Bad habits aren’t things that we’re proud of. The good thing about bad habits, though, is that we can break them. It takes discipline, motivation and commitment, but we can break bad habits.
Changing Money Management Habits
If you have some questionable money management habits, then the first thing you need to do is identify them.
Next, you must write them down. Committing these to paper does a few things. It creates a record of where you started, shows that you’re serious about altering your behavior, and adds accountability to your project to change.
Here’s an example list of poor habits that need to be changed:
My Poor Money Management Habits
- I rarely save money.
- I splurge and spend money on things that I don’t necessarily need.
- I often pay bills after the due date.
Now that you’ve identified the habits you wish to change, you need to decide what corrective action you should take to counter these bad habits. Determine what you want your new habits to be and commit them to paper as well.
Following up on our example list, here is what the new habit list would look like.
My Goals for Good Money Management Habits
- I will pay myself first by moving money to a savings account when I get my paycheck. I will do this before I pay for anything else.
- I will always wait 24 hours before buying something that costs $40 or more so I can carefully consider whether I need it.
- I will create a calendar of when bills are due and begin to utilize online bill pay to minimize the chance of paying a bill late.
Incorporating all three of these new habits at once into your life will be overwhelming and difficult, which is why Leo Babauta of Zen Habits recommends tackling them one at a time.