In the past decade and a half, there has been an uptick in fascinating research conducted on positive psychology, habits, and willpower.
Many experiments have scrutinized different parts of participants’ lives, such as how often they go to the gym, how many cigarettes they smoke, and how much fast food they eat.
A specific study caught my eye in which researchers conducted a 4-month long money management experiment.
The results?
Working on their willpower muscle in one area of their life improved their ability to resist temptation in all other aspects of life.
AKA, consistently tracking your finances has benefits that improve every area of your life.
Let’s get into more of this research and the study that was conducted. But before we do, you’ll need a tool to meticulously track your finances to feel the benefits of this research.
WHAT DID THEY DO
In 2006, Australian researchers, Megan Oaten and Ken Cheng, sought to answer the question, “Is willpower a muscle that can be strengthened by exercise over time?”
At first, they recruited twenty-four people ages 18-50 who were certified couch potatoes and put them through a workout program.
Week over week, these people would force themselves to workout, using more willpower each time.
After two months of this routine, the participants were in better physical shape. They also smoked less, drank less caffeine and alcohol, watched less TV, and were less depressed.
Maybe, Oaten and Cheng wondered, those results had nothing to do with willpower. Maybe physical exercise just makes people happier and less hungry for fast food?
Back to the drawing board!
The researchers decided upon a similar experiment in which twenty-nine people were enrolled in a money management program.
They were to deny themselves little luxuries, such as eating out and going to the movies (Hello, No Spend January!), and were to keep detailed logs of everything they bought.
After four months in the program, people’s finances improved.
Though arguably more surprising, was that people also smoked less, drank less alcohol and fewer cups of caffeine, and ate healthier diets.
As participants strengthened willpower in one area of their lives – in a money management program – that strengthened willpower spilled over into how they ate or how hard they worked.
Once the willpower to track their finances became stronger, it touched everything.
IMPROVING YOUR WILLPOWER
This research proves that developing the habit of managing your money will change your life.
You’ll get better at regulating impulses and resisting temptation. You’ll notice that you’re more focused.
More focused on achieving the goals that bring you the life you want to live.
LIVE A BETTER LIFESTYLE
As the study exemplified, you’ll start to eat better and treat your body right when you increase your willpower to manage your finances.
Your ability to resist impulse and temptation will inevitably reduce the amount of unwanted things that you are bringing into your home.
You’ll start to make better use of your time and fill your days productively.
Thus, you’ll be calmer in managing your thoughts and actions – more than most of your peers.
IN CONCLUSION
The ability to increase your willpower through consistent money management will regulate your impulsive and emotional financial behavior.
This insightful study shows that if you can get over the short-term uncomfort of tracking your finances weekly it will lead to positive long-term benefits in your life.
Managing your money has unexpected effects on all aspects of your life. It will make you more emotionally resilient, develop willpower, and lead to a healthier life full of better decisions.
So strive to cultivate a habit of managing your finances in 2024.
I tie my practice with the habit of drinking coffee in the mornings on the weekends.
Track how you spend your money and reflect on how you can improve it.
I promise you that the results will be far better than what’s written in this newsletter.
It has worked brilliantly for me and is how I plan on saving over $30,000 this year. Grab the budget spreadsheet and get started improving your willpower today.
