important that we embrace the wisdom of Plato, who believed that contentment is the greatest wealth.
In the world of financial planning, it becomes important to be satisfied with what has been achieved and reset the mindset from breakeven to profit. Socrates believes that this mental transformation leads to the natural wealth of contentment.
Always striving to achieve goals can lead them into a rut, leading to dissatisfaction despite great achievements.
Automating Financial Success…A Simple Solution
This book suggests an effective solution to bridge the thinking gap in financial planning, which is simply an automation solution. By taking advantage of online banking and investment platforms, individuals can set specific financial goals and automate contributions toward them. Whether it's emergency savings, retirement funds, or small financial goals like vacations, automation provides a mechanism of control and protection from forgetfulness.
Automating emergency savings involves directing a fixed amount of money to an account that is rarely visited and monitored until an emergency situation arises. Retirement savings can be automated, for example, by allocating a percentage of income to a dedicated retirement savings account, with a growth feature for annual increases. Even small goals can be automated, allowing individuals to spend remaining resources without feeling guilty.
In the world of financial planning, it becomes important to be satisfied with what has been achieved and reset the mindset from breakeven to profit.
Warning for extraordinary people
This book cautions outsiders, serial goal-setters, and competitive individuals, as constantly striving to achieve goals can cause them to get stuck in gaps, leading to dissatisfaction despite great accomplishments.
“Gap and Gain” serves as a guide to change the way individuals think and find satisfaction in their hard work.
The book ends by saying that the journey to financial success also includes the realization that one is stuck in the gap or living in profit.
The paradigm shift presented by Sullivan and Hardy encourages individuals, especially high achievers, to enjoy the satisfaction generated from their financial endeavors.
So, when you evaluate your financial goals, ask yourself: Are you in loss or profit?