How to Conquer Your Evil, Financial-Sabotaging Alter Ego

The following is a guest post by Aaron from Personal Finance for Beginners, a site that focuses on basic principles and strategies that can help you build a brighter financial future. Do you ever find yourself caught in the middle of the argument between the proverbial angel and the devil hovering over either shoulder?

“You should pick up some take-out on your way back home from the gym… You deserve it after finishing that tough workout!”

“Why don’t you just head straight home instead? You just went grocery shopping this morning. The fridge is stocked!”

If you’ve committed to pursuing any type of personal goal that requires discipline – whether it’s related to your personal finances, physical activity, or skill development – then you already know just how hard it can be to come out victorious when you’re faced with these internal dialogues.

Making Behavioral Changes Is Difficult

You’re not alone if you find yourself caught in the middle of these struggles from time to time. After all, making big changes – especially when it goes against years of bad habits or poor examples from those around you – is difficult. Perhaps that’s why “Hero’s Journey” stories about mastering one’s self are so popular, and why characters with complex personalities comprised of both good and evil are often all so relatable. After all, it’s to find yourself torn between:

  • Prioritizing instant gratification versus long-term success
  • Sticking to what’s convenient even when it’s not optimal or effective
  • Making decisions for the approval of others rather than focusing on your own values
  • Continuing with your past behavior out of habit instead of a deliberate choice

When it comes to managing our money, none of us are “machines” capable of making the right decisions with 100% compliance. While this reminder might help relieve any expectations of perfection, you might also start to worry that you’re afflicted with an evil alter ego. Peter Parker becomes Spiderman. Beyoncé becomes Sasha Fierce. But you turn into: A super-spending villain … susceptible to coupons, reward programs, and Amazon Prime?

Do You Have An Evil Financial Alter Ego?

Your evil spend-happy alter ego might not have any exceptional superpowers, but at least you haven’t grown sharp claws, sprouted horns, or started drinking unicorn blood! While your sporadically financially-destructive (or at least negligent) second personality might not always be obvious, there are warning signs that this “dark side” is starting to take over your finances. Your irresponsible alter ego will want to:

  • Buy stuff you can’t afford
  • Make purchases right now rather saving up first
  • Keep up with the Joneses even when it requires debt
  • Skip out on retirement contributions so you can travel now

The list could go on, but it’s also unique from person to person. You know better than anybody else about your favorite vices! But don’t worry, we’ve all got them. Even personal finance bloggers splurge from time to time, too. Yet even when we understand the importance of personal finance and its impact on our physical and mental peace of mind, why do we still find ourselves indulging our “dark side” when it comes to handling our money?

Reasons Why You Have A “Dark Side” With Money

More likely than not, you already have an understanding of the basic principles needed to be financially successful:

In spite of being introduced to these popular financial maxims from a young age, you may still struggle with putting these principles into action. Here are five reasons why you might find your financial “dark side” creeping into your personal finances: You haven’t made financial education a priority Do you depend on a spouse, family member, or financial advisor to help make your financial decisions for you? While there’s nothing wrong with seeking guidance, your financial success ultimately falls squarely on your own shoulders. Educate yourself on the basics of personal finance and improve your abilities to make wise financial decisions. You don’t have the right systems in place Self-discipline and a good memory can only take you so far. Even with the best intentions, it’s easy to miss a credit card payment or overspend on the wrong expenses if you don’t have solid systems or processes in place. You underestimate what it takes to reach your goals When it comes to money, time can be your best friend or your worst enemy. You may find that you’re overly optimistic at just how quickly you can improve your financial situation… you’ll experience occasional setbacks along the way. On the bright side, you’re likely underestimating what you’re capable of over the long run as well. You keep giving in to peer pressure and temptation One-fourth of Americans don’t have any emergency savings. Meanwhile, the average American has over $6,000 in credit card debt. So, unfortunately, your evil alter ego is in good company when it comes to demonstrating such poor financial behavior. If you want to enjoy financial security, there’s a strong chance that you’ll need to approach money differently than your peers. You fail to find a proper balance Maybe you already have a solid understanding of what you can do to take care of your personal finances. The issue isn’t with “theory” but with execution. You go “all out” with your personal finances for a few months before burning out and falling back into your old habits.

11 Tactics to Keep Your Finances Under Control

If any of the abovementioned financial flaws sounded familiar, you might need to better reinforce some of your good financial habits to keep that spend-happy, debt-loving alter ego at bay. Here are a few practical tips that may help:

1. Review your financial transactions

Earlier this year, I discovered $529 in credit card fraud while taking a look at my past month’s financial transactions. If you don’t spend time reviewing your financial history line by line, it’s easy for fraud like this to go unnoticed. Catching credit card fraud isn’t the only benefit of reviewing your expenses – you’ll become more aware of your spending habits if you know you’ll be revisiting them later.

2. Make sure every dollar has a purpose (create a budget!)

Do you spend more money on housing or food each month? If you can’t quickly come up with an answer to that question, there’s a good chance you’re spending much more than you’d expect on eating out. If it’s not food, perhaps it’s travel or clothing. Avoid those “black hole” budget categories by giving every incoming dollar a specific goal.

3. Try a no-spend fast

Set a designated period to go without spending any money. Just like you wouldn’t attempt a food fast for several days on your very first try, choose a realistic goal for your no-spend fast. Start with a single day or week before considering a month-long fast from spending money on non-essential or non-emergency expenses.

4. Find ways to have fun without spending money

Just like you might feel justified in splurging on a treat after a tough workout, you might also feel like rewarding yourself after a long week at work. Don’t let this mindset or a case of boredom cripple your financial goals. Find cheap things to do when you’re bored so you can go have fun without spending a lot of money.

5. Implement a cash-only diet

No, this doesn’t require throwing dollar bills into a mixing bowl. Instead, you’ll withdraw a fixed amount of cash from your checking account and commit to only using those funds to cover a specific type of expenses for a given period. For example, if coffee is your vice, perhaps you’ll withdraw $20 for the pay period. After you spend your $20, you’re done with coffee until the chosen time period is up – no swiping that credit card for you!

6. Connect with others who share your financial goals and values

It’s difficult to save money if you’re surrounded by friends or coworkers with don’t share your same priorities or goals. That’s not too say you need to stop spending time with them. Instead, try adding some new connections with like-minded individuals (whether online or in person) who can share tips or insights and provide accountability.

7. Reward yourself within reason

When I got a raise earlier this year, I wanted to celebrate the good news without sabotaging my goals. Whether it’s a raise, a bonus, or a gift, you can do the same by (1) waiting until the emotions settle down, (2) choosing a fixed percentage – perhaps 10-20% of the lump sum – to use as your “free money,” and (3) choose a reward that’s a one-time purchase rather than recurring lifestyle inflation.

8. Wait on it

Do you find yourself making impulse purchases? Create a “wait for you buy” policy. If you see something you want to buy, write it down. Tell yourself you’ll come back to buy the item after a designated period of time – perhaps seven or 30 days depending on the size of the purchase. This gives you plenty of time to find a better deal, save up for the purchase in advance, or change your mind altogether!

9. Automate everything

It can be exhausting to consistently make the “right” financial decisions over and over again – especially when it’s inconvenient or requires additional work on your end. This is why direct deposits, recurring transfers, and autopay are your best friends when it comes to your finances. Make good financial behavior the default option.

10. Meal prep before you start your week

Eating out for lunch can easily become one of your costliest expenses during the month. You can save time and money by preparing your meals for the week (or at least 2-3 days in advance) on Sunday nights. You can find lots of great meal prep recipes on Google or Pinterest. Cooking something unique for lunch can help make meal prep fun. You might just look forward to trying your culinary masterpiece instead of frequenting the same restaurants!

11. Be realistic

Put your financial behavior into context. Perhaps you aren’t really a villain after all. Have you set reasonable goals for yourself? While there’s nothing wrong with setting aggressive saving or investing goals for yourself, the key is a consistent effort over time. Too extreme of behavior can result in burnout or other setbacks.

Conclusion

As is sometimes the case in stories of good and evil, you may have make friends with the enemy before you are ready to conquer. Get to know your financial alter ego by asking yourself:

  • What financial topics do you need to improve your understanding of?
  • What circumstances seem to trigger bad decisions with your money?
  • How do you commonly rationalize poor financial behavior?
  • Have you set reasonable expectations for your goals?

After assessing your personal situation, try implementing some of the tactics mentioned above. Find the middle ground between your “ideal finances” and your current situation. Make incremental changes to create sustainable change. How do you combat your “bad” financial behaviors? What do you consider to be an appropriate balance between enjoying instant gratification and striving toward your long-term goals?