Last year, I wanted to write a book.
It seemed like an impossible task.
Before I knew it, I finished the whole thing.
Small actions made all the difference and our finances work the same way.
For example, saving five bucks here and there doesnt feel like much.
Over time, that money adds up, but thats not even what matters.
Thats when your financial life really turns around.
Make Choices That Motivate You
When you save five bucks, you make thedecisionto save five bucks.
More than the money itself, that decision is key.
Neuroscience researcherAlex Corbstudies the link between happiness, control, and decision-making.
Nor do we usually have enough information to feel confident in the decision the world just too complex.
In simple terms, worrying too much about making the right decision can backfire and stress you out.
On the other hand, you feel empowered when you make a decision without worrying whether its the best.
Thats precisely why small actions pack such a punch.
If you save five bucks and it doesnt workwho cares?
Its just five bucks.
You dont have to make some groundbreaking, monumental decision.
Itsone small, casual choicethat cultivates a sense of control.
When you feel in control of your finances, youtend to make better long-term decisions.
Make the Choice Meaningful
Control also motivates you tokeep making progress.
He adds that the key is to tie the choice to something meaningful.
Make a chore into ameaningfuldecision and self-motivation will emerge.
These are relatively small tasks: listing something on eBay, updating your 401(k) form.
When you complete the task, though, youre engaged with your money and you facilitate change.
When the choice supports something meaningful to you, youre motivated to make long-term financial progress.
Hal Hershfield, a marketing professor at UCLA, studies this concept.
He actually came up with a visual scale to gauge how connected people feel with their future selves.
Voxexplained his research in a nutshell:
Hershfield has also confirmed this with brain imaging.
Small goals make long-term goals more present, which makes it easier to take action.
What once felt impossible now seems doable.
It sounds obvious, but in other words, nothing makes us want tokeep going quite like experiencing progress.
And small actions help facilitate that progress.
They can have a big impact on your finances because ofconcepts like control, progress, and motivation.
In fact, the wholeLifehacker Money Challengeis based on the idea of small wins for big progress.
Each month, you get a different challenge.
Its fun, sure, but the overall goal is to motivate you and make you feel in control.
Itsthe Goldilocks Effect: our tendency to feel motivated by tasks that are challenging but still doable.
Yes, small actions add up over time.
Illustration by Sam Woolley.
Photos bystock.tookapic.com,energepic.com,Sebastian Voortman.
