My wife and I were taking a look at some high-end luxury homes the other day. Not to purchase for ourselves, just out of curiosity. We find it fascinating that there are so many elaborate homes coast to coast, especially when you read headlines like this one…
When we arrived home, I started to research the average net worth for Americans. According to the Federal Reserve’s Triennial Consumer Finance Survey, the average net worth for the following ages are:
Under 35: $76,200
Statistics like these have always fascinated me. These net worth numbers also remind me of the importance of goal setting and the power of mindset. I speak with investors across the nation mostly every day, or at the very least, every week. It’s interesting how so many people get fixated on the magic “1 million” net worth goal or “$10,000 a month” passive income goal. Both of these are admirable goals to set out for, but these two numbers seem to always pop up. Why do so many people strive for these numbers?
Have you heard the saying “80% of success is mental and 20% is physical”?
Generally, I believe this saying holds a lot of truth. Psychology plays a major role in goal setting and personal achievement. In other words, there is a lot to be said for setting a goal of attaining $1,000,000, achieving it, but not achieving much more than that goal. Consider the saying, what you believe you can achieve. What if Americans set out to achieve a $10,000,000 net worth instead? Do you think the average US statistics would change?
Beliefs are very powerful and they can be a great tool for achieving success, but they can also limit your success. Below is a powerful exercise. I encourage you to try it:
How To Hack Your Psychology
Rather than focusing on an exact “money goal” like a $1 million net worth or $10,000 a month in passive income, write down what you actually want to experience in your life. What are your REAL goals? “Money” after all, is just paper and digital blips on a computer screen. Be as specific as possible and REALLY DO THIS EXERCISE!
Once you have written down your life goals and can clearly visualize them in your mind, you might be surprised at how many of them have nothing to do with money at all. What brings long-term happiness and joy to people most often are the non-materialistic things like spending time with family and friends, helping others, creating memorable moments, traveling, reducing stress, exercising, and having meaningful and fulfilling “work” to focus on.
Simply put, the key to “hacking your psychology” is to focus on goals that bring you happiness and inspire you. Instead of focusing on money, try to visualize how you would convert your money into the things you love most (This is the 80% mental part). Yes, money is still a contributor in all of this, so you must stay disciplined with your saving and investing routine as well (This is the 20% physical part). If you’re truly committed to your goals, you’ll be amazed at how far your net worth grows over time and how quickly you reach your goals.
“Most people overestimate what they can accomplish in a year and underestimate what they can achieve in a decade” – Tony Robbins
To Your Success
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.