The best is the enemy of the good
Too often we hold on for perfect, but really good is good enough.
It’s nice to think we’ll revolutionise our financial lives in one fell swoop; that we’ll clear debt in a oner or go from £0 – £deposit in days …
But while we wait and hope and plot and plan for the best, we neglect to harness the power of good. The power of small.
Because reaching money goals comes via consistent, relentless micro actions. It’s not as sexy as a big old win, but it really does pay to sweat the small stuff …
Small stuff, for example …
Increase the interest rate on a £7,000 emergency fund by just 2% and you’ll gain £140 more in interest over the year. Is it perfect – no, but who sniffs at free money?
Switch a £2,000 credit card on a 0% balance transfer and you’ll save over £40 in interest each month. Is that enough to get out of debt – no, but it’s worth half a grand for the year.
From that to this: dialling back takeaway meals from four to two per month will save circa £250 in a year. Is it enough for a house – no, but it might just pay your car insurance.
You get the idea. Small changes add up and make a difference over time. To seize control of your financial life, the key is to simply take steps. Any steps, however small they seem.
A little homework
This week we challenge you to take some first steps. See how true these ring …
- Got a subscription you don’t use? Cancel it.
- Have you a regular transfer into your savings? Set it up.
- Do you write a meal plan and budget for it? Start.
- Have you pre-registered for the Money Means app? Sign up and let us support you.
If the above don’t compute then come up with your own that do.
The point is that no action needs to be the perfect action. The key is to take action. Dreaming of that one big moment when it’s all sorted is intoxicating, but it’s pie-in-the-sky versus small changes. Versus actions you can do now, and stick to each day.
So think small and stick with it. The results will trickle, then flow, then gush.
As Voltaire said, the best is the enemy of the good. So be good and tell us how you go.