A gap analysis compares current performance to desired performance. We aim to identify areas for improvement. It is important that our Gap Analysis is very specific to list the steps we need to take and we must be held accountable.
Where do you Want to Be?
We frequently do a gap analysis in business to understand our mission and purpose. One quick way to start is to define where you are right now and where you want to be. In between is the bridge or gap that fills the void.
A gap analysis compares current performance to desired performance. We aim to identify areas for improvement. It is important that our Gap Analysis is very specific to list the steps we need to take and we must be held accountable. Investopedia has a detailed article if you are looking for a longer read.
Getting Started
- Where are you today?
- What is the current state of your financial independence?
- Where do you want to be?
- What is the gap (issue) needing improvement?
- What is the cause?
- What is your action plan?
Goals do not work well unless one can track progress. They require figuring out which wishes are desirable and which ones to let go. Use a written plan and stick to it. Remember sticking to one’s plan is hard work so believe that you can improve. And, set small steps. Nothing is more encouraging than small wins. As the saying goes, “The journey of a thousand miles begins with one step.”
There are days when a good goal is revising your plan, whether it be a to-do list or an outline of a more formal plan. Have “Action” items to achieve in the present to keep motivation alive. Small decisions today can make a substantial difference tomorrow. Catching a small fish can lead to the big fish. Remember, the Gap Analysis is all about problem-solving and decision-making. If my income does not cover expenses, then the gap to be filled is what to do. Should I increase income or cut expenses? What specifically, is the best first step – perhaps I stop for coffee twice a week instead of every day or purchase a used vehicle rather than new.