The Misogi Challenge: Applying Its Key Principles to Financial Planning

The Misogi Challenge, rooted in ancient Shinto practices, is a modern concept that pushes individuals to attempt something so audacious that the outcome hovers between possible and impossible. This year, I embraced this philosophy by setting my sights on hiking the rugged Laugavegur Trail in Iceland—a feat that seemed just beyond my reach. Although I was already an avid hiker, I never considered myself a backpacker or thru-hiker.

As I prepared for this daunting adventure, I found myself thinking bigger and stepping far outside my comfort zone. The experience was transformative, not just physically, but mentally.

It got me thinking: what if we applied these same Misogi principles to other areas of our lives, particularly our finances?

When you set ambitious financial goals like investing in new opportunities or staying the course despite market fluctuations, you challenge yourself to step out of your comfort zone and achieve results beyond your expectations. It’s not just about the numbers; it’s about personal growth and unwavering commitment to your financial journey, even when the path seems daunting.

What Is the Misogi Challenge?

The Misogi Challenge draws its name and inspiration from an ancient Shinto purification ritual, but its modern interpretation was popularized by life and business coach Jesse Itzler. At its core, the philosophy encourages individuals to push far beyond their perceived limits, fostering tremendous personal growth in the process.

The challenge revolves around four key principles. First and foremost is the idea of pushing beyond perceived limits. This means setting a goal that seems just out of reach, something that makes you question whether you’re capable of achieving it.

Secondly, the challenge involves setting a big, audacious goal annually. This isn’t about small, incremental improvements, but rather a monumental task that requires significant effort and dedication over the course of a year.

The third principle introduces an element of risk: there should be a high chance of failure, but without risking one’s life. This balance creates the perfect environment for growth, pushing you to your limits while maintaining safety.

Lastly, thorough preparation is crucial. Despite the seemingly impossible nature of the goal, success comes through meticulous planning and consistent effort. In fact, the preparation process itself often leads to significant personal development, regardless of the outcome.

How to Apply the Misogi Challenge Principles to Financial Planning

#1: Push Yourself Beyond Your Perceived Limits

When it comes to our finances, we often hold ourselves back with limiting beliefs and self-imposed boundaries. Just as the Misogi Challenge pushes us physically, we can apply this mindset to break through our financial comfort zones.

Start by identifying your limiting beliefs about money. Do you think wealth is only for others? Or that you’ll never earn beyond a certain amount? Recognizing these thoughts is the first step to overcoming them.

To push beyond your perceived financial limits, try setting a savings goal that seems just out of reach. Or challenge yourself to increase your income by a percentage that makes you nervous. Consider investing in areas you’ve previously avoided due to fear or lack of knowledge.

Remember, growth happens at the edge of discomfort. By gradually expanding your financial comfort zone, you’ll discover capabilities you never knew you had. It’s not about reckless risk-taking, but rather calculated steps toward ambitious financial goals.

#2: Set Big, Audacious Goals Annually

In the spirit of the Misogi Challenge, setting a big, audacious financial goal can be a game-changer for your personal finances. A good goal should make you slightly uncomfortable—it’s not just a stretch goal, but something that seems almost impossible at first glance.

In addition, your goal should be specific and measurable, have a clear timeframe, and align with your long-term financial vision. It should also require significant effort and possibly even some lifestyle changes.

An example of a big, audacious annual goal might include:

• Paying off all debt, including your mortgage, within 3 years
• Saving enough to retire 10 years earlier than you originally planned
• Building a $1 million investment portfolio from scratch in 5 years
• Creating a side business that generates six figures annually

Remember, the point isn’t just achieving the goal, but the growth and learning that comes from pursuing something extraordinary. Even if you fall short, you’ll likely end up far ahead of where you started.

#3: Include an Element of Risk

Embracing the “high risk of failure” principle in finance doesn’t mean being reckless with your money. Instead, it’s about understanding that significant wealth-building often requires stepping out of your financial comfort zone and taking calculated risks.

In investing, higher potential returns typically come with higher risks. This might mean exploring options beyond traditional savings accounts, such as stocks, real estate, or starting a business. The key is to make informed decisions based on thorough research and a solid understanding of the risks involved.

However, be sure to balance risk-taking with maintaining financial security. For instance, consider keeping a solid emergency fund while investing in higher-risk opportunities or diversifying your portfolio to spread risk across different asset classes.

Ultimately, the goal is to take smart risks that align with your long-term financial objectives. By embracing the possibility of failure, you open yourself up to potentially greater rewards and invaluable learning experiences that can shape your financial future.

#4: Thoroughly Plan and Prepare

Just as a Misogi Challenge requires extensive preparation, achieving ambitious financial goals demands thorough planning. This preparation phase is crucial for success and can be broken down into three key areas.

First, invest time in research and education. Dive into books, podcasts, and reputable online resources about personal finance. Consider taking courses or attending workshops to enhance your financial literacy. The more you understand, the better equipped you’ll be to make informed decisions.

Second, build a strong support network. This might include a trusted financial advisor, CPA, or even financially savvy friends. Having a support system can provide valuable insights and keep you accountable.

Lastly, create contingency plans. While optimism is great, it’s wise to prepare for potential setbacks. By planning for various scenarios, you’ll be more resilient in the face of unexpected challenges.

Embracing a Misogi Challenge Mindset

Applying these Misogi Challenge principles to financial planning can truly transform your approach to money management. By pushing beyond perceived limits, setting audacious goals, embracing calculated risks, and preparing thoroughly, you can achieve financial milestones you once thought impossible.

Now it’s your turn to set your own financial Misogi challenge. What seemingly unreachable goal could revolutionize your financial future?

Remember, you don’t have to navigate this journey alone. Simplicity Wealth Management is here to provide personalized guidance and help you develop a comprehensive financial plan tailored to your ambitious goals. If you’re ready to take your financial planning to the next level, book your complimentary Simplicity Session, so we can start crafting your financial Misogi challenge together.

To dive deeper into the Misogi Challenge and get all the details on my unforgettable hike along the Laugavegur Trail, don’t miss this video!