Is resistance a game?
It can feel a bit like that when you're almost always on the losing team. But often the reason why we lose to resistance is because we don't realise how the brain works.
And this brain stuff was studied by researchers at the University of Cincinnati. What they found was astounding. In just over 10 minutes, our brains start to waver and we lose focus. So how can we make sure we don't give in to resistance? Find out in Part 2 of the Resistance game.
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Imagine you had two loans to pay back
Loan A was $100,000 at 19% interest per annum. Loan B was $200 at 1% interest. Which loan would you pay back first? Loan A or Loan B? If you chose Loan A, then almost every financial consultant on the planet would agree with you.
Except Dave Ramsey
To everyone, but Dave, the logic is clear. Loan A has a much higher rate of interest. Logically you should pay back the higher rate of interest first. But as you'd expect, Dave disagrees.
That's because Dave understands inertia better than most other financial consultants
So what is inertia? I learned a funny definition in physics class at school. It went like this: A body in the state of rest or motion is inertia.
Hah, that made me laugh. How can you be stuck and moving, and still be in the same state? But apparently that's how inertia works. And this is Dave's advice to people who are struggling with debt.
First list all the debts on a piece of paper
All debts need to go down. Student loans, credit card, mortgage, blah, blah. Then you need to rearrange the loans based on the size of the loan. So the smallest loan goes right at the top and the biggest one right at the bottom.
And everything else in between (depending on the size of the loan). And then he instructs you to pay only the minimum payment on every debt–with one exception. After the minimum payments were made, every available dollar needs to be put towards the first debt on the list.
Incredible as it may sound, Dave is telling you to wipe out that tiny, itty-bitty $200 debt with the pathetic interest, instead of taking on the painful big amount/big interest debt.
Logically it makes no sense
But your brain doesn't always work logically when it comes to inertia. While you're lounging on the sofa, watching endless and pointless political debates on TV, your logic is telling to get off your butt. It's telling you that the debates are endless (and did we say, pointless?).
Your logic is also telling you that you should be doing some work or exercise instead of engaging in mindless drivel. So logic doesn't work. And the same applies to the debt. When Dave's clients wipe out the first debt it's not necessarily logical, but it creates a factor of momentum. First the $200 is wiped out. Then the $350. Then the $800. And so on, right up to the ‘monsta' $100,000.
The motion is what matters
A body in a state of rest or motion is inertia. And going from rest to a state of motion is impossible if you decide to take on the biggest task first.
Logic tells you that you should fix your website right now. Logic tells you that you should write that 300 page book. But Dave would say, “Go brush your teeth first.” That simple act of doing something–anything at all–gets you off your caboose and into another state of inertia: a state of motion.
So if you need to get something done, fool yourself
-Don't go for a 60 minute walk. Instead put on your shoes and decide to walk for just 7 minutes.
-Don't try to write a complete article. Just write for 14 minutes. Then stop.
-Avoid trying to clean the entire bathroom. Just attack the sink.
These tiny bits help you get to the bigger bits. Because even as you go for the 7 minute walk, you know very well that you're not going to turn around in 7 minutes.
You'll go longer and further. But the goal always needs to be 7 minutes or 14 minutes or the $200 debt. The itty-bitty bits are important, more important in fact, than the bigger goals.
When people say they feel inertia, they mostly refer to a state of laziness
Of not wanting to do anything at all. But as my physics teacher would tell you: “There's inertia and there's inertia.” And to get from one stage to another, you need to make the list in descending order of importance. Then attack the list.
And as Dave would say: Start small.
Acknowledgements
Dave Ramsey's ‘Snowball Debt' and ‘Switch' by Chip and Dan Heath. P.S. Yes I know. You're headed to Google these names, aren't you? You think you'll find out more about this book and this method of reducing debt, aren't you? But you already have the tools.
You have a piece of paper. You have a pencil or pen. And you have the methodology. So don't muck around. Get to work. You need to change that state of inertia right now.
Oh and before I go
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A very wise position to promote, Sean!
Trying to tackle a big issue without breeaking it down into bite-size bits (what I would call a task analysis ) is mind-numbing. And the end product is often substandard too – it’s a bit like building a house with no foundations. It just won’t stack upfor very long. Superficially the product looks ok, but will be fundamentally flawed. Taking time, doing a little will bring outcomes with built-in longevity.
Make today a good one- it will be a step towards a good year!
Yup, a journey of a million miles… 😉
Your point is so true. There’s a certain amount of satisfaction from scoring something off of a to-do list. It always leaves you feeling like you’ve accomplished something, even if it was only a small task, and that fuels motivation.
The way to eat an elephant is one bite at a time!
Fabulous article. I always thought inertia was just not moving. Rather changes the perspective. Thanks for the insight.
Yes, it’s a fascinating definition isn’t it? A body in the state of motion or rest, is both deemed to be in inertia.
Brilliant Sean!
I didn’t get the killer insight of this until I saw how getting the smaller things done is the key.
This is immediately actionable – thanks.
Yes, it just snowballs. Which is good for all of us. 🙂
Having reaped the benefits and seen the fruits of using Dave’s Debt Snowball, I can attest that it works. But I have never applied it to my daily life and my blogging habits. Thanks for the great reframing, I cant wait to get started using these techniques!
That’s cool, Lauren. Never “met” someone who did. 🙂 All the best for using this technique in other areas.
Sean,
As always with your articles, my time was well spent.
Thank you,
Dale
Yes! Yes! Yes! I totally agree and “get it”. Have you studied under BJ Fogg at Stanford? This is his speciality.
No I haven’t. But I will look him up. I live in New Zealand, a squillion miles from Stanford.
Good insight – an initial chunk of meaningful progress is encouraging and gets the momentum started. Thanks for sharing!
I especially liked the admonition NOT to Google and buy and read anything at all … just do it.
Thanks Sean!
Yup, because that’s the first thing people do. They think there’s this pot at the end of the rainbow, when the pot is right there. In NZ, we have a saying: Fish at your feet, first.
Dear Sean,
Thanks. That was just what I needed to hear today.
It doesn’t hurt that I’m a big Dave Ramsey fan. 🙂
Am setting my 25-minute timer after I sign off here…
Thanks again!
De nada 🙂
Sean, your article got me to thinking… I was under the belief to always place my toughest “to do” first on my list so that once completed, the rest will be easier. It’s a logical concept but in real practice, sometimes that tough task just stops me cold.
Perhaps by placing a smaller, “doable” task first, I’ll build up the momentum needed to overcome that next tougher task. Food for thought…
Thanks!
We were always told to handle the toughest thing first. And sometimes, that’s what we’ve got to do. If there’s a fire, we can’t go around planting the roses. Gotta deal with the fire first. But for most other occasions, it will stop you cold and drive you crazy. 🙂
Works for me! Especially when it comes time for housework. Which still has to get done whether you work at home or not. I need to do less surfing and more scrubbing! Great article Sean!
Thanks Sean for the great article. A good reminder to just keep going and to keep putting one foot in front of the other. Small actions lead to small accomplishments but eventually will result in the fulfillment of larger goals.
Thanks for the article Sean. Concise and informative,just the way I like them.
Your wish is my command.
I have long been a follower of Dave Ramsey. I was in debt, making my payments, not giving much thought to using credit cards or taking out car loans. I listened to Dave Ramseys CD course and not only did I get rid of all loans and credit cards, I put my teenage daughter on a cash-basis lifestyle as well. The mantra in my house is “if you don’t have the cash to pay for it, you cannot afford it.” Cars included. I can tell you that spending cash is a powerful wake-up call. It’s not just a number somewhere. It’s real money. Overall, we spend about half what we used to. And we still have PLENTY of stuff!
Well done. It’s what I grew up with, as a kid. Debt, when wrongly done, is crippling. And so is a to-do list.
Great to hear from you, Nathania.
I love to listen to Dave. Not that agree with all he says. But he runs such a great business while helping people to build a better life.
Would love to know what other lessons you have learned or can apply from what he talks about.
The question is also how does someone in New Z eland know about Dave?
Depends on “who” that someone is. 🙂 I do read a lot.
Hey Sean,
I don’t know why but my logic would be exactly like Dave’s.
The less number of debts (even if they have lousy interest rates) are a better choice than dealing with throwing money at the monster debt and still having every single tiny debt alive.
I’d rather get rid of the small ones, work my way up while having closure and I think that I would end up with a more un-cluttered view of what’s actually happening.
Sergio
PS. It would be less stressful as well.
Exacto! 🙂
Thanks Sean! Helpful – so very – for emotional overload/overwhelm too. Thanks for the reminder. First things first and keep it simple – all solutions to all problems/conundrums dont have to be sorted NOW – and chipping away works. Micheal Angelo didnt do the thinker with one chip of a chisel! and a sense of progress/achievement is good for momentum xxoo
That’s a good case study, Neil.
Thanks 🙂
Great article. I have been a big fan of “shortest job first” for years. Get the small stuff out of the way so you can focus on the big task. But I never knew why this worked – well now I do.
However I am certian that if I had to deal with debts I would go the “logical” route. Very odd.
That pesky brain – it just won’t do what you expect 🙂
This makes so much sense as a way to movitate. . .me! Just get up and get going. I love it. Love your style of writing!
Hi Sean,
As usual a great newsletter. Your newsletter is one of the two that I read regularly. This is a particularly true and important one.
Thanks,
Alexandra
Gracias.
Thanks Alexandra