commitment contracts

Commitment contracts are agreements that help individuals stick to their goals by involving a personal stake. When a person creates a commitment contract, they often pledge money or resources that they will lose if they fail to meet their objectives. This creates a financial incentive to stay on track, as losing money can be a strong motivator. Typically, these contracts can also involve a friend or organization that holds the commitment, adding accountability. Overall, commitment contracts harness the principle of penalties to foster discipline and encourage positive behavior.