The Dirt on Building Good Money Habits

The Chief Scientist of the Rodale Institute, Dr. Kristine Nichols recently lectured on the importance of our country’s soil, and how its structure is breaking down.  In a few decades we may be unable to grow food on many farms in this country.

Apparently soil has a structure to it, including microbes that all work together. When disrupted, soil loses potency and effectiveness.  Dr. Nichols talked about dust bowls we experience in the mid-west now, that are similar to the 1930’s. She talked about flooding on farmland – not due to significant rainfall, but due to the lack of structure in the soil so it can’t absorb and hold water to feed plants.  Water sits on top and drowns them.

The Rain of Financial Knowledge

I started thinking about the rainfall and comparing it to the amount of knowledge broadcasted about money. If we have zero good money habits, it seems daunting to build a structure of good habits. Money knowledge isn’t absorbed because we don’t know where to start.  If we have good money habits structured into our days, we can incorporate a bit more knowledge and strengthen our foundation. It becomes a reinforced loop.

Plant the Seed with One Good Money Habit

On average, we probably have around 50 “anchor” habits we do everyday – like brushing our teeth, turning on the shower, and kissing our kids goodbye.  These habits are the structure of our day. They pretty well always get done. The trick is to start building one good money habit in with our anchor habits. Eventually it becomes natural and not work.  And boy, does the load on our shoulders start disappearing – one small, successful habit at a time.

Related Article: 4 Steps to Build Better Money Habits

Start with this:

1. Pick an anchor habit where you have flexibility either with it or right after it, to add a new 10-15 minute behavior. Think coffee in the morning, after loading the dishwasher at night, etc.
2. Decide on one small money habit you’d like to build. Maybe its looking at your bank account, or reviewing your credit card transactions from the day before.
3. Once you finish your Anchor habit in #1, immediately begin your new money habit. The first time, it may be finding your password, and that’s ok!
4. Review after a week to see if you can make it easier, or if you’d like to progress to another habit.

Carrie Rattle is a Financial Therapist and the CEO at BehavioralCents. She is an executive veteran of the financial services industry and works with professional women on their mind and money behaviors to help them build an equal voice in the world. Thoughts always welcome: carrierattle@behavioralcents.com.