Three Steps to Conquering Your Bad Money Habits

You develop your money then your habits create your life.

From waking up and brushing your teeth in the early morning to always falling asleep on the left side of your bed, your life is filled with endless habits.

Good or bad, they are always there waiting for you to fall back on them.

The same is true for your money habits.

Whether you are aware of it or not, whatever you do with your money right now, you do it because you are used to doing it this way. It is your money habit.

So ask yourself, is this habit leading you to poverty or getting you one step closer to the life you want for yourself?

Although your habits determine what type of life you will end up with, it's important to remember that you are in the driving seat. You have the power to create them. So how do you change the bad money habits holding you back?

You do it in three simple steps.

1. Catch your Bad Money Habit

You know them. You know what you are doing that you shouldn't be doing. You prefer not to acknowledge that they are there.

I'm the same.

I overspend when I go grocery shopping.

I am always convincing myself that I need to buy more. So while I budget an amount for groceries, I always end up buying more than I need. Meaning I often end up throwing out some things that go bad. Or end up with a pantry full of goods I don't usually use.

Now it's your turn. What are your bad money habits?

List them.

Make a rough list of the habits you think may be holding you back. Put them down on paper. Here is mine.

• Overspending when I go grocery shopping

2. Analyze Them

Under each of the habits you wish to change, write down the condition that leads you to put your bad money habits to practice and the conditions that keep you from falling into the bad habits. Here is an example of mine.

Overspending at the Grocery store

-> I go to the grocery store hungry and end up buying things I don't often buy

-> Every time I go to the first floor of the grocery store to look around, I end up buying home supplies I don't need

-> When I forget to check what supplies I have at home before going to the grocery store I end up buying things I already have at home

-> If I have to go back to the grocery store in the middle of the week, I buy a lot of snacks I don't need

-> If I go to the store with limited time and my budget in mind, I don't overspend

Do you see the situations that cause me to overspend? I can see them.

3. Break These Patterns

Now I know I shouldn't go to the first floor of the grocery store to wander around. I should also check my pantry and refrigerator before heading out to do my weekly grocery shopping.

I should try my best to only go to the store once a week, as it helps me to stay within my budget. When I go to the store, I should have my list and allocate a set amount of time to finish grocery shopping.

In the same way, I can identify when I overspend, so can you if you are honest with yourself. Putting them down on paper and acknowledging them is a great start.

Remember that the change will not happen overnight. You must always remind yourself what to do and why you should do it for as long as it takes.

Breaking bad habits is different for everyone. So have some patience, be honest with yourself, and do the work. I promise it will be worth it.

The challenge

This week, review your money habits. Follow the three steps to identify and break the bad ones.