Are You Struggling To Change Your “Wicked Ways” When It Comes To Money?

“Just snap out of it!” Perhaps you’ve been told this–or even said it to yourself–when it comes to those pesky money behaviors that are not truly serving you. But if changing how we manage our money were only a matter of willpower, we would all be more successful at making changes and sticking to them. Making changes in your behavior is more about being smart than being strong.

If you are going to attempt to make a change, it really helps to understand what you are up against. This is definitely a ‘knowledge is power’ situation, and I want to share a proven psychological model that will shed light on how and why we change. It’s called the “Stages of Change” model, and understanding it will benefit you by:

• supporting you in navigating financial behavioral change more smoothly
• helping you set realistic expectations as you begin the process of changing your financial habits
• internalizing that change is not that simple, that most of us will “fail” many times before we make a permanent change in a behavior, AND that this is actually part of the change process
• silencing the negative self-talk when it comes to your financial habits {or lack thereof}
• tremendously increasing the odds that you will be successful in reaching your financial goals!

The model was originally developed in the 1970′s by psychology professors Prochaska & DiClemente when they were researching how smokers were able to give up their addiction. It has since been used to help people with everything from weight loss to injury prevention. I believe it is also applicable to the process of change when it comes to financial habits and behaviors.

This evidence-based Stages of Change model demonstrates that change is rarely easy and often requires a gradual progression of small steps toward a larger goal. And, each of us progress through the stages at our own rate.

There are 6 stages of change, outlined below. I have also included some helpful strategies for each stage, which will help you progress to the next one:

Stage 1: PRE-CONTMPLATION In this first stage, you are perfectly content with your current financial behavior, do not feel any pain from real or potential negative consequences, and basically have no motivation to change how you are managing your money. Helpful Strategies:

• introspection
• self-analysis
• identify risks and consequences of the current financial habit or behavior

Stage 2: CONTEMPLATION Here, you are on the fence about changing your financial behaviors. There is a conflict between the part of you that wants to change and the part doesn’t. You may also struggle with believing that you have what it takes to actually make the change you’re contemplating. Helpful Strategies:

• weigh pros and cons of financial behavior
• confirm your readiness to change
• encourage confidence in your abilities to make the change
• identify any barriers to change

Stage 3: PREPARATION You’re decided!  You are willing to take personal responsibility for the change you want and start planning to take action to improve your relationship with money. Helpful Strategies:

• write down your financial goals
• prepare a plan of action {a Breakthrough Session provides a very managable one!}
• make a list of motivating statements/affirmations

Stage 4: ACTION In this stage you actively pursue the financial changes you want to make, and are incorporating new money behaviors and habits. Helpful Strategies:

• reward your success
• seek out social support
• make a list of motivating statements/affirmations

Stage 5: MAINTENANCE When you reach maintenance, you have sustained change for more than six months. The changes have been integrated into your life, and the new money behaviors take less effort, becoming ‘the new normal.’ Your main task at this stage is to prevent yourself from slipping back into those old, ‘wicked ways’ with money. Helpful Strategies:

• develop coping strategies to deal with temptation to revert to old ways
• remember to reward yourself for success

Stage 6: RELAPSE Relapse is a return to the old financial behaviors. This is not inevitable – but is likely – and should not be seen as failure. Often people will relapse several times before they finally succeed in making a (more or less) permanent to a new set of financial habits and money management behaviors. Helpful Strategies:

• identify triggers that lead to the relapse
• recognize barriers to success
• take the necessary steps to overcome these obstacles
• revisit, review, and reaffirm your goals

Do NOT think of these stages as being a linear progression from Pre-contemplation to Maintenance. It is much more realistic and helpful to think of the stages as a spiral staircase where you can move up, but you can also come back to a place you have been before. However, although having a setback can leave you feeling like a “failure,” it is important to realize that when you “fall,” you never go all the way back to the beginning because you have gained some experience on the journey. You can use what you have learned to increase the odds of success the next time.

Remember: Change is a process that happens over time, not overnight! So cut yourself some slack, hop back on the wagon if you tumble off, and combat that negative self-talk by reminding yourself of the stages of change. {You might even want to bookmark this page for future reference!}

At any given point, only 20% of us are able to make a permanent change with only one try. Prochaska & DiClemente’s research confirms that people typically go through the stages of change several times before they achieve success. Those who eventually reach their goal are determined and don’t let their “failures” stop them!

Whatever your financial goals are, keep this model close at hand to guide you to financial success!

** A VIP INVITATION FOR YOU!!
If you’re in the Preparation or Action stage of your financial change journey, I invite you to purchase a Kiss Your Financial Heartache Goodbye Breakthrough Session before the price increase on November 1, 2011. This session will give you a financial success blueprint and action steps to support you in rocking your money mojo. For more info and to see what others are saying about their breakthroughs with me, click here.