fbpx
U

How to Build Good Habits and Stick to Them

November 29, 2019
coins

New habits are hard to make and old habits are hard to break. How can you make new habits more easily and stick to them?

With the New Year right around the corner, many Americans are thinking about New Year’s resolutions. Breaking New Year’s resolutions has become an old joke at this point. Countless stand-up comedy routines point out the huge increase of people at the gym in January, and then the sharp drop off in February. Research shows that 60% of us make New Year’s resolutions, but only 8% are successful in keeping them.

Financial resolutions are among the most common. Last year, 53% of Americans had a resolution to save more money. We know that only 8% are successful in keeping their New Year’s resolutions, so most who resolve to save more money end up failing. How can we stick to our new habits in the coming New Year?

Consistency is the key

Behaviors are difficult to form, but once a behavior becomes a habit it is automatic. We do difficult things without thinking about it; we wake up at the same time every day and go to sleep at the same time every night (generally speaking), and we go to work without thinking about it. Good financial habits may seem out of reach if you’ve been practicing bad financial habits your entire life, but they can become just as easy and automatic as going to work or brushing your teeth.

Research shows it takes a little over two months for new behaviors to become automatic habits. That means it takes two months to change your financial life forever; two months of saving money and practicing good financial habits. After that, your good financial behaviors will become second nature.

Focus on the habits that matter

Make sure your New Year’s resolutions are obtainable, and don’t aim too high or take on too much. If you plan to make unrealistic changes in your life, you might get discouraged when you don’t have success and give up altogether. It’s better to make small, incremental changes that stick than try to change too much at once, become overwhelmed, and give up.

Hold yourself accountable

If you aren’t serious about your resolutions, you won’t be successful in keeping them. Take your resolutions seriously by holding yourself accountable; it might be a good idea to not take any “cheat days” before your habits have fully formed. Tell your friends and family about your resolutions, too. If you feel like you’re letting others down by not following through with your resolutions, they’re more likely to stick.

Reward yourself for your success

There’s a fine line between being frugal and being a miser. Make sure you don’t become the latter by rewarding yourself for your success. Once your habits have fully formed, it is okay to take cheat days or reward yourself occasionally.

More discipline is required when your habits are new and fresh, but as they get more ingrained into your behavior, a day off is harmless.

Don’t wait until New Year’s

If there’s a change you want to make in your life, there’s no need to wait until New Year’s to make it. Procrastinating until January 1st will only make you less likely to be successful in making the change you envision.

Make 2020 the year you stick to your New Year’s resolutions and accomplish your financial goals. Our most recent show, How to Stick to Your 2020 Financial Goals, is available on YouTube now.

FILED UNDER: Blogs
TAGGED WITH: new year

Connect

Subscribe

Most Recent Episodes

Financial Planning 101 (By Age) 2023 Edition

Throughout every decade, there are different areas of your financial life that come in and out of focus. In this episode, we'll discuss what you need to focus on by age, pitfalls to watch out for, and how to know you're doing it right. In this episode, you'll learn:...

Is the 2023 Housing Crash Around the Corner?

Housing prices skyrocketed after the pandemic to all-time highs, and mortgage rates have more than doubled since 2020. Homes are harder to purchase for more Americans, which means it’s more important than ever to make sure you are ready to buy before purchasing. In...

Watch This Before Rebalancing Your Investment Portfolio!

85% of Americans don’t rebalance their 401(k). Are they making a huge mistake? In this episode, we’ll discuss the “why” behind rebalancing, how to do it, and the data on whether or not rebalancing can increase your return. In this episode, you’ll learn: What...

Don’t Make This HUGE 401(k) Mistake!

Americans are making a HUGE mistake in their 401(k) that could cost them thousands by retirement. We’ll talk about why this is happening and how you can avoid making the same mistake in this Q&A episode! For more information on how to make the most out of every...

Alex Hormozi’s Top Money Advice! (Financial Advisors React)

In this episode, we react to Alex Hormozi's financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO) Online Course! Sign up for our Know Your Number Course! Check out our Net Worth Tool! Get FREE downloads full of financial advice from...

Everything You Need to Know About Finances in Your 20s

In this episode, we discuss everything you need to know about finances in your twenties. In this episode, you’ll learn: The top financial advice for your twenties How to start building wealth and the steps you should take Enjoy the Show? Sign up for the Financial...

The Most Valuable Asset in Building Wealth!

This episode will show you how to maximize the most valuable resource you have - starting right at this moment. What is it, you may ask? It’s TIME. If you give your money time to grow, you’ll be amazed at how much your dollars can become - it’s incredible! How wild is...

Financial Hacks and Habits of the Top 1% (By Age)

Who wouldn’t want to have a high enough income and net worth to be considered part of the top 1%? In this episode, we’ll tell you exactly how much you need to be considered part of the top 1% and the habits and hacks those in the top 1% used to get there.   In this...