Rewire Your Relationship With Money | Wendy De La Rosa

1. Shift to Environmental Change

To effectively change financial decision-making, focus on altering your environment rather than solely relying on willpower or trying to change yourself, as environmental changes are often easier and more impactful.

2. Break Financial Shame & Taboo

Internalize that external systems often contribute to financial struggles, not just personal failings, to release paralyzing financial shame and encourage open discussion about money.

3. Dedicate a Financial Health Day

Dedicate a specific ‘financial health day’ to address important financial tasks like consolidating accounts or switching banks, recognizing that prioritizing this time is an act of self-love and essential for progress.

4. Design Environment for Imperfection

Assume you will occasionally fail in financial discipline and proactively design your environment with barriers and defaults that support your goals, rather than relying solely on perfect self-control.

5. Automate Savings & Spending Limits

Use technology to set up automatic savings rules (e.g., save a percentage of any paycheck over a certain amount) and spending limits on credit cards by category or retailer, creating barriers to spending and automating good habits.

6. Commit Future Windfalls to Saving

Leverage the ‘future perfect self’ bias by committing a percentage of anticipated future income (like tax refunds, bonuses, or extra paychecks) to savings before you receive it, as people tend to commit more when the sacrifice isn’t immediate.

7. Control Small, Frequent Purchases

Address ‘death by a thousand cuts’ expenses, like food delivery, by either deleting the apps or linking them to a prepaid debit card with a set monthly limit, creating a natural barrier to overspending.

8. Prioritize Single Savings Goal

Concentrate on achieving one financial savings goal at a time (e.g., emergency fund, house renovation) rather than splitting efforts across multiple goals, as this approach leads to greater overall savings.

9. Leverage Fresh Start Moments

Utilize ‘fresh start’ transition moments like birthdays, the beginning of a new month, or the new year to set and commit to new financial goals, as motivation to change is naturally higher during these times.

10. Practice Self-Advocacy & Negotiation

Cultivate the habit of negotiating for better terms in various financial transactions (e.g., mortgages, raises, service providers) and advocating for yourself, understanding that the worst outcome is a ’no’ and it’s not a reflection of your worth.

11. Negotiate Credit Card Terms

Proactively call your credit card company to negotiate a lower interest rate or change your payment date to better align with your financial situation, as your credit profile likely improved since initial application.

12. Schedule Financial Dates with Partner

Schedule dedicated ‘financial dates’ with your romantic partner to discuss goals, share financial situations (like credit scores), and ensure you are on the same page, fostering connection rather than judgment.

13. Discuss Money with Friends

Initiate conversations about money with friends by sharing your own financial struggles or questions first, as personal vulnerability encourages others to open up and allows for mutual learning and support.

14. Reflect on Parental Money Influence

Reflect on how your parents’ relationship with money and your childhood financial experiences have shaped your current financial mindset and decision-making, as these early influences can have long-lasting effects.

15. Limit Payment Frequency

If you have the flexibility to choose your payment frequency, opt for less frequent payments (e.g., monthly instead of daily) to avoid feeling artificially richer and overspending on small, frequent purchases. Avoid paying fees for early access to your paycheck.

16. Install Ad Blockers

Install ad blockers on your devices to reduce constant exposure to advertisements that are designed to encourage spending, thereby creating an environment that supports saving.

17. Cultivate Investor Identity Early

For parents, actively cultivate an ‘investor identity’ in children from a young age by giving stock certificates as gifts and discussing ownership, aiming to instill a positive and informed relationship with investing.