In the field of financial planning, a creative concept from the book “The Gap or Gain” stands out, co-authored by Dan Sullivan, founder of Strategic Coach, and Dr. Benjamin Hardy. This concept reshapes the way individuals deal with their financial affairs and set goals.
The book highlights the deep significance of the consequences of staying in “the Gap” or “the Gain,” especially during the reflection that typically occurs in late January regarding new year decisions and financial goals.
Understanding the Gap and Gain: A Paradigm Shift in Financial Planning
The Gap or Gain concept revolves around communication between the starting point and the ideal goal in various aspects of life.
Applied to financial goals, individuals often find themselves focusing on the gap between their current financial situation and the envisioned ideal financial state. Whether it involves saving a specific amount monthly, achieving investment goals, or adhering to budget plans, the gap mentality prevails.
As January approaches each year, the echoes of ambitious resolutions for the new year collide with the realities of daily life.
It is of utmost importance to embrace the wisdom of Plato, who believed that contentment is the greatest wealth.
One may find their ideal goals stumbling in the face of life’s demands, painting a grim picture in the first month of the year, revealing the intricate journey of self-improvement.
Within this self-improvement framework, late January becomes a crossroads where aspirations clash with the complexities of human existence.
The Gap culture is widespread and has a surplus impact on the likelihood of failing to achieve financial goals.
The book indicates that the Gap culture is prevalent, leading to frustration and disappointment. Dan Sullivan mentions that this has an excessive impact on the likelihood of failing to achieve financial goals.
The link between happiness and the Gap or Gain state is highlighted in Gallup’s 2023 report titled “The American Worker State,” where only 39% felt tangible progress towards long-term goals, while happiness ratings ranged from 33% to 42%.
The Pitfall of the Gap: A Financial Perspective
Financial planning often exacerbates the gap mentality due to the tangible nature of monetary values. The book suggests that the continuous pursuit of higher income, increasing savings, or raising asset value reflects the essence of the hedonic treadmill, “the more you get, the more you want.” However, it is crucial to adopt Plato’s wisdom that contentment is the greatest wealth.
In the world of financial planning, being content with one’s achievements and shifting the mindset from the Gap to the Gain is of paramount importance. This mental shift, as Socrates assumed, leads to the natural wealth of contentment.
The continuous pursuit of goals can trap individuals in the Gap, leading to dissatisfaction despite great accomplishments.
Automating Financial Success: A Simple Solution
The book proposes one effective solution to confront the gap mentality in financial planning: automation. By utilizing online banking and investment service platforms, individuals can set specific financial goals and automate contributions towards them. Whether it’s emergency savings, retirement funds, or smaller financial goals like vacations, automation provides a mechanism for control and protection against forgetfulness.
Emergency savings automation involves directing a certain amount to an account rarely accessed and monitored until an emergency arises. Retirement savings can be automated by allocating a percentage of income to a dedicated retirement savings account, with the feature of escalating annual increases. Even smaller goals can be mechanized, allowing individuals to spend remaining resources without guilt.
The Warning to the Exceptional
The book issues a cautionary note to the exceptional, goal-setting individuals, and competitive individuals, as the relentless pursuit of goals can trap them in the Gap, leading to dissatisfaction despite remarkable achievements.
“The Gap or Gain” serves as a guide for individuals to change their thinking approach and find satisfaction in their hard work.
In conclusion, the journey to financial success entails realizing whether one is stuck in the Gap or living in the Gain.
When evaluating your financial goals, ask yourself: Are you in the Gap or the Gain?
