The Rewards of Good Financial Habits
Something I learned early in my career as a financial advisor is that behavior change is difficult. When I began working in personal finance, I did quite a bit of basic financial education around budgeting, saving, and paying off debt. I remember how excited I was as I would devour financial books, learning financial principles that I couldn’t wait to share and implement with my clients. However, I soon realized how difficult it is for people to change their behaviors. Of course, I should have known this since it is the same for me as much as it is for the next person, and just because I was excited about personal finance didn’t mean everyone I met with was.
Despite the challenge of making changes that often require dedication and sacrifice, there were plenty of success stories. I’ve seen people really buckle down to improve their situation, sometimes that meant putting together and living out a plan that helped them live within their means, selling vehicles they never should have purchased in the first place, or finding ways to increase their income. The benefit of putting in this effort is the financial and emotional rewards. It isn’t simply about getting to a better financial position, but rather instilling habits that can change our financial priorities and the way we view what is most important.
Developing good financial habits often comes out of necessity, such as when you start managing your money for the first time, or find yourself in challenging financial circumstances. Regardless of what prompts you to focus on your finances, good financial habits result in numerous long-term rewards. There is a certain joy that comes from the result of discipline. When Rachael and I were first married and gave ourselves $50/month each of spending money, using that to buy simple things felt good, as did seeing our small savings account grow.
One of the fun and rewarding things about my job is watching the financial progression through different stages of life. If it is any encouragement, most of my clients who have more than enough today got there by developing good financial habits early on, and most didn’t start with a lot or have it come easily. Again, their habits were usually developed out of necessity, yet they kept them as their income and assets grew. Today, they feel financially content and still find joy in relatively small rewards, though their bank accounts often allow those rewards to be larger if they so choose. And yet despite being able to afford much more, they often choose the reasonable route rather than indulging in luxury, while splurging occasionally and maintaining a comfortable lifestyle that is well within their means.
If you need a little motivation to change your financial path or aren’t sure how to get started, feel free to contact me to schedule a time to talk, advisor@blakegallion.com.
