You go to the gym and nothing
Have you ever wondered why - despite having a membership and going to the gym - you’re not seeing the results you want?
Here are a few reasons why that might be…
1. Lack of consistency
2. You’re not bringing healthy habits home with you
3. You’re in it alone
4. No end goal in mind target
5. You haven’t created a plan
If you haven’t guessed where we’re going with this, the same goes for your finances. You might have the right intentions in showing your personal finances attention every once in a while, but without making money management a consistent part of your life, you’re not going to see any significant changes to your position. It doesn’t have to be overwhelming or a ton of time and effort. But enough so that you’re making financial decisions proactively rather than reactively. This ultimately determines whether you’re in control of your money or whether it controls you!
How to create a new habit or break an old one
Creating a new habit or breaking an old one isn’t easy. On average it takes 66 days for a new behaviour to become a routine. So, instead of forcing new habits into your already busy life, try adding new habits to the end of routines already in place.
Do you check your bank account on the day you’ve been paid? Most likely. Well, use this day to organise your accounts. After you’ve worked out what you need to cover your bills and essentials, transfer money across to your savings account or separate pot as if it were an outgoing (rather than seeing what’s left at the end of the month), and then transfer money across to your spending account or pot. Call it splash cash, this is the money you can enjoy. Your bills are covered, and you’ve put savings aside for the month, so why not allocate an amount to spend on yourself guilt-free without feeling restricted?
Think about it the same way people try losing weight. If you undereat or cut out certain foods altogether, you lose energy and are more likely to crash. Whereas if you can make smaller changes, like eating in moderation, you can still achieve great results, it may just take a little longer. But this way, you’re more likely to sustain healthy eating and keep the weight off.
Building wealth takes time. You can’t be starving yourself of a good time, whilst you save or wait for those scales to tell you what return on investment you’ve made. The journey towards your goal matters just as much as reaching it.
Top tip: You don’t need multiple bank accounts to separate your spending and saving money. There are banks such as Monzo, Starling and many others that allow you to set up separate pots to help you organise your money.
Holding yourself accountable
Have you ever gone to the gym and thought, “I’ve done enough now, time to go home,” when you know you didn’t push yourself at all? You see, exercising by yourself it’s easy to lose motivation because no one is holding you accountable. This is why many people hire a personal trainer.
When it comes to your finances, it doesn’t feel natural to share information with others. But without sharing your goals with someone or working together with someone, it’s easy to slip back into old habits or neglect your finances altogether.
Tell friends and relatives about what you want to achieve so that they can nudge you back on the right track if you’re veering off it. Better yet, seek professional help so that you’ve got someone guiding you. Call it a money trainer.
Goal alignment
How can you measure success and appreciate a good result if you don’t know what you’re working towards? You may have hit a personal best and not even realised it. Creating meaningful goals and a plan aligned with these goals will help you focus and stay motivated. You can also reward yourself for hitting those little wins. Without a plan or goal in mind, nothing will feel enough.
Remember, it’s not just about showing up at the gym or checking in with your personal finances every once in a while, but following a suitable plan (and sticking to it!)
“Consistency is what transforms average into excellence.”
