You may have once set yourself the goal of getting out of debt.
This is a vital first step if you want to build future wealth, but it is not an easy one.
It normally means cutting down the spending at home, and focusing more on settling your debts as a priority.
If you have entered debt review, then you have already made excellent progress towards this goal.
But there is a danger. You see, paying off debt can take time and like many long term goals, we can easily lose motivation during the process. It can take a year, 2 years or even 5 years.
This is why it is good to track your progress. It helps you stay focused.
‘it is good to track your progress.’
But even if you have been tracking your progress, it might start feel like it is going very slowly. This is where the right mindset is vital.
You must realise that you are making progress.
Firstly, if you had not set that goal, if you had not started to do something about it, then your debt would be even bigger right now.
Think back to how fast your debt was growing in the past. Maybe it was growing by 10% or 20% a year, or more.
Instead, because you are doing something about it, your debt has not just stayed the same size, it has actually shrunk.
It may have shrunk by 20% (if you are planning to pay it off over 5 years).
Think back to how quickly your debt was growing or how you were only ever paying off the interest, and were basically stuck in debt.
Now, you are making progress, your debt is shrinking, well done!
And this principle can apply to all our goals.
If you decided to go for a jog every day, you will not turn into a star athlete over night but… if you were gaining 5Kgs every year for the last few years…you may have stopped that from happening this year – Progress
Maybe we even start to lose a few centimetres – Progress.
Tracking your progress can help you stay motivated, and keep your goals top of mind.