Charles Duhigg’s Guide to Changing Habits comes with his free newsletter along with a great video that summarizes his process for changing habits.
Financial habits are hard to break but my afternoon cookie habit is costing me more than I like to admit. My afternoon trip to Starbucks includes a Grande Peppermint Mocha Latte, extra hot, no foam, with whip – and a package of chocolate covered graham crackers. Total cost: $9.00 including tip.
That’s $45 a week, $180 a month – okay so March has an extra two weekdays bringing the annual total to about $2200. That’s around $22,000 by the time my office lease expires in 10 years (not including any interest or stock market growth – as if…).
Sometimes when I talk about financial habits (and specifically spending habits) with my friends, clients, and workshop participants, some of them shake their heads and tell me, “I don’t know why in the world I do some of the things I do. Sometimes I buy things even though I know I can’t afford them. It just doesn’t make sense.” But actually, if we connect the dots of our financial habits to what matters most to us, it might make perfect sense!
Charles Duhigg, is a reporter at the New York Times and author of a great book, The Power of Habit. I’ve been reading The Power of Habit on my iPad.
If you subscribe to Charles Duhigg’s newsletter, you’ll get his Guide to Changing Habits. Here’s the outline to Charles’ video and it also works as a guide to changing financial habits.
The Guide to Changing Financial Habits:
* Identify the routine
* Experiment with rewards
* Isolate the cue
* Have a plan
With those insights about The Power of Habit, I’m going to kick that cookie habit. I guess that means I need to get on the scale so that I can measure the benefits in pounds and dollars.
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