Breaking the Cycle: How to Get Rid of Your Bad Money Habits

Welcome to Herfinance Club with Sue Diamond, a weekly newsletter focusing on a holistic approach to financial Success.?Our mission is simple: we want to inspire ONE million women to talk about money because knowledge is power, and when that knowledge helps you become more independent, it translates to empowerment.

Earlier this month, we started exploring "The Power of Habits: Achieving Financial Success One Step at a Time," inspired by James Clear's "Atomic Habits." You should give it a read!

One of the main things we talked about is improving our spending habits, which we both know can be a bit of a challenge, right? ??

But worry not! I've got you covered. ??

Here are some easy-to-adopt strategies that can gradually help you spend less. ??

These four steps may seem a tad small at first, but trust me, these tiny changes can lead to a huge improvement! ??

Step 1: Let's work on making those bad spending habits less visible, shall we? ??

The first law of behavioral change, according to Clear, is to make the habit you want to diminish or remove unnoticeable. It's all about reducing exposure, and for a bad spending habit, that can mean:

• Unsubscribing from Temptations: Spend an evening hitting the unsubscribe button on every shopping campaign that clogs your inbox. ???
• Social Media Cleanse: Unfollow those Instagram feeds that incessantly feature products that tickle your spending tendencies. ????
• Alter Your Route: Sometimes, avoiding the visual cue is all it takes to prevent a spending spree. Change your regular commute to bypass those shopping avenues. ?????
• Remote Control Switch: Store your TV remote in a drawer, away from immediate reach, flanked by a book on smart finance decisions. It's the little things that can influence your choice of activity. ????

This invisibility tactic may seem too simple — and that's exactly the point. The power lies in the subtlety of your enforced barriers.

Step 2: Let's add a tinge of displeasure to spending ??

The second law warps the delight of your habit into something unappealing. Here's how you can apply this to spending:

• Accountability Partner: Find a friend you trust to keep you accountable for every non-essential purchase you want to make. Just the thought of explaining your shopping splurge can act as a powerful deterrent. ????
• Public Receipts: The kitchen counter becomes your public bulletin board, whether you like it or not. This transparency can curb those spur-of-the-moment purchases. ???
• Equation of Costs: Link purchases you're trying to avoid to an unpleasant task. For every unnecessary spending instance, add a chore to your to-do list. ?????
• Digital Reminder: Commit your goals and reasons for financial restraint to a daily reminder on your phone. Every swipe to view the message could be the pause you need before hitting 'purchase.' ???

Displeasure has an eerie way of wringing out the excitement from habit-driven activities and pushing them toward extinction.

Step 3: Let's make it just a bit more difficult for you to spend. ??

By altering the environment that facilitates your habit, you make it harder for the cycle to continue. For your spending habit:

• App Detox: If your phone is a hotbed of spending apps, maybe it's time for a Clean App Slate. Make purchasing as tedious as possible, and you might find your resolve strengthening. ???
• Minimize Wallet Space: A single-debit card wallet can reduce the likelihood of carrying multiple ways to spend. Sometimes, the inconvenience is your greatest ally. ????
• Browser Cleanse: Remove all remembered payment methods. Inserting digits manually adds a step to the shopping process, dissuading impulsive buys. ????
• Frozen Assets: For extreme measures, submerge your credit cards in a block of ice in the freezer. Desperate times call for desperate (but effective) measures. ????

By making the process of spending more intricate, the Four Laws ensure you reconsider before jumping in.

Step 4: Tarnish the Experience of Spending ??

Lastly, the fourth law of behavioral change suggests making the habit less satisfying or rewarding. An unconventional solution can be:

• Dream Image: For each habit purchase you're trying to eliminate, assign an image that represents the dream realization of your financial goal. Each time you’re about to give in, visualize the picture of this dream. ?????
• The Price of Guilt: For every dollar spent, make a tiny entry into an expense journal or app. Seeing your indulgences add up can have a powerful impact. ????
• Warranty Reminder: Dwell on the lifespan of the product you're about to purchase. Is it worth the number of hours you'll need to work to earn its value? ???

**Phew! That was quite a bit, right? But trust me, these small changes can make a big difference in your spending habits. ??????

By incorporating Clear's Four Laws into your financial routine, you're not just managing expenses; you're embracing a mindful shift towards a healthier financial life. ??♂??? Dedicate time to apply these strategies, and witness each day becoming a small triumph, reinforcing your path to financial empowerment. ????

Remember, cultivating good financial habits is a gradual process, but it's rewarding. Starting with these strategies, you'll gradually spend less and save more, paving the way to a more secure financial future. ????

I know we can do this! ????

Help us achieve our mission and share this newsletter with friends to keep the conversation going and inspire your network! ??????

If you want more ideas on how to transform your relationship with Money grab a copy of The Money Belief Formula...

***Click the?Subscribe bell?icon to the right of my profile photo to receive a notification each time I post content.***

#FinancialWellness #MoneyManagement #HabitChange #SmartSpending #SavingTips #BehavioralEconomics #JamesClear #FinancialGoals #SpendingBarriers #MindfulSpending #DreamBigSaveBig #ExpenseTracking #PracticingGratitude #FinancialEmpowerment #BudgetingSuccess #FinancialFreedom #MoneyMindset #SpendLessSaveMore #PersonalFinance #WealthBuilding #FinancialLiteracy

Whenever you’re ready …?

Interested in improving your relationship with money or uncovering your money beliefs? Do you feel like you might have some blocks in business and your personal finances you’d like to clear? Contact me HERE to learn more.

Keynote and corporate training – Let’s talk about bringing a program into your organization. Just contact me HERE or call (917) 780-2914 and we can talk about some ideas.

Sue Diamond, M.S.W, is a Certified Financial Social Worker, aka Money Coach, and Founder of The Herfinance Club and Money Mastery Academy. This virtual platform provides financial coaching and resources for women to secure their futures for years ahead.

Susan is the author of Smart Woman's Guide.?The Money Belief Formula: Mindset + Behavior = Financial Success.?She can be found at herfinanceclub.com. You can use her DIY Money Story Guide to gain insights into how your past experiences with money may influence your financial future, then explore Susan's book, 1-1 financial coaching and mentoring services, or money mastery program. To find out more about Susan, visit here!