How Eating Donuts Can Help You Stay on Budget
Who would have thought that a donut could actually help you manage your budget? Sometimes, my husband brings home a donut for breakfast. Normally, I avoid this treat because it’s too fattening and high in calories. But yesterday, I decided to indulge in a glazed chocolate donut.
After enjoying the donut, I felt rewarded, pampered, and indulged. These positive feelings motivated me to take action: I quickly cleaned the house, prepared an exam for the MBA Finance class I teach, and did a load of laundry.
Now, let’s flip this experience and see how it can help with money management.
Rewards and Research
Research indicates that when forming a new habit, rewarding yourself for success is crucial to reinforce positive behavior. When helping others with their financial goals, I always suggest keeping a list of low-cost rewards to use whenever a financial goal is achieved. For instance, track all your expenses for a week and then reward yourself. Or, pay triple the minimum on a credit card debt and treat yourself. These rewards act as motivators to stay on track.
Managing your finances is challenging and time-consuming, and the payoff often seems far away. If you have a lot of debt or a low-paying job, paying off that debt or saving for an emergency fund can take a while. Giving yourself small rewards along the way makes it easier to stay focused.
What are Your Rewards?
Challenge yourself this week with a financial goal and write it down. If you don’t write it down, you’re less likely to achieve it. Next, list several low-cost rewards. If you’re trying to lose weight, skip the donut.
One of my favorite rewards is a trip to the dollar store, where there are plenty of treats for just a dollar each. Some rewards are even free, like giving yourself an extra hour of “me” time to do a craft, go for a hike, read a magazine, or whatever you enjoy.
So, set a financial goal, accomplish it, and reward yourself. You’ll feel fantastic!