6 Steps to Change Your Spending Habits
Know how habits are formed In his book The Power of Habit, Charles Duhigg explains that habits go through a cue-routine-reward loop. First, something cues or triggers us to take an action. We go through the routine of that action, and we get a reward. To use an example from Financially Fearless, let’s say you have a habit of spending $5 on a snack every day at 4:00 p.m. You have to take a step back and understand what your cue is. Are you hungry at that time? In need of a break from work? If the real reward is…
