Imagine this, you have just signed up for your first full marathon. 42 kilometers. 26.21 miles. You are excited, energized and ready to go. You head out for your first training session and to your dismay, you HATE it! What feels like an hour has only been 2 minutes of running. You are out of breath, sweating and red-faced, when a terrifying thought enters your mind, how will you ever run the full marathon distance? And so, like many aspiring runners before you, you give up.
Big lofty goals can feel overwhelming and unachievable, particularly at the beginning. It is easy to quit at this point, when a goal feels greatly out of your reach. Like the running analogy, the same logic applies to getting started with financial planning and achieving financial goals. It is not uncommon to set big goals for our futures when it comes to finances; buy a house, have $1 million saved for retirement etc. While these goals are important and key to keeping us focused on our futures, when they seem too difficult to achieve, we are more likely to quit, before we even begin.
That’s where tiny habits come in handy…
What are tiny habits?
Tiny habits, first popularised by BJ Fogg, in his book of the same name, involve breaking down big goals into smaller more achievable actions that can lead to big wins.
Research has shown time and time again that we are more likely to reach our goals when they are broken down into smaller, more digestible actions. By integrating tiny habits, like going for a 10-minute run once a week, or saving $100 a month, into your routine, you can build momentum for bigger goals, set yourself up for success and improve the likelihood of hitting your end target.
How does Moneythor help build tiny habits?
Whether saving for a house deposit, a holiday or birthday gift, the Moneythor solution offers a range of savings goal features that can help users form tiny habits that help them to hit their big financial goal overtime.
Round ups are an effective way for reluctant savers to get started on their savings goals. The Moneythor engine has the ability to round up every transaction to the nearest dollar and deposit the outstanding amount into a savings account or pot of the customers’ choice. While the amount saved varies each time, it’s a hands-free approach that helps to get the saving process started.
If This, Then That (IFTTT)
For those customers who like to play by their own rules and build their own perosnalised habits, if this then that-style features are the answer. Allowing customers to set up rules that trigger based on their actions keeps them accountable and dedicated to hitting their goals. What this means in practice is that a user could set up an IFTTT rule that if they spend over $100 on restaurants a month, $15 will automatically go into their saving pot or account.
Goal Progress notifications
Repetition is the basis for the formation of all habits. Being reminded often of how you are doing and how close (or far) you are to a goal can keep momentum going and improve the chances of staying on track. The Moneythor engine can power progress notifications based on time, amount saved, monthly spending and more.
Overtime these tiny habits will become a part of normal daily routine and eventually lead a customer to successfully achieving their goal. If you want to find out more about how Moneythor is helping to change customer’s behaviour for the better, reach out to us below.