A couple of days ago, I was talking about failure, and how it affects people. Some will set the bar too high, then fail and give up. I don’t really mind failure, I’ve had my fair share of it, and also my fair share of success. Why? Because when I failed, I didn’t give up. I kept going.
Let’s say you go on a diet, for days you eat very healthy and in small portions, then you go out, order a big steak and feel bad about it the next day. Don’t. What you have done all those days counts too. And the steak may set you back a little, though it is surely not a reason to give up on the diet.
It is the same with your finances. Set a goal. You want to save a down-payment for a house, a car, start an emergency fund or set money aside for a holiday? Quantify your goal and set a reasonable time line.
If you usually save $20 a month, you will probably have a hard time saving $1500 a month, though if you are a high earner and spend a lot on shoes and going out, you may achieve it.
Let’s say you are making a normal salary and saving $20 at the moment. Try to save $50. Brown bag your lunch once a week and throw the $10 you would have spent eating out at your saving plan. Here you are, in 3 weeks your goal is met. You even have a free pass on the fourth week, in case your coworkers want to go out and you can’t say no. Look for cheaper insurance quotes and switch provider, saving $100 a year on your home insurance contract helps you meet two weeks worth of goal!
Once you master that saving target, you can move to a higher level, and set a goal of $100. There are a lots of saving tips that can get you there. You could also ask for a raise at work and maintain your actual lifestyle.
The thing is if you move progressively, you will grow progressively. No one asks a first time runner to run a marathon. It takes time, effort and dedication. You need to start small and then grow little by little, raising your goals as you go.
Grayson @ Debt Roundup says
I think failure teaches us valuable lessons that we would otherwise not learn. And you are correct, every little bit counts when we are working toward a goal.
Hey Pauline! I totally agree! It takes time and practice to learn how to do anything well, that includes managing your personal finances. We were saving 40% of our net income a few years ago (due to already good income), but over time we were able to increase that to 60%! It didn’t happen all at once, we made many small changes and slowly built it up bit by bit.
Pauline P says
Very impressive! I did the same, reduced expenses until it was tough, then made extra income to invest and reach FI early.