Mastering Self-Control: How to Achieve Your Financial Goals with Science-Backed Strategies

We all have financial goals, whether it’s saving for a dream vacation, buying a new home, or securing your retirement. But what often stands between us and our financial aspirations? Self-control. The ability to resist immediate temptations for the sake of long-term financial gain can be challenging. However, with the right strategies, you can master self-control and take significant steps toward achieving your financial goals. In this blog, we’ll explore science-backed techniques to help you strengthen your financial discipline.

1. Ensure it is a goal and not a dream

We all have aspirations and dreams, but when it comes to achieving financial success, it’s essential to differentiate between what’s a dream and what’s a goal. Dreams are often lofty ideals that you do not have control over and may or may not be attainable, while goals are concrete objectives that you have control over that you can work towards. Your first step in mastering self-control for financial success is to ensure that what you’re pursuing is a goal and not just a dream. Refer to my book Unchained which gives you a comprehensive approach and the differences.

2. Understand the why you want to achieve this financial goal

Every financial goal should have a purpose, a ‘why’ that drives your desire to achieve it. Understanding the underlying motivations behind your financial aspirations is crucial for maintaining self-control when faced with temptations or challenges. Take the time to reflect on why you want to achieve your financial goals, and let this understanding fuel your determination.

3. Identify any financial limiting beliefs that you need to eliminate

Self-control isn’t just about resisting external temptations; it also involves managing internal obstacles. One common internal hurdle is limiting beliefs about money. These beliefs, often rooted in past experiences or cultural influences, can undermine your financial self-control. Identifying and eliminating these limiting beliefs is essential for maintaining discipline on your financial journey.

4. Identify any unsupportive habits that you need to stop

Habits play a significant role in our daily lives, and they can either bolster or hinder our financial progress. If you have habits that don’t support your financial goals, they can sabotage your efforts. It’s crucial to identify any unsupportive habits and take steps to stop them. The key is to replace these habits with ones that align with your financial objectives.

5. Understand the Science of Self-Control

To effectively enhance self-control, it’s essential to comprehend the science behind it. Research suggests that self-control operates like a muscle. It can become fatigued with use but can also be strengthened through practice. Knowing that self-control is a finite resource can help you allocate it wisely.

6. Set Clear and Specific Financial Goals

Start by setting clear and specific financial objectives. Whether it’s saving a certain amount of money, paying off debt, or investing for the future, precise goals provide direction and motivation. It’s easier to exercise self-control when you have a well-defined target in mind.

7. Break Down Large Goals into Smaller Steps

Large financial goals can feel overwhelming, which may lead to a lack of self-control. Break them down into smaller, manageable steps. Achieving these smaller milestones can provide a sense of accomplishment and keep you motivated.

8. Use Implementation Intentions

Implementation intentions are specific plans that outline when and where you’ll take action toward your goal. Research shows that individuals who use implementation intentions are more likely to follow through with their intentions. For instance, instead of vaguely aiming to save money, set a clear intention like, “I will transfer £150 to my savings account on the 1st of every month.”

9. Automate Your Finances

One of the most effective ways to exercise self-control is to remove the need for it altogether. Automate your finances by setting up automatic transfers to your savings or investment accounts. This ensures that a portion of your income goes toward your goals before you have a chance to spend it impulsively.

10. Track Your Progress

Regularly monitoring your financial progress can help reinforce self-control. Use budgeting apps or spreadsheets to track your income, expenses, and savings. Visualizing your achievements can motivate you to stay on track.

11. Practice Delayed Gratification

The famous Stanford marshmallow experiment demonstrated the power of delayed gratification. In the study, children who were able to wait for a second marshmallow ended up with more significant rewards. Apply this principle to your financial decisions. Delay immediate gratification for more substantial long-term benefits.

12. Seek Accountability

Share your financial goals with a trusted friend, family member, or financial advisor. Having someone hold you accountable can provide an extra layer of motivation and make it harder to veer off course.

13. Educate Yourself

Knowledge is a potent tool for self-control. Invest time in learning about personal finance, investments, and wealth-building strategies. The more you understand the potential benefits of your financial choices, the easier it becomes to exercise self-control.

14. Practice Mindfulness

Mindfulness techniques, such as meditation, can enhance self-control by increasing awareness of your thoughts and emotions. This heightened awareness allows you to respond more intentionally to financial temptations.

The Impact of Financial Constraints on Self-Control

Recent research highlights an intriguing connection between financial constraints and self-control. In a study examining willpower depletion and impulse buying, participants who were required to exert self-control in a task later demonstrated a willingness to spend considerably more on luxury items. This suggests that individuals facing financial constraints may be at greater risk of impulsive financial decisions when their self-control is depleted.

Another study conducted in rural India by Dean Spears explored the link between willpower and poverty. In this experiment, individuals from a relatively poorer village faced a challenging financial decision involving a reasonably priced popular soap brand. Participants’ self-control was tested using a handgrip exercise before and after the decision. The results indicated that those from the poorer village experienced more significant depletion of their willpower after making the decision.

In an American shopper study, it was found that poorer shoppers were more likely to consume food and drink while shopping, possibly due to the depletion of self-control during financial decision-making.

This research suggests that financial constraints can impact self-control, making it more challenging to adhere to both health and financial goals. Therefore, understanding how to strengthen your willpower and employ tools that support self-control becomes critical, especially for those facing financial constraints.

In Conclusion

Mastering self-control is a key factor in achieving your financial goals. By incorporating these science-backed strategies into your financial journey and being mindful of the potential impact of financial constraints on self-control, you can strengthen your discipline and take confident steps toward building wealth and securing your financial future. Remember, self-control is a skill that can be developed over time, and every small step forward brings you closer to your financial aspirations. Start today, and watch your financial well-being flourish.