Small steps to achieve your big picture

It's great to have big, audacious goals to achieve, but take small steps to get there.

It's great to have big, audacious goals to achieve. Perhaps you want to retire early, become financially free, or become a multi-millionaire.

To achieve big goals, you have do things differently than you have done them before.

However, finding the confidence to take a big leap out of your comfort zone is not easy.

Big goals can seem unachievable at first, as well as scary, so a good plan is to take small steps initially rather than a giant leap. Small steps successfully achieved give you a sense of making progress while building your confidence.

Clarify your starting point: You can't achieve a goal without knowing where you are starting from. It's no different than taking a road trip. If your destination is Whitianga, the route you take, and the time you take to get there, will be different depending on whether you are starting out in Auckland, Wellington or Christchurch. Take stock of your current situation including your assets, debts and income and then develop your strategy.

Make one small change at a time: Set up a regular payment into a savings account, even if it is just a small amount. Review your KiwiSaver fund. Investigate ways to increase your income. Research investment opportunities. Doing something every day to take you towards your goals can add up to big progress over time.

Track your progress: What gets measured gets done! A simple way to achieve your goals is to create an image you can use to mark your progress. For example, if you want to reduce debt, draw a flower with a number of petals each of which represents a unit of debt ($100, $1000 or $10,000). As you pay off each unit, colour in a petal so you finish with a flower.

- Liz Koh is an authorised financial adviser. The advice given is general and does not constitute specific advice. A disclosure statement is free. Call 0800 273 847. For free e-books, see moneymax.co.nz and moneymaxcoach.com.