Focus on “quick Wins” to Stay Motivated to Meet Your Financial Goals
Money is math, but personal finance is directly related to thinking. Chances are, if you want to stick to a financial goal, you will have to deal with your emotions at some point. Stay motivated by focusing on “quick wins”.
The debt snowball is a great example of how the “quick wins” concept works. Despite the math, the snowball method is the most effective way to get out of debt . By using this method, you pay your smallest debts first, although on paper it makes sense to pay the debts with the highest interest. The snowball works thanks to quick wins: you see your progress faster, so in the long run you have a better chance of sticking to your plan.
Think about this concept when it comes to other financial goals. For example, Certified Financial Planner Tom Gilmore tells LearnVest that he works well with emergency funds:
When it comes to applying this method to emergency funds, I usually advise people to save three to nine months of home wages, but I recommend celebrating when you hit your monthly milestone, even if it’s just indulging in lunch out. … This will help you focus on achieving your goal after two months.
Best of all, the quick win strategy can be used for more than just huge goals. You can set even smaller goals, such as successfully completing a “zero dollar day ,” when you decide to spend 24 hours without spending a penny. Completing these mini-milestones can give you a strong sense of progress, which can help motivate you to take on – and achieve – even bigger goals.
Everyone is different, and if you can easily separate your thinking from math, other methods may work better for you. But for the rest of us, quick wins can help us achieve our long-term financial goals. Read the rest of LearnVest’s post at the link below.
60 Seconds of CFP Motivation: Winning Fast to Achieve Your Cash Goals | LearnVest