Old habits die hard.
Can the same be said of good habits? That is once good habits are set, are they unbreakable?
I’ve been reflecting on financial habits while reading Jim Davies’ book “Being The Person Your Dog Thinks You Are; The Science of a Better You.”
While I’m a huge dog lover, this book is not about dogs. It’s about how to create personal transformation. Davies explores how we can best tailor routines and strategies for optimal success in our lives, be it personal or professional.
Davies is in good company on the habit front. James Clear, author of the bestseller “Atomic Habits” and Charles Dhigg, author of “The Power of Habit” are also contributors in this space and their books are both excellent.
I’m still making my way through Davies’ book but one thing that jumped out was his emphasis on habits and actions that lend themselves to quantifiable and purposeful success in areas that count, and not just self-development for the sake of it.
For example, you may be thinking that learning a new language will make you a better person and grow your brain. But if the ultimate goal is to pump the self-development machine so you can excel at a particular thing that will make you a better, x, y, z, then you are better off focusing your efforts in a more directed way.
That may seem obvious but sometimes in our efforts to self-improve, there is no real thought for how taking on a new challenge or goal, will lend itself to achieving a real-world outcome for you.
When it comes to financial goals, the holy grail for most people is making more money. People want to be rich but a lot of people don’t want to put in the effort. Instead, they buy a lottery ticket which is a fool’s game and a waste of money by and large. Sure someone wins but the probability is horrible.
Shockingly, some people spend A LOT of money each week on lottery tickets.
The odds are that if they used that money to pay off debt, invest it in the share market or enrolled themself in course that taught them a new skill or improved an existing one, the pay off would be a A LOT higher.
If you want to get better with money, you need to reform your behaviours with money, which typically involves spending less, saving more or creating more income. These are action-based behaviours, not theory-based.
At some stage, after you’ve downloaded and listened to every financial podcast there is and read every wealth creation book on the market, you need to put that knowledge to work. And the formula to get ahead financial is really very simple. Spend less than your earn, and invest the rest so it can start making money for you over time.
It’s easier said than done otherwise we’d have a lot more wealthy people.
Two years ago, much to my disappointment, my son started vaping. A waste of money and a terrible thing for your health. My lectures don’t work.
When I try to explain that $30-a-week bad habit could be transformed into a $120 a month good investment habit, I get blank stares.
Old habits die hard, particularly when they become addictions. No amount of rationalising can beat out the dopamine hits after the brain decides it’s a likeable habit.
I’m guessing that it won’t be until junior has to choose between paying rent and buying food that the vaping habit starts to dissipate. We’ll see.
Alas, it is human nature that until you identify something as a problem, you’re not going to actively look for a solution.
I’ll be on alert for that cry for help in early 2025.
According to habit experts like Davies, Dighh and Clear, the best way to break bad habits is to find healthier substitutions, that you trick your brain into liking. If it’s giving up cookies at afternoon tea, perhaps it’s buying your favourite fruit instead.
If it’s giving up happy hour when you get home from work, then its finding something to do at that witching hour outside of the home so the temptation is not there.
I used to have a regular habit of doing yoga after work which had a beneficial result of killing any craving for booze.
It’s probably a routine I should look at rebooting alongside my three-times weekly pilates workouts. It’s a good habit that rewards on many levels compared to a glass or two of wine after work, which makes you gain weight, watch TV and blob out.
I can thank automation for many of my good habits; making sure I don’t miss any bill payments, regular monthly payments into investment vehicles including KiwiSaver, and paying off my airpoints earning credit card bill in full every month. It doesn’t take long to set these things up and the long-term rewards are good.
Financial habits are arguably much easier to put into place than health habits but maybe that’s the Pinot Noir talking.
But whether it’s health or financial goals you’re aiming for, having a mentor or someone to cheer you up, definitely helps I reckon.
