No. 3: Pick a plan -- and stick to it
How It Works: Have debt to pay off? There's a way to outsmart your brain here too. In another experiment called Borrow Less Tomorrow (it came to be after Save More Tomorrow was such a smashing success), people with debt were put on a three-pronged program to help them pay down their balances.
First, they met with a member of the program's staff who advised them on several different repayment strategies, including "accelerated" plans that would up the amount that they paid off by a little each month. Then they corralled a buddy (or three!) who'd send them monthly reminders to keep them on track.
At the end of 12 months, 51% of the people who'd adopted a debt repayment plan were on track -- and 41% of them had used an accelerated plan to pay down their debts faster.
Why It Works: Researchers chalk the success up to three factors: choosing a particular plan, committing to the idea of allocating a certain amount to repayment each month and engaging peer support (read: those telephone or email reminders from friends).
Once again, effort trumped any underlying genetics: "Good habits do end-runs around the parts of our personality that give in to temptation," explains Dr. Shefrin.
It's easy to emulate this on your own: LearnVest's Money Center allows you to set a financial goal and then calculate how long it will take to reach it, depending on how much you put toward that goal each month. With any Chase Blueprint® card, you can also select a repayment plan that will show you when you'll reach a zero balance. Recruiting a friend to act as your financial conscience? Well, that's simple.
No. 4: Spend on your best self
How It Works: To make your money behave the way you want it to, you need to first decide who you are and then make your budget obey that identity. Perplexed? Let us explain.
It can be hard to just "save" blindly or "not spend so much" when you don't have a larger goal driving you. But if you're someone who believes that providing for your children is important (like this mom, who says paying for her daughter's college is her ultimate financial goal), you'll be a lot more likely to make financial decisions align with your principles.
Accomplishing this is a cinch: In the Money Center, we break down your budget into three essential categories based on the 50/20/30 rule -- but you have free will when it comes to creating and naming the folders that describe your saving and spending. So if owning a house is important to you, designate a "dream home" savings folder. If being physically fit is your top priority, christen an exercise savings folder to reflect that goal.
Why It Works: "If we identify ourselves as responsible, and take pride in living up to the virtues associated with that identity, then we activate reward centers in the brain associated with goal achievement," says Dr. Shefrin.
The other helpful factor: Humans have a desire to see themselves in a certain light, and we'll reject anything that conflicts with that reality. It's a phenomenon known as identity reinforcement theory. In other words, you can override bad money behavior by adopting good habits that reflect the person you really want to be.
More from LearnVest:
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Here's an additional thing that works for me:
I calculated how much money I bring home per hour. Divided my take-home pay (after all taxes etc. have been taken out) by the number of hours that paycheck represented.
Then when I'm considering buying something that is not essential (not rent / mortgage, utilities, basic groceries, etc.) I divide it's price by my per hour rate.
That tells me how many hours I have to work to pay for that item.
Then I consider how hard I have to work and how well I like my job (or not) vs. how many hours I'd have to work to pay for that item.
It makes me less impulsive when I consider how hard I have to work to pay for something.
If you intend to charge the item, don't forget to bump up its cost by your credit card interest rate (unless you know you can pay off the whole credit card balance at the end of the month).
Another good idea
GET RID OF YOUR CREDIT CARDS,
You'll spend MUCH, MUCH less if you don't have them
We need a good example on budgeting ....And it's not the Government
I do not need any credit help. My condo is paid for.
I get tired of working hard and having all the lowlifes chisel me out of my money.
My father has always had nasty credit, but he knows how to make a lot of money anyhow.
Why are three Senators offices and One House of Representatives offices following me on Twitter?
Do you think Christie let Cory get in there as a McKissick candidate?
Do you think Snyder and Kevin Orr precipitated Duggan's win tonight?
O'Malley has the cheapest insurance for the mandate.
I think I rediscovered Bruno Bettleheim, or a torque of him. I want some recognition.
Bloomberg was your Javitts Republican.
Guess which political candidate has "noticeable" features and actions that mark him as a recent member of the British Aristocracy, and many people have this, but not so prominently. Pappy Bush is one (hint).
It's time I tell the world about the fishing industry and fish on Friday. From the near conclusive study of New Bedford Massachusetts USA and the Russian Eskimos of Alaska USA. It is proof positive that the Canon law changed by Pope Pius to not need to eat fish on Friday, turned New Bedford into a Ghost Town with the propensity for Alzheimer's disease. It also destroyed the Greek economy. But as a reference point, for the fish diet, Eskimos actually out-live the even the tribes of the South Japanese Seas. Why they don't? Actually like New Bedford and Whale hunting, is Eskimos have no blubber to chew, that reduces tooth decay and loss of teeth. This actually creates the problem of mastication and poor digestion, altering their dietary absorption bringing on an early death for the lost Russian tribes. Also fish is known as brain food, as on Friday, that lowers the brain damage induced by toxicology. Helping the working class, endure the evening on Friday without drunkenness, domestic disputes, child rearing, and emergency situations as found in the likes of vehicular homicide.
I am really surprised a man like the new Pope Francis, known as infallible didn't recognize this (like Bishop Menendez and Mother Theresa did in New Bedford MA. USA. To reconcile Pope Pius in a Mass) that he should have on All Saints Day, re-inducted Fish on Friday. Someone remind him of this, for the Greeks, for the Portuguese, for the Eskimos, as found in the wisdom of the poor, as unto Hades: "If you give a man a fish, he has fish for a day. If you teach a man to fish, he has fish for a lifetime."
Little note: The wealthy New Yorkers? that live in Connecticut, used to go to Switzerland for sheep's blood implants or as like transfusions and this wear the dear tick starts in Ct. USA, not from a goat spirochete (who ever heard of goats in Connecticut anyways? geez), but from a sheep spirochete as found in human from the heath spas of Switzerland. ****ing ****s!
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