What would happen if you started to view your relationship with money as a journey through different regions, each one bringing you closer to your destination of financial well-being? Let’s embark on that trek together, calling each spot on the journey a stage of change.
As we start off on this exploration, it’s crucial to understand that a model developed by two psychologists, James O. Prochaska and Carlo DiClemente, will be our guiding map. They created this model, the Stages of Change, to explore why some folks manage to quit unwanted habits on their own, while others may need a little more help. The model can shed light on almost any behavior—whether it’s someone trying to quit smoking or start exercising more—but for our purposes, the behavior is managing spending.
The Stages of Change model explains that transformation doesn’t happen all at once but rather in phases over time.
It describes the stages people go through in the process of change. Different strategies can be used at each stage to help folks move on to the next one.
Let’s look at the stages, see how they apply to spending, and use our insights to move towards a life of financial peace, abundance, and possibilities.
Understanding the Stages
On our roadmap to managing problematic spending, we see the territories we’ll have to pass through:
Precontemplation
People in the first stage, precontemplation, don’t see a need to change their behavior right now. They may not even be aware that their spending habits are problematic. They might be in denial or underestimate the impact of their buying behavior on their financial wellness.
To illustrate, let’s look at the case of Sarah, a young professional who constantly splurges on designer handbags. Unaware of her mounting credit card debt, she believes her shopping sprees are just a way to treat herself.
Contemplation
In the contemplation stage, folks start to think about changing their behavior in the future. They recognize that their spending is causing issues, but they might feel ambivalent about making a change. They acknowledge the problem but may be hesitant to take action.
John is an example of someone in the contemplation stage. He realizes his impulsive gadget purchases are straining his budget. Despite knowing his spending pattern is an issue, he’s torn between the enjoyment of new tech and the financial strain his buying behavior causes.
Preparation
In this stage, people decide to transform a behavior. Now aware of the need for change, they get ready to take action. They may start researching financial planning techniques or seeking advice on curbing their spending.
For example, Maria decides to attend a financial planning workshop after acknowledging her compulsive online shopping. She’s actively seeking tools to help her prepare for a spending overhaul.
Action
This is the stage of committed change. People here are putting strategies into practice to control their spending, whether it’s by creating a financial plan, seeking professional help, or establishing healthier spending patterns.
As a case in point, Mark commits to a cash-only spending system to break free from his habit of maxing out credit cards. He’s taking concrete steps to transform his impulsive spending behavior.
Maintenance
After making significant changes, people in the maintenance stage work to sustain their new positive spending habits. They’ve put in place a solid plan to prevent and rebound from any lapses into their old unwanted patterns.
For instance, Emily, who successfully tackled her compulsive buying, regularly practices mindful spending, attends support groups, and stays connected with her financial goals to maintain her newfound way of life.
Termination
In the termination stage, people have fully changed their behavior and don’t plan to go back.
Consider Lisa, who has embraced her new cash-only spending system and no longer feels the urge to buy things she doesn’t need. Not only has she broken free from her old habit of maxing out credit cards, but she’s also built a healthy relationship with money. Lisa is confident in her ability to maintain this change and has no fear of relapse.
Change is a process, and migration between stages is part of it. Often the progress will be forward, and sometimes it will be backward. Both are natural. The key is to keep your eyes on the prize. The ultimate outcome is to reach the point where the desired behavior of managing your spending becomes a regular way of life.
Reap the Rewards of Transforming Your Spending
Understanding and applying the Stages of Change Model to your spending habits can have a lot of upsides:
- Self-Awareness: Reflecting on your current stage of change can boost your self-awareness. You’ll get a better grasp of what’s going on with your spending habits and how they’re impacting your life.
- Personalized Strategies: Each stage of change requires its own line of attack. By identifying your current stage, you can choose the strategies to manage your spending that are most effective for you at this time.
- Progress Tracking: The model provides a clear roadmap for change. You can track your progress as you move from one stage to the next. This feedback is incredibly rewarding.
- Reduced Guilt and Shame: Understanding that change is a process can help reduce feelings of guilt or shame that often come with problematic spending. The model makes it clear that the path to change has multiple steps and occasional detours.
- Empowerment: In the end, using the Stages of Change Model empowers you to take control of your buying habits. It’s a tool that supports you in making positive changes at your own pace.
No doubt, this path to financial well-being offers many potential benefits.
Recognizing Your Current Stage
As you read this post, I invite you to reflect on your spending habits. Consider where you might be in the Stages of Change Model and how you can use this understanding to your advantage.
- Precontemplation: Is it possible you’re unaware there’s a problem with your spending?
- Contemplation: Have you started to think about the need to change the way you spend?
- Preparation: Are you making plans to change your buying behavior in the near future?
- Action: Have you started taking steps to change your spending habits?
- Maintenance: Are you working to maintain changes you’ve made in your spending patterns?
- Termination: Have you successfully phased out your impulsive or compulsive buying for the long run and have no worries about going back to your old lifestyle?
Remember, change is a process, not an event. It’s normal to move back and forth between stages. What’s important is to stay on a path forward towards healthy, sustainable financial habits. As you reflect on these stages, where do you see yourself? What steps can you take to move to the next stage?
Strategies for Each Stage: Actionable Steps to Move Forward
The way to advance to a higher stage is by making sure that you’ve handled all the tasks in the current stage and that your new behaviors have become a solid part of your routine and identity.
- Precontemplation: Evaluate your behavior, raise your awareness about it, do some self-exploration, and consider how your current spending habits may impact your quality of life.
- Contemplation: Define the decision you have to make, evaluate the pros and cons of changing, resolve ambivalence, choose change, and cultivate new, positive expectations for outcomes.
- Preparation: Identify obstacles, look for social support, list skills required for change, come up with helpful change strategies, and take manageable first steps.
- Action: Work on changing things in your environment that trigger both wanted and unwanted behaviors. As well, continue to get help from friends, build confidence to handle problems, practice coping with the complex emotions that can happen with change, and remember the good things that will come in the long run.
- Maintenance: Arrange for follow-up support to continue your new behavior, develop new skills for maintaining progress, and create a plan for handling lapses and getting back on track.
- Termination: Recognize and celebrate your new way of life on an ongoing basis and keep up your high level of confidence in your new identity.
To change your spending habits for the better, practice understanding, planning, and acting on the tasks specific to your level. Each stage has unique tasks and goals that will guide you through the process and help you overcome the challenges along the way.
The Importance of Perseverance and Self-compassion
Change isn’t easy. Perseverance and self-compassion play pivotal roles in helping you navigate through the stages of change, especially when dealing with spending. Here’s why each of these qualities is key:
Perseverance is crucial…
To overcome setbacks. Having perseverance means you stay focused on managing your spending, even when faced with temptations or slip-ups.
To maintain consistent effort and commitment. Perseverance strengthens your commitment to reduce impulsive buying by helping you learn from setbacks and stay dedicated to your goals despite challenges.
To reach long-term success. Financial well-being is a journey, not a destination. Perseverance allows you to stay on course, continually adapting and refining your approach to maintain positive spending habits in the long run.
Self-compassion allows you…
To embrace imperfection. Change involves making mistakes and learning from them. Self-compassion lets you accept your imperfections without harsh self-judgment, creating a more positive and supportive frame of reference.
To reduce shame and guilt. Problematic spending can be accompanied by feelings of shame and guilt. Self-compassion can help you accept that everyone faces challenges, and it’s okay to seek help and learn from your experiences.
To create sustainable change. Being kind to yourself during the ups and downs of the change process creates a healthier emotional environment. This supportive backdrop helps you to persevere and make sustainable changes.
By weaving perseverance and self-compassion into the fabric of the change process, you’re better equipped to navigate the challenges, maintain motivation, and foster a sustainable transformation in your buying habits.
Alana’s Story
Alana was a regular person with a regular job, but she had a problem—she was always in debt. She was in the precontemplation stage, not realizing that her spending habits were the root cause of her financial woes.
One day, she received a credit card bill that shocked her into the contemplation stage. She started thinking about changing her spending habits.
In the preparation stage, she made a financial plan and set a goal to pay off her debt.
When she entered the action stage, she started living by her financial plan, cutting back on unnecessary expenses, and paying off her debts. At first it was hard, but she stuck with it.
Eventually she reached the maintenance stage, where she continued to live within her means.
Finally, in the termination stage, she was no longer tempted to overspend and had completely transformed her financial habits. She graduated to a greater sense of ease, after freeing herself from the cycle of consumerism, out-of-control expenses, debt, and overwork.
Alana’s story shows how the Stages of Change model can help anyone overcome their spending problems and achieve financial stability and satisfaction.
Moving Forward
Embarking on the journey to transform your relationship with money is a courageous move, and understanding the Stages of Change is your compass for success. Each stage offers a new opportunity for self-discovery and growth, allowing you to tailor your strategies according to your readiness to embrace change.
Please, always keep in mind that the path to financial empowerment is not a one-size-fits-all expedition. It’s a dynamic process that involves traveling at your own pace.
Whatever stage you may find yourself in, these are guideposts, not rigid rules. Embrace change with an open heart and a curious mind, recognizing that setbacks are stepping stones, not roadblocks. By customizing your approach and staying true to the principles of perseverance and self-compassion, you’re not simply managing money; you’re reclaiming control of your financial and holistic destiny. May the transformative power within you guide you toward a future of peace and security as you journey through the Stages of Change.
Resources
I hope there’s a useful takeaway for everyone who reads this post–whether you have a spending challenge or not. If you do struggle with spending, or care for someone who does, here are some resources that may help.
Spenders Anonymous is “a community of individuals sharing our experience, strength, and hope as we work toward clarity in our relationship with money” using a 12-step approach. The group offers in-person and phone meetings.
Debtors Anonymous. Problematic buying can lead to heavy debt. Debtors Anonymous offers support through literature and podcasts as well as face-to-face, phone, and in-person 12-step meetings.
Shopaholics Anonymous Facebook Group. This group has over 1,700 members. It’s billed as “a safe place to find support and get control of your spending habits” and as “a judgement free zone where you can openly talk about your experiences and feelings without any negativity.”
For referral to treatment facilities, community-based organizations, and support groups, call SAMHSA’s National Helpline at 1-800-662-HELP (4357) 24 hours a day, 365 days a year. This service supports folks facing mental and/or addiction disorders and their families.
Finally, please check out my free special report, 5 Things that Made Releasing My Spending Habit Take 5X as Long as It Should Have (no sign-up required). It’s the story of what my own spending behavior cost me and how I was able to come back stronger than ever—even if it took me a while to figure out how to make that happen. In the report I share the mental adjustments that liberated me from my problematic spending pattern. My goal in telling my story is to demystify the process, spark a micro-shift in perception, and share some tips you can try right away.
Start or Join a Conversation
Many different perspectives are possible about how the Stages of Change can be used to manage problematic buying. I’d love you to share yours here. If you don’t already have an opinion at the top of your mind, consider sharing your views on one of these questions:
- Which stage of the Stages of Change resonates with you the most when reflecting on your own journey (or that of someone you know) in managing buying habits?
- What strategies aligned with the Stages of Change have been most effective in fostering positive changes in your spending behavior (or that of someone you know)?
- Have you encountered any challenges or successes while applying the Stages of Change to address your spending habits? What insights can you share with others on a similar journey?
Do you have a question that wasn’t addressed in the post? Comment below, and I’ll give you my best answer.
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Notice
This post is for educational purposes only and is not legal, financial, psychological, or any other type of professional advice. You should consult your own attorney, financial advisor, health provider, or counseling professional concerning any issues in these areas of expertise.
Please understand that facts and views change over time. Posts reflect the author’s understanding at the time of writing, as well as the perspectives of external sources for this post. While maintained for your information, archived posts may not reflect current conditions.
Photo Credits
1 Getty Images
2 Chris Lawton
3 Ross Findon
4 Amin Oussar