The consequences of staying in the "gap" or "in the gain" hold profound significance for New Year's resolutions and financial goals. (Shutterstock)

In the field of financial planning, a creative concept emerges from the book “Gap and Gain,” co-authored by Dan Sullivan, founder of Strategic Coaching, and Dr. Benjamin Hardy, which reshapes the way individuals approach their finances and set goals.

The book suggests that the consequences of remaining in the "gap" or "in the gain" carry profound significance, especially in the late-January reflection on New Year's resolutions and financial goals.

Understanding the gap and the gain...a qualitative shift in financial planning

The concept of gap and gain is about connecting the starting point and the ideal goal in various aspects of life.

Applying this to financial goals,

individuals often find themselves focusing on the gap between their current financial situation and their perceived ideal financial situation

. Whether it's saving a set amount each month, reaching investment goals, or sticking to budget plans, the gap mentality reigns supreme.

As January arrives each year, the echoes of ambitious New Year's resolutions meet the reality of daily life.

It is crucial that we embrace the wisdom of Plato, who believed that contentment was the greatest wealth.

One finds that one's ideal goals have now faltered in the face of life's demands. The first month of the year has painted a bleak picture of setbacks, revealing the complex journey of self-improvement.

In this fabric of self-improvement, late January became a crossroads where ambitions collided with the complexities of human existence.

The “gap” culture is widespread and has an increased impact on the likelihood of failure to achieve financial goals (Shutterstock)

The book points out that the "gap" culture is widespread, which leads to frustration and disappointment, and, as Dan Sullivan said, this has an increased impact on the probability of failure to achieve financial goals.

The connection between happiness and the earnings gap is evident in Gallup's 2023 "State of the American Worker" report, where only 39% felt significant progress toward long-term goals, while happiness ratings ranged from 33% to 42%.

The gap trap: a financial perspective

Financial planning often exacerbates this thinking gap due to the tangible nature of monetary values. Here the book suggests that the constant pursuit of higher income, increased savings, or increased property value reflects the essence of the Stoic philosophy, “The more you have, the more you want.” However, it is crucial that we embrace the wisdom of Plato, who believed that contentment is the greatest wealth.

In the world of financial planning, being satisfied with what one has achieved, and reframing the mindset from gap to gain, becomes crucial. This mental transformation, Socrates posits, leads to the natural wealth of contentment.

Always striving to achieve goals can fall them into a gap, leading to dissatisfaction despite great achievements.

Automating financial success...a simple solution

The book suggests one effective solution to address the thinking gap in financial planning, which is simply the automation solution. By leveraging online banking and investing platforms, individuals can set specific financial goals and automate contributions toward them. Whether it's emergency savings, retirement funds, or smaller financial goals like vacations, automation provides a mechanism of control and protection from forgetfulness.

Online banking and investment platforms allow individuals to set specific financial goals and automate contributions toward them (Getty)

Automating emergency savings involves directing a certain amount to an account that is rarely looked at and monitored until an emergency arises. Retirement savings can be automated, for example, by allocating a percentage of income to a dedicated retirement savings account, with the feature of escalating for annual increases. Even smaller goals can be automated, allowing individuals to spend remaining resources without feeling guilty.

In the world of financial planning, being satisfied with what one has achieved, and reframing the mindset from gap to gain, becomes crucial.

Warning for exceptional people

The book strikes a note of caution to outliers, serial goal-setters, and competitive individuals, as constantly striving to achieve goals can trap them in the gap, leading to dissatisfaction despite great accomplishments.

“Gap and Gain” serves as a guide for individuals to change the way they think and find satisfaction in their hard work.

The book concludes by noting that the journey to financial success includes realizing whether one is stuck in the gap or living in gain.

The paradigm shift presented by Sullivan and Hardy encourages individuals, especially high achievers, to enjoy the satisfaction resulting from their financial endeavors.

So, as you evaluate your financial goals, ask yourself: Are you in the gap or the gain?

Source: Al Jazeera