Money Musings 💭 Small step by small step 🪜
As a recovering Type A person, I used to go after goals in an aggressive way.
An example: A few years ago, I got inspired to reorganize my apartment after watching the Home Edit series on Netflix.
I blocked off two weekends in a row on my calendar (including work time) to ‘Edit => Categorize => Contain => Label’ our entire apartment.
It was intense but I just wanted to get it done. 😂
I’ve since found a much better way.
Enter small steps… 🐾
Small steps are the MVP. Not only because they’re a lot less painful, but they often actually lead to better results.
Here’s why…
1️⃣ Small steps are manageable. We can carve out a little space and fit them into our lives. They meet us where we are. And that’s why we take them! Taking steps is a whole lot better than not taking steps, right?
2️⃣ We’re more likely to stick with it. If we bite off more than we can chew or our newfound commitment has us sacrificing other areas of our lives, we’re not very likely to keep it going. Creating a spending plan is great but the real magic and progress comes from keeping up with it. We need to continue taking steps.
3️⃣ It takes time to build new habits and skills. Gradually building new habits and skills makes it much more likely we’re going to remember and integrate that new information into our lives. Taking our finances step by step gives us that opportunity.
4️⃣ Plus, it’s more fun. There’s a lot more room for fun when we take small steps because it's less stressful and we’re more likely to see good results, which in turn ups our motivation. Win win win! 🎉
My love affair with small steps is one of the reasons this newsletter has a weekly money move. It’s a manageable step you can take each week to improve your financial well-being that won’t take a lot of your time.
It’s also why I give myself 21 days to build any new habit. If I do something pretty consistently for 3 weeks, it becomes more automatic and natural.
Ok, have I convinced you that small steps win? If you’re in, what’s the next small step you’re taking toward your own financial wellness?
Remember, small is relative. If there’s ever a step that feels daunting, don't hesitate to break it down into a size that feels manageable to you.
MONEY MOVE OF THE WEEK
GOAL SETTING SERIES: STEP #3 - MAKE SMART GOALS
You’ve listed out and prioritized your goals. What comes next? One of the biggest problems I see with goals is that they are very vague. Someone might say - “I’d like to save more money.” or “I’d like to travel more.” Without key details we are not setting ourselves up for success. Be specific!
Turning our goals into SMART goals makes it a lot more likely we’re going to achieve them AND gives us a path to get there. ✔️ Sounds good right?
SMART stands for:
Specific: The “who” and “what” of our goal. What are you out to achieve?
Measurable: How will you know when you achieved it? Typically this is the number / amount.
Attainable: Is the outcome in your control? Is it realistic? Sadly, winning the lottery is not in our control.
Relevant: Is it worthwhile? Is it something you are motivated to achieve and put the work in for?
Time-Bound: By when will you achieve it?
Here’s an example:
I want to save more money to travel becomes….
I will save $5,000 by January 2024 to take a vacation to Morocco by transferring $193 per paycheck to a travel fund.
Take a few minutes today to turn your top 1-3 goals into SMART goals. Having a clear path to your top goals is worth the work!
YOU GOTTA SEE THIS
YOUR 2023 GOALS.
A couple of weeks ago, I talked about the importance of goals and kicked off our goal setting money move series. 👏👏👏 Via this 4 part series I've been walking you through how to set and track your money goals, step by step.
I also asked you to share your top money goals for 2023. Why? Because I want to share relevant resources, cheer you on, answer questions and support you along the way. You’ve got this! 🥳
Here’s a recap of the Fiscal Femme community’s money goals.
#1 Debt pay down (30%) - includes credit cards, student loans, mortgage, consumer debt and home equities loans
#2 Saving (27%) - includes rainy-day fund, down payment, taking a sabbatical from work, saving for a wedding and a move to another state
#3 Investing (17%) - includes retirement and other investing
#4 Budgeting (15%) - includes intentional spending, tracking, and reducing emotional / impulse purchases
Other goals: Estate planning, giving, account organization and growing side hustle income
Also I asked you to sum up your ideal financial life in one word and here are the most frequently repeated words you you shared:
Free / Freedom (17%)
Secure / Security (17%)
Abundant (8%)
Carefree / Worry-free (8%)
Comfortable (8%)
Intentional (8%)