B = MAP… Wait … What? (007)

As I’ve reflected over the years about clients who have reached their financial dreams and goals, one common trait seems to be consistent. Small steps over a period of time can produce great results!

So what does B = MAP mean? 

Recently I discovered a book by Dr. BJ Fogg entitled Tiny Habits. It’s not a financial book but an interesting idea about how you can achieve great results by instilling small habits over a period of time.

Here’s the breakdown:

B = Behavior

M = Motivation

A = Ability

P = Prompt

Behavior = Motivation + Ability + Prompt

Dr. Fogg states that a behavior will occur only when all three elements—Motivation, Ability, and Prompt—converge. For example, you’ll donate to a charity if you already wish to donate (Motivation), you receive a reminder to donate (Prompt), and you can donate easily by replying to the text message (Ability).

Now…let’s apply this principle to a financial plan.

Almost all financial plans require a behavior change. For example, you may need to start saving more…or stop spending so much. Typically to accomplish a behavior change, we may simply start doing things. Maybe we designate an amount of our income to a 401K each month. Or maybe we decide not to eat out three times each week. 

But as time goes on, our behavior may drift, lose focus, and eventually stop.

If you apply the Fogg principle to our financial planning, we must:

• Have a level of MOTIVATION to follow the plan: 

• Example: I want to retire well! 

• Have the ABILITY to accomplish the plan: 

• Example: Finding $1M under a rock is probably not high on the ability chart. Dream…but be realistic!

• Have a PROMPT that helps create a consistent habit: 

• Example: Auto drafting or depositing into your retirement plan consistently.

Obviously, this is a high-level view of Dr. Fogg’s book…but a practical one nonetheless.

If you want to discuss more about your motivation, ability, and prompts, click this link to schedule a time to talk.