Financial habits can improve or destroy your life slowly and methodically. Your actual struggle is changing a bad habit into a good one. Once a habit is formed, you can easily maintain it – starting is the hardest part.
In this article, you will understand the good or bad habits and create a financial habit that works.
What Is A Habit?
A habit is something that we do routinely, intentionally or not. Merriam-Webster defines a habit as a settled tendency or usual manner of behavior, an acquired mode of behavior that has become nearly or completely involuntary.
When you do something repeatedly, your brain makes a routine and automates it – you won’t strain to do or think about it. Therefore, saving energy in the process! Intentionally training your brain can form habits that can increase your productivity. You can improve your financial habits, pay off debts, or lose weight quickly!
Creating A New Habit
Maxwell Maltz’s (a plastic surgeon) book – Psycho-Cybernetics, published in 1960, stated it took 21 days to form a habit according to his belief. It has been praised as the standard time frame to form a habit.
In a 2009 study, University College London determined that it may take up to 66 days to form a habit. It means that no one knows how long it takes to create a habit – every person is unique. However, the way to make a habit is the same. 
New habits are easy to create; replacing the old ones becomes simple too. You won’t spend your time and energy breaking old habits. Replace it!
Old habits are embedded deep within us, therefore, are hard to break. You ought to exert more time and energy into overcoming your trained response.
Identifying Your Financial Habits
Now that you can create a habit and influence the old one, you will apply this financially. Before changing to a new financial habit, be sure of what to do with it. Begin by budgeting your finance to know your expenditures. You can decide what adds value and what wastes your money.
Focus on one habit at a time rather than trying to do everything once for poor results. It is how you can pay off debts. Don’t try to pay everything off at once. Make minimum payments on all your debt except the main one you will pay off first.
Use technology to improve your habit of hacking. If you want to form new financial habits, create an alarm or notification that reminds you to do it.
You can even use automation to track your retirement. I highly encourage you to check out Personal Capital. The company incorporates all your investments and finances in one place. Your net worth, cash flow, portfolio, investment, and more are traceable.
Final Thoughts
Habits are small intentional acts repeated over time that will help you reach your goals much faster. They have the power to automate your daily activities easily. Use this power to create new financial habits so you can replace the bad ones. Take advantage of the automation process inside of you!
