Money goals. You set them, you start strong… and then somewhere along the way, things fall apart. Suddenly, you’re back where you started, wondering why it’s so hard to figure out how to consistently spend less and save more.
If you’re tired of setting financial goals and never reaching them — this is for you.
Here’s the truth: It’s not about willpower. It’s not about spreadsheets. And, no, thank goodness, you don’t have to love math or numbers. You just need a better system – one that actually works with real life.
This method changed everything for us, and I promise, it’s simple.
Why Most People Get Stuck and Don’t Reach Money Goals
Let’s start here: most people focus way too much on what already happened — the overspending, the impulse buys, the $300 coffee table from that “can’t-miss” sale. (By the way, you found out about the sale because you opened that sales email. Unsubscribe from Wayfair, right now, before you forget.)
Economists and business experts call these lagging indicators. They’re just a fancy way of saying, “stuff that’s already done.” Even though you can’t go back and change it, most of us obsess over these numbers anyway.
Worse? Sometimes the numbers you’re looking at weren’t even in your control. An example is the 50% electric supply rate hike we, personally, weathered over the summer. We could do absolutely nothing about what they charged us per kWh. But, keep reading to find out about the most important thing we could change – our habits.
The Shift That Made All the Difference in Our Money Goals
When we finally stopped stressing about past numbers and started paying attention to what we could control, everything changed.
Instead of focusing on what already happened, we started tracking leading indicators, which are small, doable, repeatable actions that move you toward your goal.
Let me give you an example.
We saw our energy bill creeping up (thanks, utility company). So instead of just complaining or panicking, we asked ourselves, “What can we do this week to lower that bill?”
And here’s what we came up with:
- Created a simple energy diary to track which appliances used the most power
- Planned ahead with batch cooking (and we used appliances which cost the least to run)
- Checked our online account weekly to see patterns in usage
Small shifts. Nothing fancy. But they gave us traction and helped us feel in control again.
Keep Money Goals Ridiculously Simple: The “Big 3”
Forget trying to overhaul your entire budget in one weekend or cutting your grocery bills by 50% in one month. (Please don’t.)
Instead, focus on just three small goals per week. We call them the Big 3. These are micro-changes you commit to for seven days. That’s it.
Here’s what that might look like:
- Pack your lunch every day this week.
- Hang your clothes on the line instead of using the dryer.
- Write down every time you use a high-energy appliance.
You’ll be amazed at how much momentum builds when you stop overcomplicating things.
Stop Tracking Everything!
Here’s another place folks get stuck: they try to track every teeny tiny habit. It’s way too much. Don’t overly complicate things, especially if you are staring at numbers which aren’t moving the needle. I call this being stuck in an “endless data loop”. You look at figures and try endlessly to determine their value, when, in reality, they have little.
It makes you feel better, because it looks productive. You appear to be actively working on cutting expenses or saving more money. In reality, although you may look busy, you never get to the point of determining which of your habits are making a difference.
For instance, we didn’t track every light bulb we turned on. We only wrote down the energy hogs — like the electric wall oven or microwave — the stuff that instantly or dramatically impacted the bill. That way we knew where to focus, without drowning in too much unrelated data.
Focus on Just 3 Money Goals at a Time
We also set three main financial goals each month. It gives us enough to focus on, without being overwhelmed. After we make progress on those goals, we pick three new ones.
We use this simple, 3-step formula that we call our PIE Method.
- Plan monthly goals, which are broken down into three simple weekly habits (called your “Big 3”).
- Implement and track your progress. Are you following through with your intentions?
- Evaluate the results. Did those habits get you closer to your monthly budget goals?
Rinse and repeat every 30 days.
That’s our entire PIE (Plan, Implement, Evaluate) method in a nutshell – and it works!
Your Turn:
What’s one small habit you could track this week that might actually move the needle on your money goals? Drop it in the comments so we can cheer you on.
Make my own coffee at home instead of buying it from a fast food place. Same with lunches.
Great habits. Saves you a lot of money!