Do you take time to set financial goals and then celebrate their achievement, even when they’re relatively modest? If not, then maybe you should start doing so.
Despite solid growth over the past two years, many Americans find the current economy challenging. In a recent survey, about three out of every 10 people indicated they were struggling financially, or just getting by. The financial statistics bear this out. The average American household has accumulated $16,000 in credit card debt, and many people have difficulty even imagining being debt-free.
Facing challenges like these, it’s no surprise that financial issues are the top stressor weighing on Americans’ well-being. It doesn’t have to be that way, though. One of the best methods to address all the stress that money matters put on you is to break large goals down into smaller ones, and note when you complete them. Let’s look at why little victories are so important along the road to financial success.
Visualize the Journey
There’s an old, wise saying:
How do you eat an elephant? One bite at a time.
While it can apply to many things in life, it’s especially useful when viewing financial goals. Most financial objectives we set for ourselves – paying off debts, purchasing a home, or saving for retirement – can take a very long time to achieve. Sometimes, the goal itself can seem so large and intimidating that it can be difficult to visualize a path to achieving it at all. Break it down!
Taking a large objective and breaking it down into a series of smaller goals can help keep you focused and on track for the long haul. For example, it may be hard to imagine saving $500,000 for retirement when you’re 25. However, setting a financial goal of having $45,000 invested by 30 may be easier for to visualize. In addition, with a set of similar milestones set along a timeline, you can often orient yourself better toward achieve larger goals. Just cut that elephant up into smaller pieces!
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