I have decided to write an annual review after first coming across the idea from the blog ‘JamesClear.com’. The main goal of this review is to reflect on the past year and see if I am getting better.
Why Annual Review?
Charlie Munger said, “If you keep a frog in a boiling hot water, it will jump out but if you keep the same frog in cold water and slowly increase the temperature, it may eventually die inside”. Small changes are so unnoticeable that the frog will eventually end up dying.
Similarly, on any given day, you may feel like you aren’t moving forward or backward. But over a long period of time, your habits can either serve you or crush you. That’s what motivated me to start reviewing myself every year and see if I’m getting better.
Every year I review three core areas of my life:
- Health
- Wealth
- Wisdom
Systems vs Goals
I have started my personal development journey back in Jan 2017. I came across this concept of systems vs goals and I was sold right then.
James Clear says, “Goals can provide direction and even push you forward in the short-term, but eventually a well-designed system will always win. Having a system is what matters.”
My system is to form habits in three core areas of my life and stay consistent. Simple but not easy.
I am a big believer in systems. Having a goal is necessary to point you in a certain direction but systems will help you achieve your goals. For example, two people might have the same goal of losing 50 pounds. If one person achieves it and the other doesn’t, it isn’t the goal that made the difference but the systems he formed to lose that weight.
There are so many things that are out of your control that can affect your goals. But, if you have a system, you can focus on things that are completely in your control. For example:
Health – I can’t control how many pounds I lose but I can control the no. of workouts I can do.
Wealth – I can’t control how the stock market behaves but I can control the amount I can save.
Wisdom – I can’t control how much smarter I can become but I can control the no. of books I can read.
After coming up with a system, the next thing I did was to start tracking my system. It is easy to slip away from your system and slowly drift in the negative direction. The reason tracking the system is important because numbers don’t lie.
Peter Drucker said, ‘’What gets measured gets managed.”
After a lot of modifications, I have finally settled on tracking one habit for each of my core value:
For Health, I track the total number of workouts I do per year.
For Wealth, I track the total savings rate per year.
For Wisdom, I track the total number of books I read per year.
In this 2021 annual review, I compare my current year to all the previous years since I started my personal development journey to see if I’m getting better. I strongly believe in the saying – “If you aren’t getting better, you’re getting worse.”
Here is the tracking of Health, Wealth, and Wisdom:
1. Health
I would consider exercise as a keystone habit, which is one of the most impactful habits I have. If I exercise – I tend to eat well, read more books, be more productive, have higher energy levels, and so on. Everything else seems to fall in place if I work out.
When it comes to exercise, I track mainly one thing which is totally in my control – the number of workouts I do. Exercise is one of the core things I value and I do CrossFit which is crucial to keep my exercise habit going. CrossFit not only helps me keep on track with my fitness but also teaches me the power of self-discipline, consistency, and a never-quit attitude.
Here is how many workouts I did so far:
| Year | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|
| No. of CrossFit Workouts | 232 | 171 | 111 | 47 | N/A |
Also, I have been tracking my PR (Personal Record) for back squat, bench press and deadlift. These are three most important compound exercises to build strength. I track my 1-rep max (maximum I can lift) to check if I’m getting stronger and fitter every year.
I know this is something I can’t control but tracking my progress keeps me motivated. Progress is addictive!
Here is my 1-rep max:
| Year | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|
| 1-Rep Max Squat (lb) | 240 | 225 | 195 | 165 | 135 |
| 1-Rep Max Bench Press (lb) | 190 | 175 | 165 | 135 | 125 |
| 1-Rep Max Deadlift (lb) | 335 | 285 | 245 | N/A | N/A |
2. Wealth
One of the key things I’m mindful of is my financial health. Wealth buys you freedom. If you want to keep doing what you want to do, you have to be financially strong. Otherwise, money has the power to influence your decisions. This is why I track my finances. I strongly believe in compounding when it comes to building wealth.
Albert Einstein said, “Compounding is the eighth wonder of the world. He who understands, earns it; he who doesn’t, pays it”. Compounding is the act of earning interest on interest. You invest to small amounts consistently which over a long time would turn into enormous wealth.
When it comes to wealth, the only thing that is totally in my control is how much I save. I track my savings rate which is the total amount saved divided by the gross income earned. My goal is to have at least a 10% savings rate and work towards a 50% savings rate in the future.
Here’s a tracking of my savings rate:
| Year | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|
| Savings Rate | 17% | 37% | 25% | N/A | N/A |
How it went: Looking at the numbers, I am still happy that I was able to save in 2021 but not higher than the previous year. I didn’t start tracking my savings rate until 2019. However, I would like to keep saving and try to increase it to 20% next year.
3. Wisdom
I wouldn’t have started my self-help journey without reading. Reading has taught me self-discipline and consistency. I constantly refer Charlie Munger’s quote: “You can’t go far ahead in your life with what you already know”.
You need to keep learning new things which is what makes you a wise person. You need to be a lifelong student. Reading books is my way of being a student for life.
When it comes to reading, I have a goal of reading at least one book per month. Here is how it went so far:
| Year | 2021 | 2020 | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|
| Number of Books Read | 23 | 32 | 21 | 9 | 13 |
Total number of books read in 2021: 23 books vs 2020: 32 books
Total number of books read since 2017: 98
How it went: Numbers have improved since the beginning of my reading journey. In 2022, I’d like to slow down on the books I read and reflect more on the classics. There is so much power in re-reading classics.
What I’m working towards?
Going forward, I would like to still keep a track of workouts, savings rate, and books I read. I want to stay as consistent as possible with these habits. I am happy with how things went in 2021.
Also, I would like to be more consistent with writing and posting on this blog in 2022. I’m planning to post every other Sunday starting Jan 2, 2022. I’m trying to focus more on posting consistently. I’m excited to see how it goes.
Conclusion
Overall, I am really happy about my habits and how year 2021 ended. I can confidently say that I’m better than what I was last year and on a path towards a better future. I keep asking these questions every time, “Am I getting better every year?” or “Does this habit add value to my life?”.
Again, small choices taken consistently over a long period of time will lead to significant results in health, wealth, and wisdom!
I can’t wait to see how 2022 turns out!