Throughout my college years and early adulthood, I struggled with yo-yo dieting. I was never at risk of becoming dangerously overweight, but I had about 20 pounds to lose thanks to constant chocolate, junk food and pasta cravings. For several years, I tried to work around those cravings. If I worked out for 20 minutes, I could justify eating pizza, or if I took the latest drugstore formula promising a speedier metabolism, I could continue to indulge in my twice daily hot chocolate habit. Unsurprisingly, none of it worked.
It wasn’t until I changed my approach to food and my habits of consumption that I was finally able to conquer those 20 pounds. When I ditched the excuses, justifications and comprises for having a soda or dessert or whatever other unhealthy habits I engaged in, I uncovered a healthy lifestyle that allowed me not only lose the unwanted weight but to maintain my newfound fitness for years to come.
For the most part, people have an understanding of what’s bad for them and they also have an overwhelming desire to be fit. But for many, that knowledge and desire alone aren’t enough. Until healthy habits become part of a daily routine, there’s no hope for a sustainable healthy lifestyle.
The same is true of financial habits. People generally know what their spending limitations are and they also have a desire to be wealthy (or at least solvent), but those two things alone aren’t enough to produce financial abundance.
So what are the habits needed to maintain fiscal fitness? If spending smarter is on your list of New Years resolutions, consider implementing these frugal habits to take back control of your finances:
Take responsibility: As a mindset as well as a habit, taking responsibility for your finances is the first step toward spending smarter. Though it may not always feel like it, the way in which we spend our money is our choice. When you choose to take responsibility and choose to spend less than you earn, you choose financial fitness.
Control discretionary spending: In his column, “The Invisible Rich,” Knight Kiplinger writes that “the biggest barrier to becoming rich is living like you’re rich before you are.” In other words, the more frivolously you spend on unnecessary expenses, the more you crowd out the savings that will enable you to enjoy a wealthy future.
Distinguish wants from needs: Be honest with yourself about expenses that are truly necessary. Yes, you need a place to live, but no, it doesn’t have to be a massive loft in the most expensive neighborhood in town. Yes, you need to eat, but it doesn’t have to be in the form of pricey artisan tacos.
Also, keep in mind that just because you’ve always had a certain expense, it doesn’t make it a necessary expense. Cable is prime example.
Prioritize: Frugality isn’t about cutting out all spending beyond the basics; it’s about identifying the things that provide the greatest value and prioritizing your spending to align with those values.
Stick to your values: As Clayton Christensen writes in his essay, “How Will You Measure Your Life ,” “It’s easier to hold to your principles 100 percent of the time than it is to hold to them 98 percent of the time.” In other words, once you cross the line once, it’s easier to do again and again and again. Hence the need for habits.
I found this to be particularly true in my quest for fitness. It was much simpler to simply eliminate soda from my diet than it was to try moderating it. When I started implementing frugality as a lifestyle, I adopted a similar approach, cutting out the aimless shopping trips and “browsing” that inevitably ended in a purchase and adopting a policy of sticking to a list or ordering online so as not to be tempted into unnecessary spending.
Practice gratitude: The best way to combat unnecessary spending temptations is to remain grounded in gratitude. Frugality, like fitness, is a lifestyle, and part of that lifestyle is existing in such a way that you become content with what you have, rather than constantly feeling the need more. By developing the habit of gratitude and recognizing what you’re grateful for each and every day, you’ll become frugal simply by virtue of realizing that you have all you need already.
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How to Develop Frugal Habits originally appeared on usnews.com
