Ever set a financial goal, only to struggle with sticking to it? You’re not alone. Even the most motivated individuals find it challenging to stay on track. But what if a simple psychological trick could help you follow through? Discover how a ‘when-then’ plan can make a real difference in achieving your money goals.

 

Today, I’m thrilled to dive into an intriguing concept from psychology that has the power to reshape how we tackle our financial goals.
This strategy, researched by Dr.Peter Gollwitzer, a psychology professor and expert on “implementation intentions”, offers a practical way to boost our follow-through on important financial actions.
Dr.Gollwitzer’s research reveals that setting a specific trigger—an action cue or a “when-then” plan—dramatically increases our likelihood of sticking to our goals. It’s a simple approach that makes a profound difference: “When X happens, then I will do Y.”
Consider these examples:
Saving More: “When I receive my paycheck, then I will transfer 10% into my savings account.”
Reducing Spending: “When I go out to lunch, then I’ll choose a more affordable option and invest the difference.”
These small “when-then” plans are more than habits; they’re the building blocks of lasting financial wellness. Let’s explore how to apply these plans to key areas of your finances for consistent, positive impact.

The Power of Action: Start Small to Grow Big
In a world where financial goals can often feel overwhelming—saving for a home, buying a car, building an emergency fund, or preparing for retirement—focusing on smaller, manageable actions can make all the difference.
After all, breaking big goals into tiny steps keeps us moving forward without feeling discouraged by the scale of our ambitions.
When it comes to our financial journey, starting small might look like setting aside just a few dollars each week or choosing one spending habit to adjust. These small actions might not feel significant at first, but they compound over time. You see, each positive step builds momentum, reinforces new habits, and provides the confidence to take on larger financial challenges.
When we pair these steps with a “when-then” mindset, these micro-actions become stepping stones to solidify healthy financial behaviors that support our larger goals.

Quick “When-Then” Ideas to Jumpstart Your Financial Goals
Try using “when-then” plans in these areas to get started:
1. Savings Goal: When you check your account each month, then move any extra funds into a high-yield savings account.

2. Budgeting: When you review your budget, then find one small item to reduce or reallocate.

3. Investing: When you read financial news, then take a moment to expand your knowledge or review your portfolio.

Making Implementation Intentions Work for You
Imagine the impact if we applied “when-then” plans to each area of our finances—from saving and budgeting to investing and beyond. These tailored triggers keep us on course, fostering the habits that build financial resilience.
So why not start today? Choose one area of your financial life, set your “when-then” plan, and watch how a single intention can transform your journey to financial well-being.

As Ruth Bader Ginsburg once said,“Success is the sum of small efforts, repeated day in and day out.”

Let’s set the intention to finish 2024 strong and start the new year with purpose and momentum!

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This article was written by our partner coach, Anna Orenstein-Cardona, founder of Wear Your Money Crown®, a dynamic, woman-owned financial education and coaching firm that is passionately dedicated to bridging the financial inequality gap and transforming lives through financial literacy. Whether you are an individual looking to build financial confidence and generational wealth, or an organization or school focused on promoting financial wellness, Anna is dedicated to supporting your goals and aspirations.

You can contact her via info@wearyourmoneycrown.com or via her profile page HERE.

December 2, 2024