She Strengthens

Unlocking the Secret to Achieving Your Financial Goals

When it comes to setting goals, we’ve all heard of the importance of making them SMART. But what about the habits that support those goals? Building or breaking money habits can be a challenging task, but understanding what drives us to form habits can make all the difference.

The Four Tendencies: Understanding How We Form Habits

Gretchen Rubin’s book, Better Than Before, offers valuable insights into habit formation and the different ways people form habits based on their personalities and preferences. The Four Tendencies framework identifies four types of people:

• Obligers: Uphold commitments to others, but struggle with commitments to themselves.
• Upholders: Honor commitments to both themselves and others.
• Questioners: Excel at upholding commitments to themselves, but challenge external commitments.
• Rebels: Have no intrinsic need to uphold either type of commitment.

Recognizing Your Tendency

Understanding your tendency can help you identify the most effective approach to forming habits. For instance, as an Obliger, I’ve found that external accountability is key to my success. When I committed to a regular yoga practice, it was the external system of reserving classes that kept me on track.

Applying the Four Tendencies to Your Financial Goals

Let’s take “saving more money” as an example. How can you use the Four Tendencies to give yourself a leg up on achieving your financial goals?

• Obligers: Share your goal with someone you trust and work together to hold each other accountable.
• Upholders: Set up automatic contributions to your savings account to ensure consistency.
• Questioners: Tie your savings goal to a specific milestone or achievement that motivates you.
• Rebels: Avoid systems and find alternative approaches that work for you.

Putting it into Practice

By recognizing your tendency and tailoring your approach to habit formation, you can increase your chances of success. Take the time to reflect on your past experiences with habit formation and identify what has worked for you. With this knowledge, you can create a strategy that supports your financial goals and helps you achieve success.

Further Reading

For those interested in learning more about habits, The Power of Habit is a highly recommended read. It delves into the science behind habit formation, providing valuable insights into the process.