2. Build Measurable Goals
Measurable goals are easy to track because they’re specific to start with. When your goals are measurable, you can make checkpoints along the way that prove you’re making progress. For example, if you’re hoping to save $8,000 within a year, you can set a midway target of at least $4,000 after 6 months. You can even set a daily target. Since there are 365 days in a year, if you save just $22 for all 365 days, then you’ll end up with $8,030!
Ask Yourself: Is there a straightforward way to measure my progress towards achieving this goal?
Matching your checkpoints to your pay cheque cycle can make saving even easier by putting the hard work on auto-pilot. However you do it, having a tangible number to work with will make measuring your success easy and maybe even fun. You’ll always have a clear idea of how you’re faring and if you need to make any adjustments along the way.
3. Motivate Yourself with Attainable, Action-Oriented Goals
Now that your financial goals are specific, you need to kick your plan into action. For example, let’s say your goal is to save $100 every month to either pay down your credit card debt or put towards a summer holiday fund. Where will you get the funds to pay off $100 in credit card debt, or where will you find that $100 in cash for your summer holiday? Will you keep accumulating the money in a savings account or pay it towards your debt right away?
Ask Yourself: Is my goal attainable? Is my action plan to reach it reasonable?
Only you can decide if your financial goal is attainable or not and chart out the actions you need to take to achieve it. Maybe saving that $100 every month is possible if you pack your lunch 4 days a week, stick to a smaller entertainment budget, or tuck away your credit cards for the year to avoid unnecessary spending. If you’re having trouble figuring out an attainable goal for yourself, scale it to your situation. So instead of saving $100 a month, you could try spending 50% less on eating out or another expense. Think of any potential roadblocks that could throw you off course and prepare backup plans just in case.
How a Family of 4 Can Save $70 Every Week