Financial Tip of the Day #10 - Turn Big Purchases Into Little Purchases

Today was a very busy day. I actually just ended work, and it's currently 11:10 pm, but I wanted to make a quick tip of the day post. 

The concept behind this title extends to many facets of life. Have you noticed that when you have something small to do you can generally get it done pretty quick and not think twice, but when it's something larger you often procrastinate? Our minds are designed to handle small tasks much more efficiently than large tasks. The human psychology is to conserve energy and handle small tasks while pushing off the large tasks to a later date - "That's a future me problem!"

Instead of succumbing to this trait however, we can turn this in our favor. Instead of looking at the big tasks we can break them down into smaller tasks. This concept works with my recent post about setting goals, which you can find at https://steemit.com/life/@irishfan686/financial-tip-of-the-day-6-today-s-my-birthday-so-let-s-talk-about-goals. These smaller tasks are then easier for us to manage, and before we know it we accomplish our larger task.

My favorite way to use this skill involves purchases. It's often daunting to look at a future large purchase and think "holy crap I have to save." Instead of trying to save $100 a day, we can break that into smaller every day purchases. Perhaps instead of buying that lunch today, pack your lunch and save $10. Maybe instead of buying that extra coffee, make it at home, or chug a glass of water. Soon enough you'll have enough money saved to make that big purchase!

My recommendation would be to figure out how much you need to save for your purchase, let's say $500. Then figure out how soon you want to make this purchase, let's say 30 days. Next, look at your regular purchases and see what could theoretically be cut out - that lunch, coffee, beer after work, etc. Lastly, calculate your daily amount you need to save, $16.67 in this case, and figure out what you need to cut back on. Then just make sure you hit your daily goal on a weekly basis and soon enough you'll be there!

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I hope that you found this post useful. If you have any questions, please comment below. My goal with this profile is to make frequent posts about personal finance, cryptocurrencies, investment, and wealth generation. I plan to not only make posts, but also youtube videos, and give away free excel workbooks to assist you in your personal finance goals. If this interests you, please let me know and follow my profile. Additionally, if you would like to reach out and ask any questions/request that I make a post on a topic, please reach out to me at [email protected].

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