You may think major milestones are a bigger deal, but according to scientists, it’s minor milestones that could be the key to reaching any goal. Sure, big wins make you feel good, but they’re relatively rare. Small wins also make you feel good—and you can achieve them more often, propelling you toward larger goals.
This process is especially important when it comes to saving money. After all, thinking about a long-term goal—like saving for a house or retirement—can easily overwhelm us. Breaking a big goal down into smaller goals, like saving a little money today, makes it easier to take the first step.
Ready to take some small steps on your way to a successful financial future? We’ve compiled a list of 10 small wins to help you get the ball rolling toward those big wins.
Small Win: Save Whatever You Can
When you start looking for savings opportunities, you’ll likely stumble upon others. So look everywhere! Can you turn off some lights or turn the thermostat down? Cook a meal at home rather than eating out? Trim a dollar here and a few dollars there and soon you’ll be saving real money.
● Tip: Analyze all the bills you get—and every item on your credit card statements—and think about how you can lower or eliminate each charge.
Small Win: Avoid Overspending
Our brains can easily be triggered into buying extraneous things. So look for what might trigger that urge to spend: When you’re bored? On the weekends? When you get tempting email promos? Understanding those triggers is the first step toward sidestepping them.
● Tip: When you go to the grocery or clothing store, write down a list of the things you absolutely need, then leave the store with only those things.
Small Win: Buy Used or Repair What You Have
Sure, brand-new stuff can be nice to have, but is it necessary? In many cases, gently used items work just as well and might even look just as good, too. Consider buying used tools, musical instruments, small kitchen appliances and even computers. Or fix anything you’re able to, like a leaky pipe or a flat bicycle tire.
● Tip: Search YouTube for DIY repair videos of all sorts. A time investment of just a few minutes online could result in big financial savings.
Small Win: Set Up a Budget
Start this worthwhile exercise by figuring out your net income and subtracting your regular monthly expenses, then make a plan for whatever’s left over (then, of course, don’t spend more than that). One model to follow is the 50/20/30 rule: Spend up to 50% of your take-home pay on essentials, 20% on savings and paying off debt and 30% on things you want or enjoy.
● Tip: Track your spending each month and evaluate whether you stuck to your budget or not.
Small Win: Start an Emergency Fund
If the pandemic taught us anything, it was the importance of having an emergency fund—a stash of savings that covers three to six months of living expenses. Having that backup can make you feel more confident about weathering the next emergency that arises, even if it’s something less global like, say, your car breaking down. (You may also want to start a Sunny Day Fund, for when you want to make a big purchase.)
● Tip: You don’t have to save the whole amount all at once! Set aside small amounts, keep plugging away and celebrate wins—like when you reach $500 and $1,000.
Small Win: Pay Down Some Debt
High interest rates on debt can be a huge weight on finances, so try to lower those payments. Of course, don’t feel like you have to pay it all off right away! Start with the most expensive debt you have and when the next bill arrives, plan to pay more than the minimum balance. Then keep chipping away.
● Tip: Take advantage of credit card balance transfers to lower your interest rate, at least temporarily—then try to pay off as much of the debt as you can before the interest rate jumps.
Small Win: Automate Your Savings
It’s easy to say you’ll start saving... tomorrow. Automating your savings means you won’t have to risk procrastinating on making it happen. When you automate, the money is guaranteed to reach, for example, a high yield savings account, which earns interest and quickly grows to be worth more than you put into it.
● Tip: Ask the payroll department to split your paycheck so some goes to savings, and also increase the savings percentage on your 401(k).
Small Win: Get the Right Bank Account for Your Needs
Outside of basic checking and savings accounts, look into what other account types a bank offers, such as a CD or money market account. Learn the rules around them and figure out how you could take advantage of the higher interest rates those accounts offer.
● Tip: Poke around online and compare the interest rates and rules of different bank products.
Small Win: Save Windfalls
Not all of us will be lucky enough to get an out-of-the-blue windfall, but it happens. People often give money to their children before they die; the average inheritance in the United States is $177,000.
● Tip: If this happens to you, put it aside for a bit in a savings account and research how to make it work best, such as by paying down your debt, building up your emergency fund or even having some fun... just don’t squander it!
Small Win: Celebrate Each Win (but Don’t Lose Your Progress)
Hitting your goal—no matter how small—triggers a sense of pride and can give you motivation to continue. So take a moment to recognize your success and congratulate yourself. Your brain will release dopamine—a chemical messenger associated with pleasure—and you’ll be hooked on getting more by reaching the next small goal.
● Tip: Give yourself some leeway to enjoy the moment, like eating your favorite food or watching your favorite show.
Now Think Big Picture
You’ve realized some small wins—yes! Now, make these new practices a habit so they can propel you to longer-term success. Here’s how.
● Establish your long-term goals. Figure out what’s really important to you and set bigger goals to get there. Write them down and regularly measure your progress; perhaps it’s a running tally of the number of days you’ve stayed on track.
● Share your goals—and successes. Once you tell people what your goals are, you’re four times—four times!—more likely to reach them than if you keep your goal to yourself. Also, what will likely happen when you tell people that you’ve hit a goal, no matter how small? They’ll congratulate you, and that positive reinforcement does wonders for keeping you on the road to success.
● Talk to a financial professional. Money pros can help you strategize, advise you where to invest and help you think long-term. They can also help you minimize your tax exposure. When the time comes, they can advise you on the process of withdrawing money from retirement funds or other accounts.
Keep Your Eyes on the Prize
By focusing on small wins, you’ll have a lot of experience figuring out what does and doesn’t work, which will help provide key lessons in your financial journey. In other words, by looking back on your successes and failures, you’ll gain perspective and be less likely to make the same mistakes—or type of mistakes—again.
Always keep in mind what the ultimate goal is—whether that’s buying a new car or saving for retirement. It will inject a sense of purpose into all the decisions you make and actions you take. And it will give you the motivation to repeat the successes you’ve had and build great habits that will hopefully last a lifetime.
Rich Beattie is a former executive digital editor of Travel + Leisure and has written for outlets such as The New York Times, Popular Science, New York Magazine and SKI.