Changing Financial Behavior
Behavior is not easy to change.
If it were, it would be easy to exercise more and eat healthier, quit procrastinating and work efficiently, and a host of other behaviors that we know are good for us and will move us closer to the life we want.
Again, behavior is not easy to change. But behavior does produce results, whether good or bad. And if we do not like the results, we must change the behavior.
When we put it in the context of being healthy, we know that a series of small incremental steps, a system of controlling portions and nutrition, establishing goals, and accountability are all necessary to transform our bodies and lead to a healthier lifestyle.
How does this relate to our financial well-being?
There are many decisions we make on a daily, weekly, monthly basis that add up over time to affect our financial well-being today and in the future. You can think of it as you would interest compounding. Each decision builds on the previous one with a cumulative effect. It is easy to think that retirement, savings for a rainy day, college costs, etc. is something to worry about way in the future and not plan for it today. However, decisions made today (including the decision not to make a decision) about when and what kind of home to buy, which employer benefits to choose, how and when to purchase cars, vacations, and which vehicles and assets to use for retirement and college savings could have a huge impact on your ability to live the life you want in the near future and in years to come.
Whether we achieve the goals that are important to us or whether we do not, usually depends on the choices we make each day, not one big decision. Therefore, just like it is with our health, we need a system of monitoring and measuring in order to get where we want to be financially.
The first step is recognizing where you are. Take inventory of what your financial picture looks like right now. Observe the financial steps that have gotten you there.
The second step is to set goals. Dream about what you would like to see happen and then establish some realistic objectives.
Third, monitor your progress over time to get the results you want. Each choice becomes a step in the right direction.
And, of course, seek out the help of those who can give you objective advice and keep you on track. That is why we do what we do. We have seen the reality of what good financial decisions can do over time for individuals and families. Peace of mind, confidence, and a plan to follow are well worth the time and effort that it takes to develop a comprehensive financial plan and follow through to meet your life goals.
Behavior is not easy to change.
So, let us help keep you accountable to choose the financial behaviors that will give you the life you want.