Three Tips To Boost Your Financial Independence Plan's Success Rate

You know your current net worth and your average annual expenses. You also have your target number. So, now it’s time to start putting your financial independence plan together. And I’ll share my tips on creating a plan that will work, including my best tip that I learned watching basketball.

You might be wondering if it’s even necessary to create a plan. Why not just wing it? Yes, I know making a plan isn’t always fun. I like to wing it on most things myself, but I don’t think I would’ve reached financial independence, especially before turning 50, without a plan.

If reaching financial independence could be accomplished in 1-2 years and required little work, then winging it would be fine. In reality, it will take much longer for most people. For me, it took nine years AFTER putting together a plan to reach financial independence.

Planning for financial independence and retirement isn’t unlike planning for a vacation. Yet people will meticulously plan their vacation, but plan nothing for financial independence. Ask about their upcoming vacation trip, and they can give you all the details, including dates, places they’ll visit, airlines they're using, how they’re saving up for the trip, etc.

But ask them about their plan to reach financial independence with the goal of retiring one day, and most likely their answer will start with I hope. Hope is not a plan.

A goal without a plan is just a wish.” —Antoine de Saint-Exupéry, author of The Little Prince

Retirement is essentially a 15-plus-year unpaid vacation. Emphasis on unpaid. It takes more than hope to pay for a vacation that long. You’ll need a plan to amass some serious cash.

EVERY PLAN IS DIFFERENT

It would be nice if there were a one-size-fits-all plan for anyone to become financially independent. But everyone is facing different circumstances. Investing $1,000 a month might be reasonable for one person, yet impossible for another.

There are too many unique variables. Your current financial situation. Your current and future family situation. Your employment status and salary. Your current debt and savings. Where you live. The list goes on and on.

You need to come up with a plan for your unique situation. Use the kakeibo to understand your spending habits. Are your expenses lower than your income? Are you able to cover your bills for the next year? Do you have money set aside for an emergency? If you’re living paycheck to paycheck, your plan should focus on fixing this first now.

Only once you’re financially stable should you focus on financial independence. Plan how you’ll keep expenses below your income. Plan how to free up as much cash as reasonably possible for investments. Plan which types of accounts you’ll open and how much you’ll invest each month. Also, plan for things that bring you joy because you’re living for both the future and the present. Find that balance that works for you.

TIP #1: WRITE DOWN YOUR PLAN

It’s not enough to simply have an idea of how you’ll reach your goals in your head. If you’re serious about succeeding, you’ve got to physically write your plan down. It makes a tremendous difference.

According to a study by Dr. Gail Matthews at the Dominican University of California, the simple act of writing down your goals and plan boosts your success rate by 42%.

It turns out there are some pretty fascinating psychological reasons behind it.

• Deep Memory Ties: Physically writing something down triggers a process in your brain called the "generation effect." Your brain works harder to process, making it easier for you to remember later on.

• Boosting Motivation and Commitment: Seeing your goals and plan in your own writing makes it feel more real. This creates a stronger sense of ownership, boosting motivation to follow through.

• Gaining Clarity: Taking the time to write down your goals and plan helps you get super clear about what you want. This clarity reduces uncertainty and helps you figure out exactly what steps to focus on to achieve your goals.

• Constant Reminder: You’ve heard the phrase, “Out of sight, out of mind.” Having your goals and plan written on a physical sheet of paper allows you to post it somewhere visible as a constant reminder to yourself. By regularly looking at your goals and tracking your progress, you're reinforcing your focus.

So next time you’re setting goals, grab a pen and paper. It might just be the key to turning those dreams into reality!

TIP #2: BE S.M.A.R.T. ABOUT YOUR GOALS AND PLAN

When discussing the topic of written goals, New Year’s resolutions might come to mind. Every year, many people will write down their personal goals for the year. And every year, more than 90% of New Year’s resolutions end in failure.

Wait a minute, you say. What happened to boosting your success rate by 42% by writing down your goals? I knew this was a lie!

Hear me out before you dismiss the effectiveness of writing down your plan. Think for a minute about the things people write for their resolutions. They’re usually something like “I will lose weight” or “I will quit smoking cold turkey by February.”

The problem with goals like these is that they’re too vague and unrealistic. How do you measure success for a goal as vague as “I will lose weight”? Is half a pound of weight loss by year’s end a success? And how many people successfully quit an addiction like smoking cold turkey? Most New Year’s resolutions fail because they’re set up for failure.

Set yourself up for success. If you would like to earn a bigger salary, don’t write “Get a higher-paying job by the end of the year” as your goal. Too many factors are out of your control. Better goals would be “Attend one networking event a month” or “Take two classes to improve my job skills during the year.” When writing down your goals and plan, be specific and realistic.

A well-written plan and set of goals can be understood by anyone you show it to. They’ll know exactly what you plan to do and by when. You can use the S.M.A.R.T. framework (Specific, Measurable, Achievable, Relevant, and Time-based) to create your goals and tactics.

• Specific: Be clear about what you want to achieve and the steps you plan to take.

• Measurable: Your goals should have quantifiable numbers you can reference to track progress and gauge success.

• Achievable: The point isn’t to impress others with lofty aspirations. Make your goals and plan realistic within your capabilities and resources.

• Relevant: Your goals and plan should be meaningful to you. Everything should align with your broader objectives.

• Time-based: Set up clear timeframes for each of your goals and tactics. Deadlines create urgency and accountability.

Reminder: Don’t forget to print and post your goals and plan somewhere you will see them often. Don’t just leave them on your computer or phone. Avoid “Out of sight, out of mind.”

TIP #3: SHARE YOUR PLAN WITH EVERYONE

I learned my favorite tip for success from listening to the stories of former basketball player Larry Bird.

You can use this concept to force yourself into action. Once you’ve formalized your plan on paper, tell people you know. Let them know what you plan to do, including timeframes. Be specific.

Don’t just tell family members. Family members are the most lenient when it comes to holding you accountable. They’ll support you and hand you a participation prize even if you fail. You don’t want that. You want people who will really hold you accountable and give you a hard time if you fail. Tell your friends. Tell your coworkers.

Around the time I had put together my own plan, I was attending a company training program for aspiring managers. On the last day of class, we were instructed to share our career goals with everyone at our tables. By this point, we had developed friendships within our groups, and we were going to hold each other accountable.

Most people at my table said their goal was to become a manager within a year or so. One person said he would get his MBA degree within three years. I was the last to share. When it came my turn, I told everyone I didn’t have a career goal, but I did have a financial goal. I said I would be financially independent and able to retire within 13 years.

Nobody said a word, but I remember the looks on their faces. At that moment, I felt like I had to back up my claim to not look like a fool. I didn’t want to be the person they mockingly reminisced about later on.

Over the years, I continued to share my plans with friends and coworkers to put pressure on myself. Most probably thought I was full of shit, and that just added fuel to the fire. From time to time, one of my dearest friends would tauntingly ask, “So, when are you retiring?” And I would just smile and say, “I’m getting there. I’m going to make it happen.”

And I eventually did.

As someone who has had a lifelong habit of procrastination, this trick has worked for me to fulfill a big goal on more than one occasion. So give it a try.

See you at the finish line!

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Disclaimer: I’m not a licensed financial professional. This blog shares my personal experiences and opinions around money, investing, and early retirement. It’s for informational and educational purposes only—not financial, legal, or tax advice. Always do your own research or consult with a qualified professional before making any financial decisions.