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Change Your Money Habits in Two Steps

Updated: Dec 4, 2023




From "I Want" to "I Am": The Power of Identity in Creating Habits That Stick


"I AM a person who prioritizes my health and regularly visits the gym." Repeating this statement has become a daily ritual for me in the past few months. So far I’ve been doing well! Going to the gym, eating more greens, the whole nine yards.

Make no mistake, health has been a priority for me in previous years too. I would tell myself something similar, “I WANT TO BE someone that prioritizes my health”. Unfortunately, the new habits never stuck.


Change Your Identity


It was a simple change of language. But why is "I am" more powerful than "I want to"?

According to James Clear's book "Atomic Habits," the language we use to describe our habits significantly affects our identity. Saying "I want to go to the gym" implies choice; while saying "I am someone who prioritizes my health and visits the gym" reinforces that it's a core aspect of who we are and something we do consistently. Once we change our identity to align with ideal traits that we’re seeing, it becomes easier to align our actions accordingly too.


Besides using “I AM” instead of “I WANT TO”. You can also try joining a community with similar habits such as a local group or a subreddit, surrounding yourself with people who have the habits you desire, or changing your appearance to reflect the new person you are.


Celebrate Small Wins


Identity change is just the first step in transforming a habit. The complete process involves two steps:

  1. Change your identity

  2. Prove it with small wins

Small wins create momentum, making it easier to maintain the new habit in the long run. With each victory, you'll feel empowered to tackle bigger challenges and make the habit a permanent part of your life. It closes the circuit of creating new habits.


Getting Better with My Money

In daily practice to “getting better about my money”, it can look like this. If you struggle with saving money for the future, instead of saying "I want to save 10% of my income," say "I am someone who prioritizes saving for my future and saves 10% of my income."


Once you establish this as your identity, start small and work towards your goal. You can set up automatic transfers of even $100 a month from your paycheck or business account to your savings. See? It was not as hard and scary and you thought. Repeat this process and layer on another small step. Don’t forget to celebrate your progress as you reach each milestone. Before you know it, you truly are good with money.


Remember that habit change takes time and effort, so be patient and persistent. If you face any setbacks, get back on track and continue. Soon, your new habit will become a part of your identity, and you'll be well on your way to success.



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