You and I both know setting financial goals is important. They provide direction of where you should go and how you will get there. they also help us to know when we hit a ‘enough’.
I read this anecdote from a book by the Vanguard founder John Bogle. (John Bogle, if you haven’t heard of him before, is the man often credited with making index funds popular). The story goes that Joseph Heller, a famous author, was at a party when his friend pointed out that their host, had made more money in a single day than Heller had earned from his famous book in its entire history. Heller response was ‘Yes, but I have something he will never have – enough’.
This always stuck with me as I am certainly guilty of this myself. It can be easy to hit a milestone and immediately go to the next one. It can sometimes feel quite empty, leaving me with a sense of ‘what for’. It can be easy to lose sight of joy in our achievements and get caught in a never-ending cycle of wanting more and more.
This is why celebrating your achievements is so important. It’s about appreciating the journey and finding enjoyment in what you have accomplished, and then moving on to the next big thing. This fuel is an essential component to help you to get to your next goal, and at the same time, it’s the fuel to a balanced thinking and healthy mindset. If you’re as fascinated by the human brain as I am, then let’s delve into why acknowledging and celebrating our success matters.
- Release of dopamine, the feel-good hormone. When you celebrate your win, this releases dopamine, which plays an important role in the reward system of the brain. This activate the brain’s pleasure centres, which then strengthens the neural pathways associated with these positive actions, so you are more likely to repeat those behaviours that you exhibited in the future.
- Motivation boost. When we acknowledge our achievements, we reinforce positive behaviours. This motivation can be super powerful and spurs us on to the next challenge. It’s like playing a video game. Every time you finish a level, you get reward points. These make you feel good and you keep on playing to reach the next level.
- Reduces stress. Road to financial success is challenging and can be full of pot-holes to set you back. Recognise our accomplishments can help to counteract the negative effects of stress. We shift our perspective from focusing on the pot-holes to recognising the progress that we have made and how far we have come.
- Reinforce positive behaviour. If you do something well and get acknowledged for it, then chances are, you’re going to do it again. This just creates a cycle of repeat positive behaviours, where each win bolsters your confidence and make you committed for your next set of goals.
- Promoting gratitude. Celebrating our achievements can help to encourage gratitude for the opportunities and appreciate the resources we have. The gratitude mindset helps with our overall wellbeing and help to build resilience when we face challenges.
Celebrating our wins and milestones is more than just a pat on the back moment, it is a smart investment for our financial and overall wellbeing. So next time, raise a toast, treat yourself (within reason!) and celebrate our victories, big and small. Because frankly, you deserve it.