What does Albert Einstein [1], a gold medal-winning Olympic Athlete, the lottery, and Afroman’s hit song ‘Because I Got High‘ have in common? They can be mapped to the 2×2 Goal matrix and help financial literacy course participants better understand how to set and attain their goals.

Setting versus Attaining a Goal

Setting and attaining goals are the Ying and Yang of what we hope to achieve. For the dreamer, setting goals is easy but attaining them challenging. For the stalwart, once a goal is set, attainment is a do or die affair – but that initial conceptualize is the hard part.

Realism and Effort

Realism and Effort are the currencies of Setting and Attaining a Goal. This results in one of four possible ranges:

1. Einstein. The physicist is alleged to have said something like: “Insanity is doing the same thing over and over again and expecting different results.” Despite the misattribution of the quote, this quadrant involves focusing all efforts on achieving an unrealistic goal. In literature, this is the stuff of heroes and legends. Unfortunately, this is also the realm of manic or compulsive behaviour particularly if the effort affects the health and well-being of goal-pursuer and those around them.
2. Olympian: To be a top athlete, you must be willing to sacrifice to pursue your dream. The difference between this person and the first person is the realism of the goal. As well, the would-be Olympian has a vision of going to the Olympics but also knows that the journey is made by winning one qualifying tournament at time.
3. Lottery: The lottery takes next to no effort but promises vast riches. Winning is also unrealistic with some odds ranging in the 1:300 million [2]. Someone has to win… it is just not likely to be you or anyone you know.
4. Afroman: Joseph Edgar Foreman released the song, ‘Because I Got High’. The character of the song had basic ambitions (go to class, clean his room or pay child support) which are thwarted by being stoned. With or without drug use, many people have dreams and ambitions but take no action to put them into play. There may be external reasons for this (demographics, social-economic, geography, etc.) or a lack of internal motivation (such as, getting high).

The Sweet Cloud of Goal Management

None of the four corners of this 2×2 matrix are particularly desirable but there is a middle ground. Note the cloud is centered mostly in the Olympian quadrant. Realistic goals and hard work make for ambitions most likely to be achieved.

The cloud touches the other three quadrants because there has to be some stretch to the goals and perhaps even a bit of luck.

Using in a Program Setting

Financial literacy programs tend to present goal setting as a mechanical affair. Set a Goal, Work Toward, Achieve it, Set another Goal. The reality is that a person is in a financial literacy program possibly because they lack the cognitive, or social skills to set and attain goals. Also the act of setting goal implicitly excludes other goals. Pursuing ‘X’ often means forgoing ‘Y’.

I intend to use this 2×2 Matrix as a way to initiate a discussion of what makes for a good goal. It will start with goals set and attained in the past and where that goal would have fit on this matrix. Conversely, what unattained goals were unrealistic or unpursued. From this, the program will move onto to the concept of SAMI Goals. Goals that are Small, Attained, Modified and Internalized.

Notes and References

1. Despite its attribution to him, there is no evidence that Albert Einstein ever said the definition of insanity, stupidity, etc. is doing something repeatedly and expecting a different result. Which is why of course I included him, but continuing to incorrectly attribute this quote to him is insanity, stupidity, ….
2. Lots of material on the odds of winning and using a lottery as a retirement strategy. The American Powerball programs seem to have the worst odds (1 in 200-300 million depending on the game). Of course, to improve your odds, just buy more tickets according to CNBC.com.