A person was telling me today that they needed to save about $3000 this year if they intend to buy this new item that is coming out next year. As you can tell, that is a fairly large chunk of money for many. Therefore, in his mind this is not achievable as he doesn’t really have any money left at the end of the day as is.
That didn’t sounds like much though honestly. I then suggested that he break that down into days. With 365 days in a year, that means to save $3000 a year he would have to find a way to save a little over $8/day. When that number is thrown at him it even comes across to him in a way such as “Really, you can’t save $8/say?” That made him rethink how easy it can be achieved and what changes he could make to do so.
For example, he is a coffee drinker and so stopping the habit of buying a cup of coffee from a chain store versus making his own could easily save that much. Breaking numbers by day like this just makes it so much easier to expose your spending habits and how realistic it can be to save the money that you need.