6 precommitment strategies to help improve your finances
HAVE you ever had moments where you tell yourself you’re going to start being frugal from now on, only to spend lavishly on your next payday? Sadly, changing your behavior isn’t as easy as wishing it would change the next day. It requires hard work and dedication to fully change a terrible habit. In this case, it’s you overspending and not saving money.
Relying simply on willpower sometimes isn’t enough. It’s like your phone battery: your willpower gets depleted before the day ends. Sometimes, you have to precommit to something in order to prevent your future willpower- depleted self from reverting back to your old ways. Here are some precommitment strategies that can help you in this exact situation:
— Get yourself an accountability partner.
It’s really hard to execute an idea when you only keep it to yourself. Try sharing your plans to change your financial ways with a close friend or relative. You can also ask the0m to be your accountability partner and help police you when you’re having your spending urges. Doing this will help you stay motivated to improve, now that you have someone watching over you.
— Announce your plans on social media.
If one confidante isn’t enough, how about the rest of the world, or rather, the rest of your online friends? Boldly proclaiming to everyone that you’re going to start living frugally will definitely push you to deliver on your promise. Social pressure isn’t always bad, especially if you’re trying to make a positive change in your life. Who knew social media can be this useful?
— Automate your and bills payment. savings
The hassle of depositing money to your savings or paying bills can sometimes discourage you from doing it on time. A great solution is to automate your banking so that you don’t have to go through all that. Contact your bank and arrange an auto- savings and auto-payment arrangement. Most banks in the Philippines already offer this service. Go take advantage of it.
— Write a commitment letter for yourself.
Recovering drug addicts are sometimes encouraged to write a self-incriminating letter to be sent to them the next time they submit to their urges. You can also employ the same strategy by writing a commitment letter addressed to yourself and have a friend keep it. The next time you overspend, your friend will send you the letter and remind you of your financial goals.
— Find someone to compare and compete with.
You know what brings out the best in everyone? Competition. Find people who are also motivated to improve their finances and issue a friendly challenge to them. You can compete on who has the most savings in a month or who had the least spendings for the week. This will further encourage you to better manage your finances, since your pride is at stake.
— Set up rewards and punishments for your goals.
Since precommitment strategies are all about accountability, set up rewards and punishment for every good or bad deed. For example, if you meet your target savings for the month, treat yourself with a fun dessert. If you fail, don’t eat dinner for the next month. Ask your friends for reward and punishment suggestions for added social pressure.
Your heart may be in the right place, but heart alone won’t be enough for you to change your lavish ways. If it did, you won’t have any financial problems right now. As long as you employ these precommitment strategies and you continue working on your good money habits, you’ll eventually get the hang of it. Don’t just say you want to change — you have to commit.