Money is Basic: Changing Your Habits is Hard

The more I read and write about money the more I realize there’s never going to be a magic solution that changes the way people use their money.

Deep down money is basic. I mean look at this one principle – “live below your means.”

Those four words pretty much tell you everything you need to do to live a financially stable life.

You know the HOW of living below your means. You spend less than you earn, simple. It’s the actual getting there that’s the problem. Because no matter how much you educate yourself about money you’re never going to reach your goals until you change your habits.

Self-Denial is Self-Discipline

One of my favorite authors is Brian Tracy. I love Eat that Frog and The Power of Self-Discipline. I’ve read both of these books more times than I count.

In fact, every time I feel like I’m slipping off the path that I need to be on I flip to one of my favorite chapters in one of these books.

Tracy often says that self-discipline is self-denial. And it’s true.

No matter what you want – whether that be personally, professionally, or financially you’re going to have to go through some degree of self-denial.

Let’s take credit card debt for example. If you’ve currently got $20k in credit card debt, are trying to get out of it, but still occasionally charge unneeded items on your card you’re not practicing self-discipline. And you’re never going to get out of debt, no matter how you try to justify it.

You’ve got to first accept your fault (and don’t worry we all have our faults) and then practice self-discipline to work on changing your habits.

Change One Habit at a Time

It takes on average six weeks to develop a new habit or to replace an old habit.

Trying to overhaul your financial life all at one is a quick path to failure. Instead focus on trying to develop or replace one habit at a time.

For instance, every time that you get online to shop for something you don’t need, go ahead and transfer five dollars into your savings account and then immediately disconnect. You’ll replace your bad habit with a good one. This will help curb your impulse spending and grow your bank account at the same time. It’s a win-win.

Be aware of what you’re doing and work on that one habit for at least six weeks before moving on to the next. Replacing your bad habit with a good will quickly get you to where you need to be. And before you know it your new habit will become second nature – you won’t even have to think about it.

Challenge Yourself

A good goal is realistic but it’s not easy. It should challenge you.

I remember Sam from Financial Samurai saying once saying “that if you don’t feel the pain of saving then you’re not saving enough.”

You need a hurdle to jump over. That’s the only way that you can grow as a person.

That’s not to say that everything you do should cause you to struggle. But you should push yourself outside of your comfort zone and really strive to reach the important goals that will help you build a better life.

Money is Basic

My guess is that you already know the “how” of improving your financial situation. Now it’s time to push yourself to succeed.

It won’t be easy but it will be worth it in the end.

What have you done to change a bad money habit or develop a good money habit?