How to Build Better Financial Habits | Part 3
Plan for traction and get closer to your goals with Nir Eyal, Wall Street Journal bestselling author of
Next, learn how to eliminate external triggers:
In this episode, learn:
- How to define for your values and get your money to work towards them
- How to get traction in your 3 life domains: yourself, your relationships, and your work
New to this series? Watch the first episode.
Or read it in 3 minutes:
Traction is any action that moves us closer to our goals - things that we do with intent helps us live the kind of life we know we want. We can achieve that life when our time, money, and attention work towards our goals.
It's absolutely critical that we have a plan in place. To do this, we need to start with our values.
Define your values
Values attributes of the person you want to become. It’s not up to anyone else to tell you how to spend your money - it's got to be spent according to your values and your intentions. Now, how do we decide how we can spend our money in a way that's consistent with our values, with the kind of person we want to become?
The 3 life domains
The first life domain is you
It's critical that you take care of yourself, because if you can't take care of yourself, you can't take care of others, you can't make a positive impact on the world. So decide for yourself how you will spend your money consistent with your values. Maybe that involves a gym membership, proper nutrition, proper rest, and proper healthcare. Making sure you've made a budget to take care of yourself is critical.
The second life domain is the relationship domain
Many of us spend money on our relationships with whatever scraps are left over. It's important that we budget not only the time, but also the money to invest in our most important relationships.
Whether it's a date night with your spouse, going out for a fun engagement with your kids, or hanging out with your mates, it's important that we budget for our relationships. It might not only be our family and friends, but also the community. For example, donating to charity might be a way to build relationships with other members of your community.
The third life domain is the work domain
Work is our source of income, but it can also be an area to invest for future returns. Investing a portion of your salary is something you can plan for in advance.
Investing in real estate or a stock portfolio, or investing in some kind of intellectual property, such as a podcast, blog, or book, can be something that pays us future dividends. All you have to do is put in time and resources today to enjoy the fruits of labour tomorrow.
Making a plan for traction in the three life domains can keep you committed on your path towards financial freedom.
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