People often establish goals when it comes to their finances, their careers and their lifestyle choices. However, only a small fraction of the goal-setters will actually accomplish their goal. Most of the time, people who abandon their goals offer countless excuses such as the difficulty of the tasks and the lack of time or even the lack of luck.
However, there is nothing but one reason why most people quit on their goals; they lack motivation. Likewise, the stakes are low. Thus, they start to become complacent. In order for us to achieve our goals, the stakes should go higher.
The idea of using the “carrot technique” may not be appealing sometimes. The successful you are, the more carrots you’ll have and you won’t probably risks for a single carrot. In such cases, using the “whip technique” may pose better results.
The whip is the complete opposite of the carrot. The whip pertains to punishment, consequence or loss. The best way to battle our complacency is to put our carrots at stake. Needless to say, the use of commitment contracts with financial stakes is a great way to motivate people to achieve their goals.
Basically, a commitment contract is a personal commitment to achieve a certain goal on a fixed or continuing period. There are a lot of commitment contracts online some of which offers an option of including a financial stake.
Having a financial stake in your commitment contract will dramatically increase your motivation to accomplish your goals. Hence, the following are some of the basic reasons as to why.
The goal starts to become more challenging
Having a financial stake in your commitment contract will make your goal more challenging. It will further entice you to work harder and put more effort into working towards your goal. A common reason why employees leave their job is the lack of challenge and the same is true in commitment contracts.
Financial stakes serve as a secondary purpose
While achieving the goal is the main purpose, having a financial stake in your commitment contract will create a secondary purpose. The financial stake instantly makes your performance better as you are now working not just for a single purpose but for two interconnected purposes.
Financial stakes obligate people
The though of the word “obligation” might be frightening for many. However, in most cases, obligating a person is the best and only way to make a person do what you want.
More so, by obligating yourself through the use of financial stakes in commitment contracts, you are encouraging a change in mindset that will intertwine with your personality and result into better and bigger goals achieved.