Learn To Save Small - 3 minute thought

Budgeting is difficult.

As noted in Chapter One of my book, Behaviour Before Math, the art of personal finance is a skill. It takes time and effort to learn how to effectively manage our finances and develop sound money management system that will allow us to be as successful as we want to be deep down inside. Like any skill, you must start small and work your way up to a intermediate and/or mastery level.

Society, however, often fails to remember this. And when you seek advice on how to improve your situation it is often recommended how you should take drastic action to change your life. Quit smoking, stop eating out, or even sell of your stuff. These all sound great in theory but we all know they are much harder said than done.

Here's a trick that I have found to be incredibly helpful in getting people to start saving.

Start saving small

Start saving with what seems like a ridiculously small number. You can save $1, $2, $5, $10, $50 with a frequency of each week, each pay day, each month. The amount and the frequency is largely irrelevant.

Start with an amount of money that you know without a doubt you will be able to put aside and not touch. At first, it will seem boring, and slow - that is kind of the point. You want to be able to not think about it at all. After 4-5 repetitions of saving the money, increase the amount slightly and keep going.

Give it a shot and let me know how it works out for you!