WHY BITE-SIZED GOALS ARE BEST

The worst thing about this time of the year is that everyone is working out ways they can completely overhaul themselves.

They want to lose weight. Or get fit. Or renovate the house. Or become better parents. But so often our goals are just too big, which is why we throw ourselves into a new regime only to drop it a month later.

A few years ago I learned to ‘chunk’ my goals. This meant doing one or two small things to make a difference. When they were accomplished, I added a couple more.

If you’re nervous about overhauling your finances, which I was when my circumstances changed a few years ago, it’s best to start small.

Look at your spending in one area, for instance, how many cups of coffee you buy a day or how much you spend at the hairdresser. Workshop ways to cut your spending, make your coffee at home or choose a lower maintenance hairstyle.

The key to staying motivated is not just making the change but keeping a record of what you are saving. It’s exciting to have agency over your own money rather than feel you’re a victim to it.

Take this approach to building wealth. You don’t need to wait until you’ve saved an extra $5000 to salary-sacrifice into superannuation. Every $100 counts. Likewise, with your holiday fund. As the old adage goes: ‘Take care of the pennies and the pounds will take care of themselves.’

When it comes to buying items I ask myself whether it’s something I need or something I want. If it’s something I simply want and I still buy it anyway, I make sure it’s going to make me happy.

Finally, look at yourself as your greatest resource. Could you do some work on the side for a friend? Small changes may only bring about small rewards but they set in motion shifts in behaviour which, added up, are transformational.