Transcript of video:
A family member of mine once joked that “quitting smoking is easy – I’ve done it a dozen times”. Bad financial habits can be just as tough to kick.
“We don’t save enough.” “We don’t know where our money is going.” “We need to get out of debt.” These statements come up frequently from people we work with, and they share one thing in common – they are all products of habits that have developed, or failed to develop, over time.
Most of us would agree that these are “bad” financial habits, but simply labeling behavior isn’t sufficient to change it. So, how do we start to make the changes necessary to getting on a good financial path? Here’s a 3-step program that my experience has shown to be effective:
First, we take inventory. Once we stop avoiding the truth, learning exactly where we stand and specifically what we can do about it often provides the motivation needed to climb out of our rut;
Our next step is to set goals – modest ones at first, that grow more ambitious as new habits take hold;
Finally, we measure progress regularly.
And don’t plan on an overnight transformation – change is a process, not an event.