Why Goal Setting Will Help You Invest Better
As athletes, we consistently set goals to achieve. Winning a championship, making the playoffs, reaching a certain amount of starts, getting a goal or games played bonus, etc. By setting these goals, we give ourselves something to grasp or something within reach. Obviously every athlete wants these things, but to what extent? When you take time before a season or sit down and analyze what you truly want to achieve, you have a better chance of accomplishing that goal. There is a difference between simply wanting to get faster than to decrease your 1 mile time. I can have a goal of saying I want to lose weight which is fine but by setting a goal of I want to lose 15 pounds, I’m giving myself an actionable process/barometer to follow.
With money management, the tactics to building wealth through investing are very similar. Everyone if they had their way would love to have all the riches in the world. How will you get there though? What goals are you setting to help you on your path to financial freedom? As athletes, that are blessed with salaries and incentives at a young age compared to others it’s important we have a structure set through goal setting.
As athlete investors, it’s important to set goals rather than just invest for returns. Knowing our situation as competitive athletes it’s hard to not only think about making as much as possible. Why do you think casinos love athletes? When you shift your mindset from I’m investing for a goal over just investing to make returns you start to have a clearer mind in your decision making process and ultimately win in more cases than not. There a variety of ways to invest your money, if I was solely interested in making the most from my dollar I would probably pick the riskiest option because those come with the best rewards.
Goal setting your approach to investing will actually allow you to pick an approach that’s more within your preference. Saying I want to be able to go on a family trip ever year and go to business school without any loans is much different than simply saying I want 30x returns from all my investments. Since you know what you want now you can attack what’s needed to get it done. After you develop the steps, then you can look at options to get you there. The process gets skipped when you are just investing for returns.