Did you know that a donut can actually help you stay on budget?
Sometimes, my husband grabs a donut for breakfast. I usually skip it because of the calories and fat. But yesterday was different; I decided to join him for a donut since I hadn’t had many sweets that day.
I picked a delicious glazed chocolate donut. After enjoying every bite, I felt rewarded and pampered. This boost of positive feelings motivated me to get things done:
– I quickly cleaned the house.
– I prepared an exam for the MBA Finance class I teach.
– I did a load of laundry.
Now, let’s flip this experience and see if it can help with money management.
### Rewards and Research
Research shows that when forming a new habit, rewarding yourself for successes is crucial. When I help others with their financial goals, I always suggest keeping a list of low-cost rewards to use when a goal is met. For instance, if you track all your expenses for a week, treat yourself. Or, if you pay triple the minimum on a credit card debt, get a small reward. These rewards serve as motivators to stay on track.
Managing finances is tough and can take a long time to see results. If you’re dealing with a lot of debt or a low-paying job, paying off debt or saving for an emergency fund can take a while. Rewarding yourself along the way makes it easier to stay committed.
### What Are Your Rewards?
Challenge yourself this week with a financial goal and write it down. Writing it down increases your chances of achieving it.
Next, make a list of 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 I can find plenty of treats for just a dollar each. Some rewards are free, like giving yourself an extra hour of “me” time to do something fun like a craft, hiking, or reading a magazine.
So, set a financial goal, achieve it, and reward yourself. You’ll feel amazing!