Celebrating Financial Wins
There is often a lot of focus on the actions needed to achieve a goal, and while that is critical, it is also important to consider what to do once you have achieved a goal.
This is especially true when we feel like we are “behind” financially. If you are working towards paying off credit card debt, while your friends are working towards buying a home, your goal can sometimes feel less than, and possibly not worth celebrating.
However, it’s important to celebrate your financial wins (big or small). Taking a moment to celebrate your achievements can help maintain your momentum forward and make the journey a lot more fun.
Acknowledge your effort
As a parent, I’m trying to limit how much I praise my kids for their achievements and focus more on praising their efforts. Sure, I may pleased with their outcome, but I want to reinforce for them that they are capable of working through frustrations and setbacks to achieve those outcomes.
Taking a moment to remind yourself that paying off this credit card, or building up a solid emergency fund was really hard, but you did it, will help to build your resilience when the next financial goal doesn’t come as quickly as you’d like.
Maintain your motivation
Financial progress can feel like a never-ending pursuit, especially if you are working towards a long-term goal (retirement, saving for a down payment, etc). Building in celebrations when you hit a milestone gives you a clear goal to focus on and helps your brain recognize the progress you have made.
For some, making progress towards a big goal is rewarding in and of itself. But for others, building in little treats along the way will make it much easier to stay focused. Even if there is a monetary cost to that celebration, if it helps keep you motivated, it likely has a net positive impact on your net worth.
Reinforce positive habits
When recognizing your efforts, it's a great prompt to recall what specific efforts helped you achieve your goal. By reflecting on what habits or behavior changes allowed you to be successful, you are learning more about what works or doesn’t work for you. Having a clearer understanding of your financial habits will make it easier to make progress toward future goals.
When it comes to paying off credit card debt, unfortunately, it’s very common to pay off a balance, only to find yourself with a similar amount of credit card debt a year or two later. However, if you took the time to reflect on how exactly you paid it off before, you will be in a better position to tackle the debt again.
Or better yet, you may be better able to avoid the credit card debt cycle from re-emerging if you understand what new habits you should maintain long term.
Building Community
While you can celebrate solo, celebrating with others is often more impactful. Sharing your wins (and struggles) with others can help develop a stronger sense of community, and can help others to not feel so alone in their struggles.
Sharing your goals with others can also keep you more accountable. When you tell your friends that you are working to pay off your credit card debt by the end of the year, you are much more likely to stick with it than if you keep your aspirations private.
Just be mindful of who you are sharing your goals and wins with. If you’ve just maxed out your 401k contributions for the year, perhaps your friend who was just laid off is not the ideal person to celebrate your win with.
What does it look like to celebrate your financial wins?
It’s up to you how you want to celebrate. For smaller wins, just taking a moment to pause and acknowledge what you’ve done may be sufficient. Or maybe there is a small treat you don’t often allow yourself to indulge in that you can give yourself permission to enjoy guilt-free (like a visit to that overpriced but delicious coffee shop).
For bigger goals, you may make more of an event out of the celebration. Maybe you are waiting until your emergency fund hits a milestone before you can start planning that dream vacation.
If you know the dopamine hit of a future reward will keep you motivated, tying a reward to your goal can be an effective strategy. And breaking larger goals into smaller ones, with smaller rewards along the way, can make a big goal not feel so daunting.
Is it counterproductive if my celebration costs money?
If you are trying to pay off a $10k credit card debt, and are planning to reward yourself with a $1k shopping spree, yes you might be making all that progress and then putting yourself right back in the hole. However, if the promise of a future purchase or experience is what keeps you motivated, it may be worth the added cost. Just be sure you factor the celebration expense into your goal.
No-cost celebrations
I know it sounds cheesy, but picking a song that gets you pumped up is a great no-cost celebration strategy. Having a mini dance party every time you pay down your loan or transfer money to your IRA is a fantastic way to feel achievement in your body.
Another no-cost celebration is to tell a friend. If you have a friend who you know will be excited for you, share your progress with them. Having others celebrating your progress makes it feel more real than just sitting alone, looking at your banking app.
