The power of consistency in achieving financial success

Consistency is the magic key to achieving success in all areas of life, and the same is totally true for financial success. Whether you're saving for a deposit on a house, paying off debt, or investing for your retirement, consistency is the foundation that will help you achieve your financial goals.

But as we also all know, consistency can be difficult, and sometimes we need a little help staying the course. In this blog, we'll look at why consistency in financial success is so important.

Why is consistency so important to financial success?

Financial success is not achieved overnight but rather through a series of small, consistent actions taken over time.

For example, if your goal is to save R100 000 for a deposit on a house over the next 2 years, you need to consistently save about R4 167 each month to reach your goal in 2 years. Without consistency, you may struggle to reach your goal of buying that house, or worse, you might give up on it altogether.

Consistency is not just important for achieving your financial goals, but it is also essential for maintaining your financial health.

Consistently paying your bills on time, tracking your expenses and income, and sticking to a monthly spending plan can help you avoid bad debt, improve your credit score, and build wealth over time.

A man wearing trainers climbing wooden stairs.

The value of a SMART financial goals framework

When you set financial goals, you need to make them SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound.

Using our previous example of saving up for a deposit to buy a house and assuming it's affordable for you to do so, a SMART goal would be for you to decide to save R4 200 each month for 24 months until you have R100 000 saved up.

You're saving a Specific amount each month.
It's Measurable because the amount you're saving is clear, and your savings balance can be tracked at any time.
The goal is Achievable because you earn enough money to be able to afford the R4 200 every month for the next 24 months.
It's Relevant because buying a house is one of your financial goals
And it's Time-bound because you've set a specific time frame - 24 months - in which to achieve the goal.

Steps to achieve your SMART financial goals

1. Automate it!

One of the easiest ways to consistently save money is to automate deductions from your bank account. You may even be able to set up automatic transfers to your savings account, retirement account, or investment account. This way, you don't have to remember to save or invest each month, and the money is set aside before you have a chance to spend it.

A woman's hands on a laptop. She's setting up reoccurring debit orders on her bank account.

2. Create a spending plan

Creating an income and expense summary is one of the most important steps to achieving financial success. By sticking to a plan, you can consistently make progress towards your financial goals.