One of the most frustrating things about personal finance is that things often move pretty slowly. Maybe you’ve analyzed your spending, made some cuts or changes, and you’re now at a point where you are actually spending less than you earn. It took some work, but now instead of having a negative cash flow and increasing your debt load, you’re bringing in more than you spend and paying that debt off. Depending on how much debt you had, though, maybe you only have an extra $100 a month to pay on that debt (beyond the minimum payments).
Frustration Over Slow Progress
Over a couple months, you track your debt total and see that it is going down, but pretty slowly. This is where it gets frustrating and a lot of people give up and go back to their old ways. If they don’t see significant progress right away, it doesn’t seem worth it to some people.
Slow Progress Is Still Progress
Whatever you do, don’t give up! You’re going to experience slow periods and even an occasional setback along the way. This is to be expected. What you have to do is stay on the path to financial stability. Keep at it, even after the setbacks, because even if you’re only able to pay $20 beyond the minimum payments, that is still progress. The Grand Canyon took thousands, millions, of years to form. Sooner or later you’re going to get to the point where you pay off a debt in full. Then you’ll be able to apply the money you had been paying on that to one of your other debts. By treating your job as an investment, sooner or later you’re going to get a raise or promotion at work. Then you’ll have a little more income to put towards those debts. These things take time, but they’re worth it in the end.
Another piece of advice: Realize that you aren’t on this journey alone. There are many others in similar situations, trying to achieve the same thing.
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Modest Money
May 24, 2012 at 1:18 pm (UTC -4) Link to this comment
Yes financial progress sure does take a long time. For some people I think some shorter term goals would be very beneficial. For example, when paying off debt, you could have a goal of paying off a certain amount in a few months time. Or you could aim to add a certain amount to your retirement savings. It may not affect the overall total much, but it will still give you a feeling of satisfaction and provide motivation to keep pushing.
Justin
May 24, 2012 at 9:23 pm (UTC -4) Link to this comment
You’re right on the money. Splitting up a large goal into a series of mini-goals definitely makes it more manageable.
Katie
May 24, 2012 at 9:16 pm (UTC -4) Link to this comment
I agree with Jeremy.Making small goals makes the progress seem so much more exciting. It can take a long time to pay off debt or save enough money for an emergency fund. For me making weekly and monthly goals keeps me more motivated.
Justin
May 24, 2012 at 9:26 pm (UTC -4) Link to this comment
Katie, good ideas. Do you keep track of your progress in a software program or spreadsheet? Or maybe a more “fun” way like a picture of a thermometer that you fill in more and more? Just getting an idea of what some of everyone else’s methods are.
MyMoneyDesign
May 25, 2012 at 10:08 am (UTC -4) Link to this comment
Keep your chin up! You may feel as though you’re moving a mountain stone by stone, but at least your’re doing something! Investments are also frustrating because they can move backwards from what you expect! But over +10 years, you really start to realize you were on the right path as long as you stay the course!