Changing Them Are Simpler Than You Think!
They’re this seasons “It Shoe”. They’re hot and on sale. But do they belong in your closet? For years I have been an impulse shopper you know the type of person who had to have the latest and the best. They say humans are creatures of habit. And this is especially true when it comes to how we manage our money. Not only are bad money habits pervasive, they can dramatically impact our everyday lives and future; changing them seems to be a beast all unto itself. I have to be clear, I was not someone who did not know how to make the most of the money and was well educated on ways to make it work for me both in a traditional and non-traditional sense; however I just chose to ignore it. I am a true entrepreneur at heart and thought I was immune to the pitfalls of bad money managing habits. For years I would dispense advice on how to make money, invest money and get out of debt. Yet I seemed to ignore the advice I was giving. It finally dawned on me if I can dispense it and watch others realize their dream, why can’t I do the same for myself. With some real examination and fact facing, I began to take heed to the messages I was giving. And because I realized my financial health is as important as my emotional and physical health I began to reshape how I view my money.
What money habits do many of us desperately want to reverse? Impulse spending is at the top of the list, a recent survey conducted by the National Endowment for Financial Education (NEFE) revealed that four out of five American adults have made impulse buys in the past year -- and 66% later regretted at least one of these impulse purchases. The glaring question is: how to change this habit? CreditCard.com's Lisa Bertagnoli offers eight steps to change bad financial habits that each of us can put into play:
1. Determine Spending Triggers- Maintain a money journal documenting each thing you buy, as well as when and why you buy it, begin to understand what stresses and behavioral patterns result in dysfunctional spending.
2. Distinguish "Wants" From "Needs”- Don't go into debt for things that are purely discretionary, like private school tuition if you live in a district with great public schools.
3. Think Before You Buy- Put strategies in place that require you to pause and consider the implications of your purchases before you pull the trigger. G. Alan Marlatt, a psychologist and Director of Seattle's Addictive Behaviors Research Center, told Bertagnoli that he recommends would-be buyers work through a four-part matrix of the immediate pros and cons of making an impulse buy, and the pros and cons of not making that same purchase, prior to making a purchase.
4. Take the First Step- No matter how small. Paying off even a single high-interest credit card can create massive confidence and relief, snowballing into the momentum required to eliminate other debt.
5. Euphemize- The mere word "budget" strikes fear into the hearts of many us. Calling it a "spending plan" shifts the emphasis to what you can buy, rather than what you can't.
6. Work a Plan- Set your shopping trips up for success and ration spending by taking along a shopping list, just enough cash to buy what you need, or even a trusty pal who can reign you in.
7. Allow for Small Treats Along the Way- Extended deprivation is a setup for failure; plan to give yourself inexpensive rewards for meeting financial milestones, like saving a certain dollar amount or paying a bill off.
8. Push Through the Glitches- Relapsing into a spending fit or making a late monthly payment is not cause for you to call off your whole money management mission. Have some compassion for yourself -- if you backslide, get right back on your financial fitness program (and return those shoes!).
What money habits do many of us desperately want to reverse? Impulse spending is at the top of the list, a recent survey conducted by the National Endowment for Financial Education (NEFE) revealed that four out of five American adults have made impulse buys in the past year -- and 66% later regretted at least one of these impulse purchases. The glaring question is: how to change this habit? CreditCard.com's Lisa Bertagnoli offers eight steps to change bad financial habits that each of us can put into play:
1. Determine Spending Triggers- Maintain a money journal documenting each thing you buy, as well as when and why you buy it, begin to understand what stresses and behavioral patterns result in dysfunctional spending.
2. Distinguish "Wants" From "Needs”- Don't go into debt for things that are purely discretionary, like private school tuition if you live in a district with great public schools.
3. Think Before You Buy- Put strategies in place that require you to pause and consider the implications of your purchases before you pull the trigger. G. Alan Marlatt, a psychologist and Director of Seattle's Addictive Behaviors Research Center, told Bertagnoli that he recommends would-be buyers work through a four-part matrix of the immediate pros and cons of making an impulse buy, and the pros and cons of not making that same purchase, prior to making a purchase.
4. Take the First Step- No matter how small. Paying off even a single high-interest credit card can create massive confidence and relief, snowballing into the momentum required to eliminate other debt.
5. Euphemize- The mere word "budget" strikes fear into the hearts of many us. Calling it a "spending plan" shifts the emphasis to what you can buy, rather than what you can't.
6. Work a Plan- Set your shopping trips up for success and ration spending by taking along a shopping list, just enough cash to buy what you need, or even a trusty pal who can reign you in.
7. Allow for Small Treats Along the Way- Extended deprivation is a setup for failure; plan to give yourself inexpensive rewards for meeting financial milestones, like saving a certain dollar amount or paying a bill off.
8. Push Through the Glitches- Relapsing into a spending fit or making a late monthly payment is not cause for you to call off your whole money management mission. Have some compassion for yourself -- if you backslide, get right back on your financial fitness program (and return those shoes!).
I want to reiterate, it’s never too late to change your thinking and views on spending money. While you may not have been taught how to manage money and the ways to make it work for you, being financially savvy is not something for the super wealthy, it is innate and something we DESERVE!
Article by Eslyn
