11 Nov 4 surefire ways to take financial action in 2020
Anyone who has ever saved with new money to save more money can tell you how hard it is to stay on track for more than a few weeks. It’s hard to motivate yourself to take on extra work time whenever you just want to sit on the couch and watch the latest Netflix series.
It is important to set financial goals, but to be able to stick with them in the long run, you also need habits and systems to implement them. Implement these four strategies to truly commit to this year’s financial priorities:
1. Think small.
Setting a big savings goal is great, but it can be daunting and even daunting if progress is slower than you might expect. Break down each of your annual goals into smaller pieces and manageable next steps.
For example, if you want to repay a certain amount of debt, divide these numbers into monthly, weekly, or daily goals to make the annual amounts more manageable.
Remember: Tiny steps taken consistently over time allow for big changes that can transform your financial life.
2. Stay flexible.
One of the things that makes it so challenging to stick to your goals is the idea of constantly sacrificing to achieve them. But any sacrifice or habit you make can be shaped and changed at any time.
Try things out and set a time frame for each strategy. Then evaluate whether this strategy is really worth it.
For example, he tries to work every Saturday for a month to see if the extra income is worth the extra working day. If you have, you can stay. If not, flood the extra work. Give yourself permission to experiment and make changes as you make these changes.
3. Consider what the stakes are.
Behavioral psychologists say the pain of losing is greater than the joy of acquiring it. This means that the thought of not getting the things you want can be a stronger motivator than the goals themselves.
In addition to using your financial behavior as a way to achieve your lifestyle goals, you can also turn the frame around to rethink what’s at stake if you don’t change your money habits. For example, what does it look like five years from now if you don’t save the money you want to invest in your ideal future?
4. Celebrate your victory.
Find small opportunities to celebrate as you move forward to achieve your financial goals. This doesn’t mean you have to blow out all your money every time you reach a new savings threshold, but it does mean you have to take the time to realize how far you’ve come to stay motivated to continue ahead.