Part of the strategy of money hacks is to ensure that you feel successful. For this, it is best to set small and easy-to-achieve goals for the immediate future. For example, you might set a food budget for just a week (or even a day) at a time in order to emphasize repeated small successes. On savings, it is useful to target small goals such as just $25 — or even $5 — a week. The important thing is just to get started saving on a regular basis.
Start by saving $25 (or even just $5) a week
The Social Security Administration estimates that saving $100 a month at the age of 25 would reach $160,000 by the time of retirement at age 65 – mainly due to the Einstein power of compounding. By narrowly bracketing your goals, you change your reference points. In so doing, you reframe your objective and reinforce your self-control.
Setting intermediate goals also takes advantage of the theory of goal gradients. Most people who start to get close to their goals (and even horses returning to the barn at the end of day) put extra effort into getting to the finish line. It feels goal to succeed – and then you are ready for the next challenge. Celebrate each success as you achieve them. Winning can be addictive (in the best possible way.)