Will that actually come to pass? It depends. Recessions are hard to predict, even without a pandemic sweeping the nation. What we can control though, is how we manage our own money. Even if you\u2019ve lost your job or your retirement is taking a hit, you can still take this time to build good money habits that will help you outlast the recession.<\/p>\n\n\n\n
Building good money habits takes time, but it is completely doable. Here\u2019s how to make the changes you want to see in your life:<\/p>\n\n\n\n Sources: We really are creatures of habit. Whether we\u2019re conscious of it or not, a good chunk of our daily lives comes from routine. In fact, a study from Duke University found that up to 45% of our everyday behaviors<\/a> happen in the same place nearly every day.<\/p>\n\n\n\n It is part of what makes breaking a bad habit so difficult. If, for example, you\u2019re used to late night snacking in front of Netflix, just turning on the TV can make you feel hungry. Used as a force for good that same repetition can help you build better habits\u2014but it doesn\u2019t happen overnight. While 21 days is widely touted as the ideal timeframe for habit building, a study published in the European Journal of Social Psychology found it really took 66 days<\/a> on average to make a new habit stick.<\/p>\n\n\n\n When we think of a habit, we usually picture the action, such as taking the trash out Sunday after dinner or brushing our teeth every morning. But behind the scenes, our habits actually work on a loop system in our mind.<\/p>\n\n\n\n First, there is the \u201ccue,\u201d which triggers our brains to start the \u201croutine\u201d or the action part of a habit. Once we actually complete the task, our brains need a form of \u201creward\u201d to complete the loop and engrain the habit. Once this happens repeatedly, we no longer need to use much brain power to work through the loop, it becomes automatic and a habit is born.<\/p>\n\n\n\n Say, for example, you often get bored browsing Netflix on lazy Sunday afternoons. The location (your couch on a Sunday) and the emotion (boredom) act as a trigger. Your brain recalls an action you usually do at this time, say mindless online shopping<\/a>. Virtual browsing and buying gives you temporary joy, which in turn, rewards your brain and further engrains the shopping habit. Before you know it, you\u2019re automatically turning to those retail apps every weekend.<\/p>\n\n\n\n Most of the time, our life changes fail because we take on too much and expect instant results. Take resolutions, for example. Every Jan. 1 like clockwork, we resolve to start keeping a perfect budget, save $10,000, or stop impulsive spending overnight. Is it really any wonder that 88% of our resolutions fail<\/a>?<\/p>\n\n\n\n The key to good habit building is to set reasonable goals and create an actionable plan to get there. Try taking these three steps:<\/p>\n\n\n\n Like any habit, building good money routines takes small steps overtime. Say, for example, you\u2019ve never been a good saver. That\u2019s OK, you can change that now. While experts recommend having six months\u2019 worth of expenses saved, if you aim that high at once, you\u2019ll burn out before saving is really a habit. Instead, start with a small $500 (or even $100) goal. Commit to moving $50 of your paycheck<\/a> into savings every payday. Once you\u2019ve got the hang of that, bump it up to $75 per paycheck. Not only will you reach your goal over time, but you\u2019ll turn saving into a habit. Your brain will start to recognize your paycheck as the cue, the cue will tell you to save right away, and you\u2019ll get a sense of reward from seeing the balance grow.<\/p>\n\n\n\n![\"How](\"https:\/\/www.quicken.com\/blog\/wp-content\/uploads\/2022\/08\/Quicken-Habit-infographic1.png\")
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\nhttps:\/\/onlinelibrary.wiley.com\/doi\/abs\/10.1002\/ejsp.674<\/a>
\nhttp:\/\/www.richardwiseman.com\/quirkology\/new\/USA\/Experiment_resolution.shtml<\/a>
\nhttps:\/\/web.archive.org\/web\/20110526144503\/http:\/\/dornsife.usc.edu\/wendywood\/research\/documents\/Neal.Wood.Quinn.2006.pdf<\/a><\/p>\n\n\n\nHabits Don\u2019t Happen Overnight<\/h2>\n\n\n\n
The Habit Loop<\/h2>\n\n\n\n
3 Steps to Build Better Habits<\/h2>\n\n\n\n
Build Good Money Habits<\/h2>\n\n\n\n