What is Better when it comes to Money? Behavior or knowledge?

Most of us have been on a diet one time or another. Most of us have tried all kind of different methods of loosing weight. Most of have tried looking for that easy way to do it but have yet again failed. Why? Because we know, more or less, how it goes, right? To loose weight we have to burn more energy than we consume. It is fairly simple and we know so. Or we eat less or exercise more or even both at the same time.

I claim that the hard part isn’t knowing what to do, it is actually doing it!
But this post is not about diets really. It is about proper financial behavior and it is almost the same as diets and also something most of us can relate to.

When it comes to our money, most of us know what to do. Don’t spend more than you earn. And if you don’t manage to do that, you have to either cut your spending or raise your earning. Yes it is really that simple.

So if it is that simple why do we continue to struggle both when it comes to food and to money? Because it has much more to do with behavior than with knowledge. There is a big difference between what we actually know and what we choose to do with it. On one hand, I think this is really encouraging. We really don’t have to have a huge amount of knowledge in order to manage our finances the right way, On the other hand, it means that our behavior towards money is the main problem and how do we handle that?

Being aware is a great way to start. Be aware and start to take notice to how and when and on what you spend your money. It is a great place to start and teaches you a lot about yourself and the way you do things.

Setting goals and making guide lines is a great tool as well. When we have something concrete to hold on to it automatically makes it easier to stay on track.

Staying away from situations or places that you know that you have a hard time keeping within your new set goals or paying extra special attention when you find yourself in one of these places or situations.

Being patient is maybe the most import part. Change is hard and takes a lot of time to accomplice but I know that you can do it!