Financial Literacy Month – Tip #26

Set Bite-size Goals

When working on financial goals (actually, all goals) be sure to include bite-size goals. Either sprinkle in small goals that can be achieved in a short period of time or break down larger goals into bite-size portions. 

For example, if your goal is to purchase a home in two years and save money for a down payment. Determine the amount needed for the down payment, divide the down payment amount by 24 months and break the goal into 24 monthly bite-size goals. 

Or, if your goal is to pay down debt by $5,000 in one year, divide the goal by 12 and pay $417 per month to achieve the goal. This method can be used for all goals…. financial, personal, professional or health/fitness.

Big goals can be overwhelming. Breaking goals into smaller chunks builds momentum, allows you to track progress monthly and keeps you motivated to achieve the big picture goal(s). 

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