How to Change Disruptive Money Habits

In psychology, there’s a term known as “antecedent interventions” which essentially means altering the environment so we don’t engage in those negative habits or behaviors in the first place, such as impulsive spending or failing to save money. When it comes to improving financial health, think of these strategies as small changes in your environment or routines that set you up for more responsible financial decisions. Today we’ll dive into a few of those antecedent interventions that will be sure to positively impact the future of your financial health.

Removing Credit Card Information

Online shopping is incredibly convenient, but it can also lead to impulsive spending. One discreet strategy is to remove your credit card information from your favorite shopping websites. Without the convenience of saved payment details, making a purchase will require more effort, providing a moment of pause to rethink your decision.

Out of Sight, Out of Mind

For impulse purchases, adopting the "out of sight, out of mind" principle can work wonders. Store your credit cards in a less accessible place, making it less tempting to reach for them on a whim. This simple change can reduce impulse buying.

Visual Budget Reminders

We're more likely to adhere to our budget if it's right in front of us. Place your budget summary or financial goals in a location where you'll regularly see them. This subtle reminder can discourage overspending.

Automate Your Savings

One of the most effective strategies is to automate your savings. Set up automatic transfers from your checking to your savings account on your payday. By making it effortless to save, you're more likely to stick to your savings goals.

Modify Your Environment

In the context of personal finance, altering your environment can shape your behavior. Unsubscribe from sale emails or delete shopping apps from your phone. These actions make it easier to resist impulsive spending.

Address Emotional Spending

Identify the emotional triggers that lead to impulse buying. Create a strategy by seeking alternative coping mechanisms for stress, sadness, or boredom. Instead of shopping, engage in activities like exercise, meditation, or a hobby to address these emotions.

By incorporating these strategies into your financial routines, you'll find yourself making more thoughtful and responsible financial choices. These small changes in your environment and habits can set the stage for better financial health without the need for conscious willpower. It's a subtle but powerful way to guide your financial behavior in the right direction.