Often our money habits can be so buried in our subconscious that we are not even aware of how they interfere with our ability to handle our money successfully.

While our money habits are usually established early in life by our family environment, they also evolve from the environment we live in today.  Modern living makes money management difficult.  Most of us know that having a reserve savings is important for our financial well-being; but few of us do it on a regular basis.

Unfortunately, knowing better has not meant doing better.  As recently as the 1980’s savings were in the double digits -- people were saving at least 10% or more of their income.  Today it is a negative digit - most of the population is not saving any money at all.  Worse, many are using credit cards and borrowing to spend more than they earn and are just hoping it will all work out somehow down the line.

For example a local couple who were emotionally attached to their business only knew how to run their business a certain way.  In the early days their business was profitable and provided a lucrative income.   However, when market circumstances changed and their business started on a downward trend their ingrained habits prevented them from acting appropriately.   Instead of changing their ways they decided to borrow money from the bank.  

Over the years their business kept declining and their options for improving or selling their business diminished over time.  Rather than change their habits they found it easier to borrow money “hoping” their business would once again flourish.  As you might have guessed their gamble did not pay off.

This story applies equally to those of us who earn a salary instead of running a business.  If your money habits are overspending and not saving there will come a time when your debts will become impossible to manage.  Even if you are not increasingly going into debt, without savings any unexpected large expense or loss of income can lead to financial problems.

What are your money habits?  Are you a spender or a saver?   Do you use cash or credit?  Do you have a spending plan or wing it month to month?   Do you maintain a checkbook balance or do you just check with the bank?  When you feel down do you go for a walk or go shopping?  Do you pay off your credit card balances or only make minimum payments?  Do you put money in a savings account or are you constantly putting money in and taking it out?  

Habits are human nature.  My husband and I had a good laugh recently over how he reacted to a minor disruption to his morning routine.  When my husband’s eyes became irritated he went to see his optometrist.  The optometrist prescribed eye drops that my husband needed to put in his eyes in the morning and wait at least a half hour before putting in this contacts.  With a stunned look on his face my husband said to his optometrist, “If I don’t put my contacts in the first thing in the morning it will upset my whole routine.” The optometrist looked at my husband with a big grin, flashed opened his hands by the sides of his head and said, “CHANGE!”

What a concept – CHANGE – it seems so simple but is not so easy especially when you have been doing things a certain way for a long time.   Fortunately, you do have choices.  You can continue to do what your have always done and get the same results – or, you can “CHANGE” for the better!!  Of course, habits are easy and change is difficult – many find that a financial counselor can help them overcome their negative money habits.