How To Make Big Goals Into Small Habits You Can Achieve

Dear fellow financial freedom seeker, 

The tax year ended in the UK about 2 weeks ago which means we have a whole year to meet different allowances that will minimise our taxes and maximise our personal finances. 

Your best change of meeting these allowances is saving little but often towards them. This is where breaking them down helps. 

The ISA allowance is £20,000. That’s £1,666.67 put into an ISA (or several ISAs) each month. 

The Pension allowance is £60,000. That’s £5,000 put into your pension each month (including employer contributions) 

The Junior ISA allowance is £9,000. That’s £750 put into your child's Junior ISA each month. 

The gift allowance is £3,000. That’s £250 given to your child each month that they won’t then need to pay inheritance tax on. 

These are just a few allowances and I appreciate when added together that’s a large sum of money to set aside. 

But the point I am trying to make is that if you take a big goal and break it down into a monthly goal, the possibility of achieving it becomes easier. 

Your One Simple Step this week is to 

Set your full year goals for just one thing - be it ISA or pension or something else - and break it down into a more achievable monthly goal

Once you have a monthly goal, keep note of it and check you’ve met it each month. 

If it revolves around saving or investing then you can automate transfers for a set amount from your current account to your savings or investment account each month so you can meet the goal without even thinking about it. 

Spoiler alert: the best way to make sure you achieve this is to maintain a monthly budget for the full year that you check against each month. I am running a free masterclass on budgeting. You can sign up to join it here. 

Til next week, 

Pernia | Your Finance Travel Buddy