–Hey Taylor – No matter how much I try to save more and spend less, I fall into the same routines that keep me stuck in debt and living month to month. Any idea what I need to change? Is this just how it’s going to be, or is there some habitual behavior that needs to go?

–Hey Bashir – Years from now, I hope you look back on the day you decided to ask this question as a major turning point. So many people try and fail to get better with money because they make it more about the money than their own Money Personality. You absolutely have habits that affect your financial status, and once you’re aware of those it becomes so much easier to make adjustments.

  1. Figure out your Money Personality. Everyone should do this, even people who have never had a financial care in their life. We all have strong feelings about money, some which might be hard to define, so giving yourself the framework of a Money Personality can be really useful. You might be a Spender with Security Seeker undertones, leading you to freak out about your bank account while still buying things somewhat recklessly. The habitual behavior you talk about isn’t just a habit you can break, it’s more of a personality trait that you need to identify and understand. If you go to 5MoneyPersonalities.com, you can get a bunch of free information about the five personalities.
  2. Track your habits. If you’re unclear as to which habits are holding you back financially, download a habit-tracking app. This will give you actual data regarding how you spend your day, and it will make you second guess every financially irresponsible decision because you know you’ll hear about it later from your habit tracker. A lot of our routines feel baked into our schedules, like there’s simply nothing we can do about where we buy groceries or how many trips to the coffee shop we take. If you take a step back to assess the situation, I’m guessing you’ll find at least one or two habits that could be altered.
  3. Get accountability. An app on your phone can only do so much when it comes to changing behavior. Once you know your Money Personality and have an idea about which habits are holding you back, find someone who can help keep you honest. Ask your spouse or a friend or a coworker—ideally someone who needs you to help push them in return. When you have a partner whose gains you can also measure, it can really help motivate you to make the changes you want to see.

Start with the Money Personality assessment and then work backwards. Putting a label to your relationship with money can be really eye opening, as you’ll be able to identify your own strengths and weaknesses and make more informed financial decisions. Good luck, Bashir!

 

TAYLOR J KOVAR

 

CHIEF EXECUTIVE OFFICER

CERTIFIED FINANCIAL PLANNER™