I’m currently reading a book called The Willpower Instinct which is where I came across the quantified self website. I’m curious to use this as a tracking journal for exploring my spending habits.
Frankly, I’m not happy with how I spend my money, and using credit card money / getting loans is completely unjustified for me.
My goal is to quit borrowing money whatsoever, but let’s make it 30 days for the sake of the experiment. I would also like to analyze my expenses at the end of the day / every 2 days and check if they were necessary and planned ahead. I already have a habit of keeping track of my expenses, but making changes requires a different habit: sticking up to my budget.
Besides that, I’m going to pay off the debt I’ve already gotten myself into. It’s so big that it’s scary and embarassing. I admit that it was my actions and decisions that led me to my financial situation. Hopefully I’m going to land a new job soon and use the raise wisely (and not start spending more).
The going-debt-free plan looks like this:
Credit card 30k
Short term bank loans 12k
Huge bank loan that I took to pay off my other debts (shouldn’t have done that 'cause I took more than I actually needed, and then I did it again and again which is how I went from 120k to —>) 413k
Debit card overdraft 25k
Borrowed from a friend 209k
I’m currently making 50k a month
I want to learn what triggers make me want to buy something and what can motivate me to stay on track. Identifying the triggers and learning to endure the frustration is potentially going to help me pay off debt. This in turn is going to be a huge stress relief and will help with anxiety coming from living in debt.
No hate please, and friendly tips would be much appreciated!
Would you agree that tracking spending decisions is analytical mind? Have you considered that if an analytical mind change was all that was needed, you would already have enough reason to change to desired behavior?
IMHE as a coach it’s critical to understand your heart/emotional brain for spending decisions. Well, and your physical brain, too. I’d ask questions, such as, “When I bought that (item1) what was I feeling?” “If I drew a Venn diagram of incidents in my life and how I experienced them in the days leading up to buying (item1) what do I observe?” “Are there values driving my decisions?” “Name them.” “Are they values that fit my current life needs and income?” “Could I have these values and wait for (item1)?” “What would waiting look like? (suspect there’d be a long pause here)” And more.
If the physical brain is largely involved, then I’d ask “What’s stopping me from getting evaluated?” “What external help could I obtain?” “Could I get help with this and retain my own sense of dignity and privacy?” And so on.
Hey, it’s really inspiring to see you take control of your finances like this! Recognizing the need for change is the first and most important step. The idea of tracking your spending habits is powerful, especially when paired with the goal of not borrowing money anymore. Analyzing your expenses every couple of days is a great way to stay accountable to your goals and make sure you’re sticking to your budget. I totally get how overwhelming it can feel, but breaking things down into smaller steps, like focusing on one debt at a time, can make the process more manageable.