Why Getting Inspired is the Critical First Step Toward Reaching Your Goals

Recently my wife Jordan and I were talking about one of my favorite topics: investing. As I preached to her about the benefits of investing in her company 401(k) plan, her eyes glazed over and she completely checked out of the conversation. Finally, she interrupted me to say, “I understand how investing works, Jeff, but what’s the point? Why should we invest our money instead of just spending it?”

Why, indeed. Because I said so? Because the experts said so? No. Her question jolted me out of my reverie, and my mistake hit me. I had approached the conversation with the wrong tack, leading with information instead of inspiration. She didn’t want to know what she had to do. She needed a compelling why: an inspiring reason to set money aside.

I wonder if our conversation summarizes why many Americans have seriously underprepared for retirement? We’ve heard the math about needing to build a nest-egg, invest for the future, and hit a retirement number. But when it comes time to actually put a plan into action, we hesitate. “Why should we invest money for tomorrow rather than spending it today?”

Valid questions like this one formed the basis of the first step in our three-step approach to financial planning: get inspired. We start with getting inspired because people are not robots: We need more than logic to form a plan. A great plan starts with inspiration because visualizing what we want is motivating, particularly if we focus on the positive vs. the negative. Think about your own reasons for why investing is a good idea, and you’ll get your answer to the question above. For example:

• “We should invest money for tomorrow so we can fund memorable experiences with the people we love.”
• “We should invest money for tomorrow so we can take a year off of work to explore different cultures around the globe.”
• “We should invest money for tomorrow so we can build our dream home instead of just buying one.”
• “We should invest money for tomorrow so we can start a scholarship in memory of someone we love.”
• “We should invest money for tomorrow because compound interest will grow our money faster than putting it in a savings account, and help ensure that we can retire in Paris.”

By being specific, you will be more likely to actually follow through on your plan to reach your financial goals. Not cookie-cutter goals handed down to you by financial planners or societal or family pressure. Your goals for your life funded with your money.

Research bears out the importance of inspiration in reaching our goals. Writing for The Harvard Business Review, psychologist Scott Kaufman shares that on top of increasing well-being and creativity, inspiration is a great starting point for reaching any goal. Citing recent studies, he shares that, “Those who scored higher on the Inspiration Scale displayed increased goal progress, and their progress was a result of setting more inspired goals. Therefore, people who were generally more inspired in their daily lives also tended to set inspired goals, which were then more likely to be successfully attained.” By starting with inspiration, we have a better shot at making progress and one day reaching our long term goals.

So how did my conversation with Jordan end? After thinking about it for a moment, I said, “We should invest so that we can put our grandkids through any college they would like to attend.” She smiled and replied, “Okay. I get it.” Jordan’s grandparents invested their money well and sponsored her way through all four years of college, the best years of her life. Suddenly investing for the future wasn’t a boring way to ensure some nebulous future security. Investing became, in her mind, the gateway to helping our family reach shared goals.

As the late Steve Jobs said, “Being the richest man in the cemetery doesn't matter to me. Going to bed at night saying we've done something wonderful... that's what matters to me.” What inspires you? What wonderful life do you want to lead? Start with inspiration and we’ll help you craft a plan to propel you toward your dream.