New Year’s Habits
I’m not a fan of New Year's Resolutions. It’s unrealistic to just hope that once the new year hits we will suddenly be a person who makes drastically different decisions. While I’m all for making positive changes in your life, resolutions focus too much on desired outcomes without much thought put into HOW you will actually get there.
If instead, you focus on what specific behaviors you will change, and how you plan to do that, it drastically increases your chances for successful outcomes.
Building New Habits
An effective way to implement changes in our lives is to form new habits.
It’s hard to consistently make good choices, but once you can build those good choices into your routine, they start to feel automatic. Once you’ve formed the habit it doesn’t take all that much effort or motivation to keep doing it.
I want to get more exercise this year, but do I want to go for a run today? No, not really. However, if going for a run first thing in the morning becomes a habit or a part of my morning routine, it takes the element of decision out of it. Once it’s an established routine, it's much more likely to happen.
The book Atomic Habits by James Clear has lots of great insights on how to build effective habits, and most of the concepts here have been borrowed from the book.
Get Specific
Once you know what outcome you want, get specific on the action steps it will take to get there. Focus on a small habit to incorporate, or a current habit that you can shift. Instead of saying “I’m going to spend less money” you focus on changing a specific spending habit. If you’ve gotten into the routine of stopping at Starbucks every morning on the way to work, that's a specific enough habit that you can tackle.
Instead of just saying “I’m going to spend less at Starbucks this year” or “I’m going to make coffee at home”, you might say “I’m going to turn on my coffee maker at home before I get in the shower every morning” By defining a simple but specific task you make it easier for your groggy self to actually do it. There is less decision-making needed. Once you’ve taken the small step of turning on your coffee maker, you’ve built the momentum and are likely to make yourself that to-go cup of coffee, and once you have your travel mug in hand, you are less likely to stop at Starbucks on the way to work.
Visual Cues
It can be tempting to slip back into your old habits, so creating a visual reminder can help you stay on track. If you are trying to save up money for a vacation, you might create a savings goal tracker (like the big thermometer fundraising goal trackers you often see near schools) so you can visually see your progress.
Another visual cue is a picture that reminds you why you are saving money. Perhaps you’ve decided that you will pack a lunch to bring to work at least 3 days a week, to help save for that vacation. By putting a picture of the beach you are hoping to go to on your fridge it will be a great reminder of why it’s worth spending the extra 5 minutes to pack a lunch today, instead of going out to eat.
When are you most tempted to diverge from your plan? Having a visual cue that will be visible at that point can help you stay on track.
Avoid All or Nothing
To completely give up a habit or behavior can feel very restrictive. If you inevitably slip, even just one time, you may feel like you’ve failed and are likely to give up entirely.
Taking an “All Things in Moderation” approach has its pitfalls, too. With a Moderation approach, you have to make repeated mini-decisions about when it’s acceptable to make an exception to your rule. Sticking with the Starbucks example, if you are trying to reduce, but not eliminate your Starbucks habit, it's easy to find yourself justifying why today it makes sense to stop for coffee, and suddenly you realize you always have a reason to justify a Starbucks run.
Instead, the Moderation approach works well when you set up parameters for yourself. Instead of saying “I’ll go to Starbucks less this month” say “I’ll make coffee at home Monday through Thursday, and on Fridays, I’ll treat myself to Starbucks”. In this scenario you still get to indulge, it’s not a forbidden fruit, but you’ve drastically limited the frequency and eliminated the need to make the “right” decision daily.
Reward Yourself
Celebrate your progress along the way. Our brains are more motivated by immediate rewards than long-term rewards. If you are working towards a larger goal, it can feel discouraging to see that you are still a long way from reaching it. Creating mini-milestones can help keep you motivated. If you’ve stuck with making your coffee at home for a full month, perhaps it’s time to treat yourself to a new travel mug.
If you are trying to save money, spending some of that saved money to treat yourself may feel counterproductive. However, if spending a little to celebrate your progress is what keeps you motivated to stick with the habit, it may be worth it.
There are, however, many free/cheap ways to celebrate your progress.
Pick out a song that makes you feel like an empowered badass and have a monthly little dance party.
Share your milestone with a supportive friend. Saying it out loud, and hearing your friend congratulate you for your continued progress can feel good.
Make a special meal or bake yourself a celebratory cake.
Reduce Exposure to Temptation
It’s easier to have self-control when you aren’t surrounded by temptation. Think about the situations or circumstances where it will be hardest to stick to your plan. Then brainstorm ways to either avoid those situations or at least buffer yourself from the temptation.
If you have a friend who always suggests going to expensive restaurants, maybe you suggest meeting up for a hike this weekend instead.
If you tend to shop on your phone while lying in bed, maybe set up restrictions on your phone to block certain apps after 8 pm.
If you can’t make it out of Target without adding at least 3-5 impulse purchases to your cart, maybe you should avoid Target altogether for a while.
By focusing on one or two specific behaviors or habits you want to change, you are more likely to stick with them. Then, once those become part of your routine, you’ll be able to tackle another small shift.
If you’d like help creating habits that will have a huge impact on your financial life, consider getting some 1:1 support. Schedule a call with Sarah to learn strategies that will work for you and your lifestyle.
