Money management habits

"Motivation is what gets you started. Habit is what keeps you going"

 Jim Rohn 

Each of the four brain areas has a specific task, but we need to activate all four to be successful in life and to achieve what we set out to do. With the reptilian brain we set goals and take action. With the limbic brain we create relationships, nurture them and become part of a group. With the neocortex we learn, evolve and search for solutions. And with the prefrontal brain we give meaning to our lives and work on the purpose of our existence.

The first, the most basic, is the reptilian brain and it is important to work it because here is the power, the confidence: the doing, the getting. The reptilian brain is not reflective and acts unconsciously and instinctively. It neither thinks nor feels, lives in the eternal present, and is driven by impulsivity. As our own survival is its main function, it also tries to prevent us from achieving our personal goals because it feels safe only on familiar ground: when it is not in control of the situation, it feels threatened and prefers to flee and run away rather than face something new. If it is used to acting in a certain way because of the habits we have adopted, it will continue to do so as a method of protection.

But what happens when we are aware that these habits are damaging us? When you know that your diet is damaging your health? When it is clear that you are in a toxic relationship? When you think you are hooked on your mobile phone? When you know that you are spending more than you can and need? Once you recognise negative emotions (limbic brain) in the way you act, you need to change those actions in order not to fall into complaining and blaming. Making a plan of action (neocortex) and carrying it out with discipline is the only solution. But to do this, we have said that you have to find a purpose (pre-frontal brain), the reason why you are doing it: otherwise you will quickly throw in the towel because the reptilian brain will return to its comfort zone. Do you now understand how the four brains work?

The only way to turn the reptilian brain into our best ally is to establish habits so that instead of running away and not wanting to leave its comfort zone, it helps us to achieve our goals by controlling our impulses. This requires a high level of commitment to oneself and discipline. When we understand the value of good habits and the importance of implementing them in our lives, change becomes easier.

Stephen Covey published in 1989 the best-seller The seven habits of highly effective peoplefocused on the development of personal productivity and leadership. For Covey, a person can only be truly successful in life and at work when they learn and develop a series of habits through which they are able to manage their time and prioritise each task. And although it may seem to focus on work and not on personal issues, this book is a manual for not doing anything blindly, improving efficiency, deciding what our goals are and working to achieve them without giving up. Applicable to all aspects of life and, of course, to money.

Let's remember: your numbers tell you what's going on inside, because what's on the outside is a reflection of what's on the inside. That is why Covey's first three habits are about self-mastery. They are the "private victories", the essence of character development: from the inside out.

• ProactivityTaking responsibility for your life and developing a conscious response to every situation, in accordance with your principles and values.
• Start with an end in mind: to make our lives meaningful, directing our actions to what is meaningful to us.
• Putting first things first: spending time on the activities that give meaning to our lives, prioritising what is important and not what is urgent.

These habits shape character by moving us from dependence to independence. Without private success we cannot achieve public success because we need to be consistent and motivated in everything we do every day, and that depends on us alone. As Covey says, by following these principles we can become "architects of our own destiny". Do you see how these three habits are related to the what and why of our actions?

No matter what you want to improve, you can only get there if you change yourself first; and the surest way to achieve lasting change in yourself is to develop the right habits. The reality is that we are creatures of habit, not only how we act, but also who we are. Routines define our personality and, like gravity, drive our behaviour in a specific direction. Success is not pursued, it is only attracted by the person you have become, so with discipline and dedication you can achieve whatever purpose you have in life.

Next Week: Habits, brains and their financial application
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