Have you walked, run, or climbed on a treadmill before?
It's interesting, right? Your feet keep moving but it doesn't get you anywhere. Nevermind, as long as it helps you burn as much body fat as you can!
Now if that's happening to your business or to the important areas in your life like relationship and career, to keep burning your resources and still staying at the same place is probably not something that you want.
Yet in reality, many people are stuck in this treadmill problem. They do a lot of work, but not much of those efforts go into bringing them closer towards their goals.
Like how you pay for your monthly mortgage loan repayment.
You have been paying, say $1,000 every month, for 5 years now. That's a total of $60,000. But during these early years of your loan repayment, only a super small percentage of these $60,000 that you have paid went into reducing your mortgage loan principal amount. Where did a big chunk of it go? Into servicing your loan interest.
This is a terrible realization - to know that so much of your hard-earned money has been paid out yet it has not helped you reduce much of your outstanding mortgage loan principal amount. The treadmill problem.
You know what's another definition for a treadmill? A tiresome routine.
Is there a way out from getting stuck in the treadmill problem?
You can, if you know what is stopping your progress towards your goal.
Back to the loan illustration, now you know that it's gonna take a long time to finally get your loan fully paid, because most of your early monthly repayments are going into servicing the loan interest, by just simply paying your loan repayment month after month.
So what else can you do to pay up the principal amount of your mortgage loan faster?
If you have excess cash each month after paying for all your financial commitments including your monthly loan repayment, you can dump it into paying for the principal amount of your loan.
By reducing your outstanding loan principal amount, you get to reduce your loan interest. That means less of the $1,000 from your monthly loan repayment goes into servicing your loan interest. And that also means that you will get to settle your loan faster.
Btw, we just went through a part of the risk management process!
And you have got a new plan that can help you hit your goal faster. Imagine how much more effectively going through a full risk management process can help get you closer to achieving your goal, your long-due goals.
If you have been putting a lot of effort into trying to achieve your business or life goals, you may be stuck on a treadmill that is keeping you from making true progress.
It's time to get out from it - stop burning your precious resources on things that don't matter. And risk management can help.
You can search for and find a lot of information on Enterprise Risk Management (ERM) online, just note that most information about enterprise/business risk management out there is very much more relevant to bigger organizations than to the small/medium business owners. And if you search for life risk management, you will see most information are about insurance (that's not what we are talking about here).
For an easier-to-follow risk management process tailored to your life and business needs, you are always welcome to reach out to me, as that is what I specialize in at Faithful Salt Solutions.
Still not sure what to do next?
I have done the hard work studying the major causes of the top risks identified in my most recent risk assessments on business, marriage, and career goals respectively.
You can start with the free resources I have developed to help you take your first step in addressing these top risks, any which that is relevant to you and your current goal.
Have more questions? Share your thought in the comment below, or book a complimentary Discovery Call to speak with me.