Are your habits costing you?
In my nearly 17 years of coaching people, I’ve learned one very important lesson. Personal finance is about more than just the dollars and cents. The numbers tell a good story but it doesn’t paint the entire picture.
Did you know that over 90% of our daily actions are controlled by our subconscious mind? This means that 90% of the time we aren’t even thinking about what we do, we just do it. So, consider how many things are you doing “just because it has been done that way?” How many choices do you automatically make because that is what you have always done?
To take this further, think about what unconscious actions are controlling your finances. Are you intentionally choosing what to do with your money or are your habits getting the best of you?
It’s so easy to fall into the autopilot trap. Let’s say every day on your way to the office you stop by Starbucks to grab your Starbucks Venti White Chocolate Mocha Coffee because the day just isn’t complete without that amazing warm cup of goodness. Over a whole year, you end up getting a total of 312 Venti’s.
6 days * 52 weeks (in a year) = 312 trips to Starbucks
312 * $6.44 (Price of your Venti Coffee) = $2,009.28
That totals to $2,009.28 per year! What could you do with an extra $2k?
Now, I am not saying you have to sacrifice your Starbucks, but I am asking you to take an inventory to see what’s costing you. Let’s say you don’t want to cut your Starbucks. Here are a few different scenarios that involve small changes with big savings.
Scenario One:
Let’s say instead of you stopping by Starbucks 6 days a week. You decide to make your own coffee at home 3 days out of the week. If you decrease your Starbucks runs to 3 times/week this is what the savings would look like for the year.
3 days * 52 weeks (in a year) = 156 trips to Starbucks
156 * $6.44 (Price of your Venti Coffee) = $1,006.64
That’s $1,006.64 savings per year!
Now what if you invested the savings for the next 40 years at 12% interest? You would have nearly $1,000,000!! That $1,006.64 could be your path to financial freedom!
Scenario Two:
So, you really love your Starbucks, and getting your cup of coffee is special to you. Another option you have is to decide to order a Grande (4 oz less than the Venti). Just by getting a slightly smaller size, this is what would end up back in your pocket!
6 days * 52 weeks (in a year) = 312 trips to Starbucks
312 * $5.36 (Price of your Grande Coffee) = $1,672.32
That's $336.96 savings per year!
As you see, by adjusting ONE habit you could save hundreds of dollars per year AND change your entire future. My challenge for you this week is to take inventory of your habits. Find one thing you can adjust like the example above. If you need help, schedule a quick 30 minute call with me, and I would be happy to help you.
To your success!
Ericka Young
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