When I first started my business, I had a free one-hour consultation with a business coach. He asked me what the minimum amount of money I need to make each month is in order for me to sustain my life, and I told him, “$500”.
I’ll never forget what he said next. He told me, “If you want to make more money in your business, you’re going to have to raise that number way up”.
His advice was literally that if I wanted to make more money, I would need to increase my daily expenditure so that it would be a struggle if I didn’t make enough to cover it.
They say that pain and struggle are incredibly powerful motivators. When your next meal depends on making more, you tend to do it.
I don’t know that I agree fully with what he told me, but I think people absolutely get complacent. When you’re making plenty to get by how you’re living, you don’t feel the need to make more.
I think that’s actually why it’s such good advice to automate your finances and investments. Even buying a house makes sense, because it forces you to build that equity. You don’t have a choice not to make enough to cover it.
Without those things, people just tend to inflate their lifestyle. Nobody accumulates cash. Either they find a way to make sure that extra money gets invested (which is rare), or they just spend more every month. Usually in the form of costlier housing or a car.
In my case, I tend to just travel more but I have the luxury of that as an option.
But I don’t want to struggle. And I want to continue improving my business and making more. So how do I proceed?
The one option, as mentioned, is to automated investments, and force myself to always be struggling to have enough for everything. But again, I still have that struggle.
I guess my question to myself is whether the struggle is actually necessary. Is the human nature of complacency too strong for me to overcome?
I tend to be an idealist, and I think, “absolutely not!” But what if it is? What’s the pragmatic approach here?
What if I set rigid goals for myself? Are goals, in general, the key? Because I could say something like, “I want to cap my yearly spending at X, and I want to grow my business by Y each year” and then stick to that.
But is it really doable when I am otherwise comfortable?
I think part of the answer lies in the fact that “motivation” is fleeting, and is more or less a myth. Struggle is only supposed to be temporary. If it goes on too long you get worn out, and the motivation fades.
The solution, I think, lies in habits and an attitude where you just do things and don’t wait around for motivation. Set goals, develop a rigid plan to achieve them, and then implement.
Even if you’re comfortable financially, that time-tested course of action should work.