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Healthy Habits



A while a go I made a blog post about small changes making a big difference to money and I thought I would revisit it this week but with a different slant about habits.

 

This week after a week away and I put on weight I decided the time had come to make a change. Since turning 40 the normal things haven’t been working and the weight goes into different places and incredibly hard to shift. So cue me doing what I always do and buying loads of books (from carboots and charity shops) on being fit after 40 and loasing weight and the menopause.

 

Although all very interesting after reading the biological bits I decided not to go whole hog and follow strictly all the diets as I would invariably give up after a week. So as I was motivated I decided to make 4 small changes which were easy (hmm maybe wrong word) to do

 

1)        Stop drinking until I am on the plane for my holiday in 7 weeks

2)        Stop eating nice chocolate and biscuit based goods when I felt a bit peckish

3)        Up my daily steps to 15000 a day

4)        Up my drinking of water – I am very bad at this

 

The result was these little steps were easy to do and I lost 3 pounds and remained positive so now I can up it with a bit more exercise. I also feel brilliant…

 

This made me think about money and when people try and save or change completely they fall of the waggon so to speak as they just go for it (if it works great) but sometimes they feel like they are going without – whereas

 

There are so many rules out there, budgeting techiques like 50/30/20 or the 80/20, drastic cost saving – but the truth is it is different for everyone you need to make work what is right for you.

 

In James Clears brilliant book on habits called Atomic Habits he really emphasises the impact of making small changes and focussing on smaller changes first.

He also introduces the concept of habit stacking – which is pair an old habit with a new one like after brushing your teeth, meditate for one minute).

This can really help with education and starting to understand and manage your money.

 

By pairing a new habit with an existing one, you create a strong, reliable trigger that helps ensure consistency. For instance, if you already brush your teeth every morning, you can stack a new habit of flossing right after.

Applying Habit Stacking to Financial Health

Here are several practical ways to apply habit stacking to your financial habits:


  1. Saving Money:

Existing Habit: Drinking your morning coffee.

Stacked Habit: Transfer a small amount of money to your savings account.

How: While enjoying your coffee, use your banking app to transfer $5 to your savings account. This daily habit can accumulate into a significant savings over time.


  1. Budgeting:

Existing Habit: Checking your email every morning.

Stacked Habit: Review your budget or financial goals.

How: Before diving into your emails, take a few minutes to log into your budgeting app or spreadsheet and review your spending from the previous day. This keeps your financial goals top of mind.


  1. Paying Off Debt:

Existing Habit: Ending your workday.

Stacked Habit: Make an extra debt payment.

How: After shutting down your computer at the end of the day, make a small extra payment towards your debt. Even if it’s just a few dollars, these payments can reduce your debt faster over time.


  1. Investing:

Existing Habit: Watching TV in the evening.

Stacked Habit: Review your investment portfolio or make a micro-investment.

How: During a commercial break, use an investing app to check on your portfolio or invest a small amount of money in stocks or funds. Consistent, small investments can grow substantially over the years.


  1. Tracking Expenses:

Existing Habit: Having dinner.

Stacked Habit: Log daily expenses.

How: After finishing dinner, spend a few minutes logging your daily expenses into an app or notebook. This practice helps you stay aware of your spending habits.




Tips for Successful Habit Stacking

  1. Start Small: Begin with small, manageable habits that don’t require much effort. Gradually build on them as they become more ingrained in your routine.

  2. Be Consistent: The key to habit stacking is consistency. Perform the new habit immediately after the existing one every time.

  3. Use Reminders: Set reminders on your phone or place visual cues in your environment to reinforce the habit stack.

  4. Celebrate Progress: Acknowledge and celebrate your progress, no matter how small. Positive reinforcement can help solidify the new habits.


I have started when I do my monthly banking and budget buying a £200 aldi voucher off of Everup and a £25 amazon gift card to help me budget each month – I also get cashback and get the coins to play the games which ends up with more cashback. All going to my Christmas pot.



So Habit stacking is a really powerful technique that can simplify the process of building good financial habits. By linking new financial behaviors to your existing routines, you can make significant strides toward your financial goals without feeling overwhelmed. Whether you’re aiming to save more, spend wisely, pay off debt, or invest consistently, habit stacking can help you create a sustainable path to financial health. Start small, stay consistent, and watch as these small changes lead to big financial improvements over time.

 

 

I hope you find this useful and any tips you have please feel free to share

 

Laura and Nicola

 

PS – Link to James Clears’ book

 


 
 
 

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