Setting goals and actually achieving them can be difficult. Often, if we don’t achieve our goals, we feel despondent and feel like we have failed in our attempts. But the truth be told, sometimes those goals are just too vast to accomplish all at once. Enter micro-goals. The best way to set goals for yourself that are easy to achieve. Smaller goals that are attainable are easier to reach than all-encompassing major goals. And with each goal met comes a feeling of accomplishment that inspires you to carry on.
Here are some tips for setting micro-goals for financial wellbeing. Want to get out of debt or save for something substantial? Start small and build up from there.
Laying A Solid Financial Foundation
Before you can begin carving out your path on the way to financial wellbeing, you need to take a snapshot of your current financial status. Draw up a chart of your income and expenses to see where everything goes. Make sure that you account for every expense, including bank charges and interest charged. Once you can see where all your money is going, it’s easier to make decisions on how to manage it better.
Banish Small, Unnecessary Expenses
With your financial snapshot, you can see how much that morning cappuccino is costing you over the entire month. Make coffee at home, buy cappuccino sachets, or buy a cappuccino as a once-off treat every now and then. Once you’re aware of the small, unnecessary expenses, it is so much easier to stop your money going towards them.
Being fully conscious of where your money is spent will show you where you can save or stop overspending.
Devise A Payment Plan For Outstanding Debt
If you are already on top of your debt repayments, that’s excellent. But perhaps you can pay it off sooner? The first course of action should always be to get rid of your outstanding debt as soon as possible.
Paying the minimum balance required every month is a given. So if you’re not doing that yet, then it’s time to start doing so. If you are already paying the minimum balance due, then look at the amounts that are owing and pay off the smaller balance first. Even if it’s R50 extra every month until the balance has been cleared. By paying that smaller balance, you will soon be rid of one item of debt, which will free up money for the rest.
Small, quick wins are incredibly satisfying and will motivate you to keep going.
Invest A Percentage Of Your Income
If you’re already on top of your debt and want to start saving for the long-term, there are many investment accounts that don’t require you to spend large sums of money. Start by looking at what your bank offers you, as any investment account from your bank can be linked to your current or savings account, which makes investing or transferring money incredibly easy.
Opt for an investment account that requires a small initial investment to open it up, and also has no set requirements on what you need to deposit every month. When you get paid every month, take a small percentage of that income and transfer it to your investment account before you do anything else. Once it is out of sight, it is out of mind, and it can grow over time to become a contribution to your next car, a deposit on a house or a trip around the world.
Small amounts won’t be missed. But over time, these small amounts become large investments.