Who knew a donut could help you stick to your budget?
Sometimes, my husband grabs a donut for breakfast. I usually skip it because it’s too fattening and high in calories. But yesterday, I decided to join him and picked a delicious glazed chocolate donut. After enjoying it, I felt rewarded, pampered, and indulged. These positive feelings motivated me to:
– Quickly clean up the house
– Prepare an exam for the MBA Finance class I teach
– Do a load of laundry
This got me thinking: could this approach help with managing money?
**Rewards and Research**
Research shows that when forming a new habit, rewarding yourself for success is crucial. When helping others with their financial goals, I always suggest keeping a list of low-cost rewards for when a goal is met. For example, track all your expenses for a week and reward yourself. Or, pay triple the minimum on a credit card debt and get a treat. These rewards motivate you to stay on track.
Managing your finances is tough and takes time. Often, the payoff is far in the future. 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. Then, 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. There are plenty of treats there for just a dollar. 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 great!