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Tuesday, April 29, 2014

“Underpromise and Overdeliver” to Make Financial Goals More Manageable

“Underpromise and Overdeliver” to Make Financial Goals More Manageable


Any goal set too high can become a source of major stress. As you struggle to meet that goal, you become overwhelmed and discouraged. Money site The Simple Dollar offers a straightforward solution: underpromise and overdeliver.


Writer Trent Hamm explains that many workers do this with their clients—they promise just less than they're able to deliver, and then impress their clients when they deliver more than promised. He writes:



"If you promise everything you think you can achieve, you create a very tight and difficult schedule for yourself, one that's prone to disaster if you begin to fall behind, and you're also struggling to simply deliver what was promised."



Hamm applied this psychology to paying off his mortgage. While he could afford a certain amount, he set a goal amount slightly lower than what he could afford. In doing this, he occasionally surpassed his repayment goal. While he could have committed to a higher monthly payment, making those payments would have been stressful and inhibited his motivation, Hamm explains.



"Looking back, I'm fairly certain that we would have taken longer to pay off the mortgage with double payments than with one-and-a-half payments with extra money thrown in when possible."



It's not news that much of personal finance is about mindset. And Hamm's tactic makes financial goals less intimidating. As he explains, this often compels him to want to save even more.


For more detail, check out the article in full.


Underpromise. Overdeliver. | The Simple Dollar


Photo by Elvert Barnes.




Two Cents is a new blog from Lifehacker all about personal finance. Follow us on Twitter here .


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