3 Ways Small Savings Goals Can Make a Big Difference
How many times have you read blog posts and articles that talk about making lots of small changes to the way you spend money? This is one of the simplest rules about budgeting, since you can make several small changes and they’ll add up to one big one. But does it work? Does it really enable you to make a difference to the way you save money?
Here are three ways these small goals can make a huge difference in the long run.
- They help you develop good habits.
It doesn’t matter whether you want to stop wasting money short term or save up a specific amount for the long term. The main thing is you should use these small adjustments to create good habits for spending and saving money.
For example, let’s say you buy a $2 coffee every day. If you make a pact to cut that out, you’d save $10 a week (assuming you only buy one Monday to Friday). This means you’d be able to put away $40 a month into a savings account – just from that one small change.
- They eliminate small money drains that can add up into one big one.
A two dollar coffee doesn’t sound like much. But we’ve seen how big it can be when you buy it five days a week. If you identify other potential money drains in the same way, you might be surprised how much it all adds up to. It doesn’t mean you should cut out everything, but it does show you it might be better to keep them to occasional weekly treats instead of spending money on them every day.
- They can help you develop positive thinking when it comes to saving larger sums of money for the future.
This is perhaps the biggest perk of all. If you want to save more money instead of wasting it, it pays to develop healthy saving habits early on. Tackling small savings goals will help you do this because you can enjoy quick results. For example, you’d get a far faster result if you wanted to save $20 a week instead of $100. Once you achieved your goal you’d feel good about it and be inspired to move on to the next stage – a bigger goal.
It’s easy to see how smaller savings goals and adjustments in your life could lead to bigger results than you might think. Starting small means your goal will be easier to reach – and that will make you feel good about what you would like to achieve in the future. Whether you want to cut out coffees and save $2 a day or tackle some bigger saving project, you’ll stand a better chance of getting the results you want if you have achieved smaller goals in the past.
Making big differences doesn’t have to be as hard as you think. If you consider the points made above, you’ll see this is right.