Achieve Your Financial Goals With the Gas-or-Brake Cash Decision Test
Whether it’s saving for a luxury vacation or paying off debt, most of us have financial goals. Setting these goals is fairly straightforward; seeing them through is a little more difficult. To help you reach your financial goals, apply the gas-or-brake test to your day-to-day spending decisions.
LearnVest describes this method as recommended by the author Jacob Lund Fisker. When faced with a monetary decision, pretend you are driving and your goal is your destination. Then ask yourself: Will this monetary solution bring you closer to your goal (pressing the gas pedal) or will it stop you for a moment (pressing the brakes)?
It’s a metaphor for the simple question of whether a solution will support your overall financial goal. And I don’t think this is to say that you should never slow down. For example, if I want to go out to dinner, yes, it takes away my overall goal of achieving financial independence. What’s more important (and realistic) than never rejoicing at the beggars is knowing your spending, budgeting it, and keeping it on track.
Fisker’s method is very simple, but I like it for this reason. It forces you to stop and think about how your day-to-day decisions might affect the big picture. It is also helpful to link abstract, future goals to present goals that seem more concrete. Check out the full post at the link below.
7 Simple 30 Second Habits To Boost Your Career And Finances | LearnVest