The Upside of a Bad Money Behavior

This week I’ve invited my friend, Kathleen Burns Kingsbury to be a guest blogger.  She and I have been chatting about money and how it effects our clients every month for years now.  As you can tell from her words below we clearly have a similar take on how money thinking stymies us! See more about her, at the end of the blog.  If you’d like to check out her fascinating new book:  “Breaking Money Silence®” 

Have you ever wondered why you don’t always act in responsibly ways when it comes to money? Or maybe you are financially fit and find it hard to understand why a loved one seems to spend or invest money in an irrational manner. The reason is simple. There is an upside to every bad money behavior.  That is why it is so difficult to change poor habits, including unhealthy financial habits. The short-term gain keeps you coming back for more.

Dana is a great example. She loves to buy expensive gadgets, but knows that she spends too much of her take home pay on these toys. Dana knows that this spending behavior is getting in the way of her goal to save for a down payment for her first home. When asked, Dana tells me that she wants to stop overspending on electrics.  But her actions tell a different story.

What Dana doesn’t realize is that buying something new gives her a rush, makes her feel good after a long week at work, and boosts her self-esteem. All her friends fondly call her “the gadget queen.” There is a big upside to this unhealthy money behavior. Until Dana appreciates the benefits of this habit, it will be hard, if not impossible to change.

Do you identify with Dana? Do you have a habit or behavior that you would love to stop but find it difficult to let go of? If so, here are some inquiries for you to consider.

What is the short-term benefit of this money behavior?

As a trained behavioral change specialist, I always look for the brilliance in the bad behavior. In other works, what are the benefits of staying stuck or not changing? In Dana’s case not changing her spending habits helped her feel good about herself and good in the moment.

What would it be like to not receive this short-term benefit?

The first step in changing an unhealthy habit is realizing how it serves you. In Dana’s case, the bad habit was paired with feeling good and special. If she is going to save more money, and spend less money she will have to grieve the loss of the excitement she feels each time she buys the latest gadget. This is not an easy task, but possible. It is easier to sit with uncomfortable feelings once you label them and know that feeling them is temporary and part of what will ultimately help you heal. 

What other coping strategy can I use to get these needs met?

Dana’s desire to feel good about herself is not unhealthy and in fact, is a good thing. It is just that how she is going about it is hurting her financially. When you want to change a habit make sure you find other ways of meeting your underlying need. In Dana’s case, she started a blog about gadgets. This way she didn’t have to buy every toy, but could stay up on the latest trends in electronics. She also was still seen as “the gadget queen” by her friends and that was an important part of her identity.

Asking these three questions will help you identify the upside of any unwanted money habit. While the answers are not a magic wand, they do provide valuable data to aid in the change process. So the next time you are beating yourself up for a bad habit, instead wonder about the upside.

Kathleen Burns Kingsbury is a wealth psychology expert, founder of KBK Wealth Connection, host of the  Breaking Money Silence® podcast, and the  author of several books including How to Give Financial Advice to Women and How to Give Financial Advice to Couples. Her new book, Breaking Money Silence:  Shatter Money Taboos by Helping Your Clients Openly Discuss Their Finances was published September 30, 2017. For more information, visit www.kbkwealthconnection.com.

Thanks Kathleen, I love having you come play!

Shell Tain, The Untangler