Archive for August, 2011

Change Your Environment Before Relying on Your Will Power

Posted By damien on August 29th, 2011

What we know vs. what we do

Spend a couple of minutes here soaking up wisdom, or melt your brain with this Ke$ha song, your choice.

There’s a gap between what we know we should do and what we actually do. You know you should go to the gym instead of watching TV, but you come home from work and turn on Bachelor Pad.

You know you should save more for your retirement, but Best Buy keeps enticing you with massive discount on tablets. If human beings were completely rational, there would be no gap between what we know and what we do.

Why the gap? Because our environment has more impact on our choices than we think. To see real results in behavior change, try changing your milieu first. Side-step your willpower by putting yourself in fail-proof situations.

How to Short-Circuit Your Will Power By Changing Your Environment

  1. I know I’ll spend cash if its in my wallet, so I don’t carry cash. For others, they may overspend with plastic, so they only carry cash and employ the envelope system.
  2. Instead of writing a check each month to invest in your retirement account, set up automatic withdrawals from your checking account.This way you don’t even make the decision, “Should I put money in my investments this month?” because the decision is made for you.
  3. When it comes to eating healthy, if you don’t buy junk food in the first place, then you don’t have to decide whether to eat well or not. If there’s no soda in the fridge, then when snack time comes around the decision to drink water is already made for you.

Here’s the bottom line: We put too much emphasis on strengthening our will power and disregard the influence that our environment has on our decisions. Its easier and more effective to first look for ways to change your surroundings and then focus on behavior change.

How do you side-step your will power by putting yourself in fail-proof situations?

Don’t Carry Cash in Your Wallet or Purse or Murse

Posted By damien on August 22nd, 2011

Vending Machine will eat your monies

Do not carry cash. You will spend it. Bada-bing bada-boom. Simple as that.

I know some financial gurus say to carry cash and use it because it “hurts more” than spending with plastic, but that has not been my experience.

When I’ve got a few bucks in my pocket and my stomach is grumbling, guess what, it doesn’t hurt at all to walk over to the vending machine and buy some brown sugar and cinnamon pop tarts. (The best kind, by the way.)

Here’s the thing: you think you have control over your behavior. Guess what, your environment has a lot more control over your behavior than you do. If you’ve got a few dollars in your wallet, they’re easy to burn on an impulse purchase.

So, to combat impulse spending, set up some barriers for yourself:

  1. Do not carry cash around.
  2. If you must carry cash around, carry large bills (at least $20′s) because you’ll be less apt to want to break them on small purchases. (And don’t worry about getting mugged and your cash getting stolen, thieves don’t expect people to carry cash nowadays.)
  3. Use debit cards (especially rewards cards) for purchases. Only the most hi-tech vending machines accept cards as payment.

Bottom line: carrying small amounts of cash around results in impulse purchases and wasted cash. If you think your “will power” will protect you from nickel-and-diming away your future, you are mistaken. Your environment sends you cues about what to buy and if your cash is handy, you’re a goner.

And it’s called a “laptop case”, not a murse.

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