Mental Hacks for Resolutions
“Tomorrow, is the first blank page of a 365 page book. Write a good one.”
With the holidays upon us, we inevitably start to think about what the new year will bring. If you’re like me, you look at the new year as a clean slate where we can kickstart changes to better ourselves.
How many of you ever feel like your New Year's resolutions are a yearly tradition of setting yourself up for disappointment? Well, you're not alone. Studies show that most people abandon their resolutions within weeks, and there's even a "National Quitters Day" dedicated to this phenomenon!
6 Brain Hacks to Turn Resolutions into Habits
But this year, things can be different when it comes to improving your finances. By harnessing the power of neuroscience and implementing a few strategic "brain hacks," you can set yourself up for success and achieve lasting financial change.
1. Habit Stacking: Linking New Behaviors to Existing Routines
Imagine you want to start tracking your expenses. Instead of trying to remember to do it randomly, try "stacking" it onto an existing habit, like checking your email each morning. By linking the new behavior (tracking expenses) to an established routine, you're more likely to remember and follow through.
Example: Each time you check your bank account online, take a few minutes to categorize your recent transactions in a budgeting app.
2. Visualization: Picturing Your Financial Future
Visualization isn't just daydreaming; it's a powerful tool for goal achievement. Vividly imagine yourself reaching your financial goals, whether it's paying off debt, saving for a down payment, or retiring comfortably. This mental imagery can help you stay motivated and focused on your long-term vision.
Example: Create a vision board with images representing your financial goals, like a debt-free life or a dream vacation. Look at it daily to remind yourself of what you're working towards.
3. Gamification: Making Finances Fun
Turn your financial goals into a game with rewards for achieving milestones. This injects an element of fun and competition, making the process more enjoyable and engaging. Break down your goals into smaller milestones and reward yourself for each achievement. This injects an element of fun and keeps you motivated.
Example: Use a budgeting app that rewards you with points or badges for staying on track with your spending goals. You could even set up a friendly competition with a friend or family member to see who can save the most each month.
4. Keystone Habits: Building a Strong Financial Foundation
Certain habits can have a ripple effect on your overall financial well-being. These are known as "keystone habits." For example, regularly reviewing your budget and tracking your spending can lead to more mindful spending and better financial decision-making.
Example: Set aside time each week to review your budget and track your spending. This will help you identify areas where you can cut back and make adjustments as needed.
5. Minimum Viable Effort: Starting Small, Building Momentum
Don't try to overhaul your entire financial life at once. Instead, start with small, manageable steps. This makes the process less daunting and increases your chances of success. These small wins build momentum and confidence.
Example: If you want to start saving more, begin by automatically transferring a small amount from each paycheck to a separate savings account. Once you're comfortable with that, you can gradually increase the amount.
6. Group Habits: The Power of Community
Joining a group of like-minded individuals can provide support, encouragement, and accountability. Whether it's an online community or a local financial literacy group, connecting with others who share your goals can help you stay on track.
Example: Join an online forum or community dedicated to personal finance. Share your goals, challenges, and successes with others, and learn from their experiences.
Action Items
Sticking to financial resolutions isn't about willpower; it's about understanding how your brain works and using that knowledge to your advantage. By implementing these brain hacks, you can rewire your habits and achieve lasting financial change.
Remember, change is a process, but with the right tools, you can launch yourself into a successful and fulfilling new year. Celebrate your progress, be kind to yourself when you stumble, and keep moving forward.
You've got this!
~Alex
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