THINK SMALL, SERIOUSLY.
There’s not many finance professionals out there that tell you to “think small”, but on this occasion, I will! For good reason though – it has taken many ‘micro’ decisions to get where you are today in life and in your business.
Thousands of decisions, all placing you in the direction you are now headed.
A journey of tiny steps that, upon reflection, looks like one large leap. But in reality, it was probably one micro-decision that started you on your business journey.
I’m sure you’re wondering how this matters in regards to money? Well, the same principle applies. It will take a series of different micro-decisions to change your financial path – whether it’s getting the basics in place, adopting new processes or changing the way you feel about money. Inertia to movement. A shift in direction. Many thousands of micro-decisions in your journey to take you in a new financial direction.
What seems like a small decision can have a big effect. Here is a simple example for you, when a teenager starts working there are decisions to be made:
- What’s the best bank account to have?
- Where will my super payments go?
- Save, spend or a bit of both?
- Eat out with my mates or eat at home?
- KFC or Subway?
At each point, whether it’s done consciously or not, a decision is made. Each decision then becomes habitual – going shopping the day after pay day, eating out on a Friday night, buying a flavoured milk when putting fuel in the car. The same works for your business.
See all these micro-decisions building up? All these habits seem so small on their own. But add them together and the whole pay packet will be gone, quick fast!
AVOID THE HOLIDAY HANGOVER
We’ve all walked past a travel agent and seen alluring photos of exotic destinations like Thailand. Golden beaches, crystal blue water and green jungle. You think, yep, I’m going there on my next holiday (micro-decision #1).
Here comes the next micro-decision. How are you going to pay for it? Credit, loan or savings? Or better yet, Lotto? Your choice will impact your financial direction from here on in. Let’s say micro-decision #2 is to open a separate bank account and call it Thailand. But it’s the third micro-decision might be the smartest decision yet – you move some of your pay into the new each pay day *before* spending anything else.
Can you see how much of an impact these micro-decisions make?
One decision after the other leading in a particular direction.
And the numbers are simple:
- $5 saved each week = $260 saved over a year
- $25 saved each week = $1300 saved over a year
- $50 saved each week = $2600 saved over a year
So, take the time to reflect on where your micro-decisions are taking you. It could make all the difference to your finances!