I have a confession to make: I really do enjoy watching television. So imagine my happiness that NBC’s The Biggest Loser is premiering another season tonight at 8 p.m. EDT. Say what you will about the show — that it exploits overweight people, etc. — but I choose to look at it more optimistically. Essentially, people who have fallen off the health-and-fitness track in life are getting another shot with some of the best resources available to take steps toward a life-altering change.
I sincerely believe there are similarities — six to be exact — between The Biggest Loser and your personal finance journey.
1. To progress toward an end goal, you must determine your starting point.
In the first episode of every Biggest Loser season, the contestants are given a physical so they know how much they weigh, their biological age, and all of the associated health risks that come with those statistics. Only then can a health-and-fitness plan be forged. This is a lot like personal finance, because I believe you must know your net worth before you can formulate any goals to work toward. If you are 400 pounds, you can’t realistically set a goal to weigh 250 pounds in a month. In finance, if your net worth is in the red due to excessive debt — college and otherwise — your first goal probably shouldn’t be to buy a BMW. Knowing that information will prevent you from making unrealistic goals you can’t possibly achieve.
2. Goals should be broken down into pieces, i.e. short-term, medium-term, and long-term.
Having an end goal, such as being 150 pounds or accumulating a net worth of $50,000 in one year, are great to strive toward. But if you don’t track your progress incrementally, you may lose sight of the end goal. Contestants on the show are weighed in weekly in order to track their progress. In the same way, you should reconcile your checking and savings accounts monthly, and calculate your net worth at least quarterly in order to ensure you are on the right track. There’s nothing more disheartening to work a whole year (or more) toward a goal, not check on your progress until right before judgment day, and realize you have much further to go than previously thought. Stay informed.
3. For each of your goals, a strict and disciplined plan must be established.
Each of the contestants are not told they have to lose X number of pounds, and then thrown back into their old world with no guidance, rules, or means to achieve their goals. They get meal plans, workout regimens, and trainers to help keep them in line. In the same way, you shouldn’t just tell yourself, “I need to really cut back on my miscellaneous spending,” while in line at Starbucks waiting to order your latte so you can stay awake for your seventh happy hour of the week. You need to sit down, create goals for yourself, and then break down where all of the money from your paycheck has to go — and stick with it. That way, you set aside enough for your bills and savings goals, while leaving some cash for yourself. If you can’t do it alone, get someone you trust to help you — be it a family member or financial planning professional — so they can provide the structure you need to succeed.
4. Small setbacks happen. It’s how you react to them that matters most.
After the initial shock of drastically changing their lifestyle and losing copious amounts of weight in the beginning, often many contestants go through spells of losing very little or even gaining a few pounds. These setbacks have spurred some to rededicate themselves and work harder, while others fall off the wagon completely. Same with your finances — you may overspend one month and get socked with overdraft fees. Will you just give up? Or, will you learn from your mistakes, do some soul searching, and come back stronger than before? The choice is ultimately yours.
5. Sometimes, plans have to change — and so do you.
Last season on Biggest Loser, Ron suffered a knee injury early on and was severely limited with regard to exercising and working out. He could have just given up, sat on the couch in the dorm at the ranch, waited until the next weigh-in to fall below the yellow line, and be voted off the show. Instead, he worked hard at the exercises he could do, ate right, and almost made it to the final three. Maybe you had some unforeseen expenses come up. You lost your job and had to dip into funds you had earmarked for other savings goals. I believe in having a disciplined plan, but you also have to be open to altering it a bit to reflect your life. If you have another mouth to feed, you better believe you’ll have to reallocate your food budget.
6. It is called a journey, not a destination, for a reason.
Some of the contestants this year have lost weight — or even been on the show before — but have relapsed and are back for a second chance. In fact, that’s the theme this year: second chances. There are going to be peaks and valleys in weight loss, personal finance, and life. Know that when you put that ice cream cone down or cut up the credit cards, you will be fighting your old habits for as long as you’re breathing. This is a lifelong journey, and while you may reach your target weight or savings goals, there will always be something else — a new challenge or goal — that comes up. Get ready for the ride of your life.
Check out my blog for more information on how to set realistic goals for yourself and get back to basics.
