Make a commitment and stick to your goals – financial or otherwise
Making a bet requires taking on a commitment that cannot be easily reversed without quantifiable consequences at a known point in time. It is not unusual for people set up bets with friends and family to help them meet physical goals such as losing weight, stopping smoking or doing regular exercise. Website stickK.com has formalised the desire for people to have an extra incentive to meet their goals by establishing a market place where people can set up bets - or “commitment contracts” – online. This can be extended to help people meet their financial goals. StickK co-founder and Yale professor Dean Karlan argued in a magazine article that reminders and checklists are simple ways to help people meet their financial goals.
Extra weight could be added to financial reminders by taking out bets with friends and family or online as suggested by The Online Investing A1 Blog. The eZonomics video The cost of procrastination also recommends setting up bets with friends and family to help meet financial goals.
A guide to setting financial goals
Setting appropriate financial goals requires planning. The goals might include retirement or early retirement , buying a home, going on holiday - or many other things. Once goals have been set, it can pay to reinforce them by setting up nearer term objectives backed up by small bets and frequent reminders.