Updated: Feb 23
What are your financial goals for 2022? In this episode of Money Minute, we talk about using the power of habit + automation to set you on a collision course with your dreams. My Finance Agent managing director Chris Jonson explains that, if goals are the target, habits are the arrows.
Goals mean growth
With 2022 just a few days away, a lot of people are thinking about New Year resolutions. Goals are a great way to embrace a growth mindset. With something to strive for, goals also make life more exciting and adventurous.
But it's also true that goals can be demotivating. There's nothing more frustrating than feeling that for every step forward, you take another step back.
That’s why this video is a reminder that goals alone are not enough. Think of your goals like a dart board. The goals represent the target, but it’s habits that represent the darts.
What is a habit?
A habit is a behaviour you repeat to the point where you find it hard to quit. This is why we have to choose our habits carefully!
Just as bad habits can set you on the wrong course, the power of positive habits is that they can propel you towards your goals.
Some types of goals (think: health and fitness) require a lot of willpower. The good news with financial goals is that you can use automation to program them on 'set and forget.' This is how you put your habits ─ and goals ─ on autopilot.
"Having more financial options doesn’t guarantee that all your dreams will come true, but it can open up new pathways and possibilities."
Chris Jonson, My Finance Agent
How to automate your financial goals
For example, say your goal is to pay off your credit card. Don’t wait for the monthly bill to arrive. Set up a weekly, automatic payment of $10 or $20, or whatever amount you can afford.
This might seem like a small amount in the beginning, but the power of habits is that they snowball.
Lenders look for good financial habits
When it comes to financial habits, it's important to understand that lenders look for them ─ good and bad.
Good habits can make you more creditworthy in lenders’ eyes. This can open up more products and options for you in the future.
Having more financial options doesn’t guarantee that all your dreams will come true, but it can open up new pathways and possibilities which, as we said at the beginning, is what makes life exciting and adventurous!