“Your Pen Can Be Your Best Frien':” Journaling and Money Metacognition

The August issue of American Journal of Preventive Medicine will publish Kaiser Permanente’s Center for Health Research findings which conclude that keeping a food diary can double an individual’s weight loss effort Similarly, a study in The New England Journal of Medicine uncovered that those that did not jot down their food intake on a daily basis underestimated their caloric levels by an average of 1,050 calories.

Generally speaking, the act of journaling—the process of reflecting and thinking metacognitively on a particular set of behaviors and decisions— is an excess-management tool that can prove successful for not just overeaters, but for overspenders as well.  Many financial coaches encourage overspenders to keep meticulous notes about their purchases in order to identify patterns in their spending habits, holes in their budgets, and areas for money management improvement. Less attention is paid to the psycho-emotional triggers that provoke and incite extraordinary consumption.

However, when it comes to embarking on the road to financial recovery, unearthing the why of spending, is just as important as detailing the what of spending. Include observations, anecdotals, and notes on the nature of your financial environment, external spending triggers, and saving incentives as an integral step toward achieving a fuller, more holistic, and more realistic picture of your spending persona.

 

1. Detail the Number and Nature of Income-Generating Establishments in Your Immediate Spending Environment.

There is a strong connection between t the nature of our immediate commercial environment and what we spend our money on.  I live in a predominately black, working class community in Queens and the appeal to spend my money is geared toward acquiring certain products and services over others.

 Within a three-block radius, there emerged a strong message about the options that I have in my neighborhood as a consumer.  I counted 5-7 different storefront churches, 3-5 barber/beauty salons, 5-7 franchised or “mom and pop” fast food restaurants, 2-4 corner stores (or bodegas), 2 supermarkets, 1 library, 1 check cashing place, and a liquor store. Implicit in the disproportionate representation of certain types of stores and the all-together absence of others (i.e. community centers, bookstores, doctor’s offices, banks), is that money in my community should not go beyond catering to personal wants; money in my community is better used for depreciable items, not for investments and savings; money in my community will be used (ironically enough) toward my nutritional detriment.  The next time you take a walk through your neighborhood, take note of what your commercial district is telling you about money.

2. Track How You Spend with Your Friends.

Are you a teacher, social worker, or not-for-profit administrator that is expected to spend as freely as your f investment banker and corporate lawyer friends at parties, social gatherings, or restaurants?  Are you an “up and coming” young professional with a lot of “starving artists”, “down-on-your-luck” friends that is expected to cover their expenses when it comes to most social outings? Writing down how your financial behaviors shift when dealing with friends will illuminate patterns; this data, if used, can shape your future interactions and money-related dealings with them. 

3. Monitor Your Emotional Triggers While Overexposed to Media Antics

The tendency to overspend, like the tendency to overeat, is rooted in our emotions. Despite what people would like to think, money is a matter of the heart and soul. Our belief systems and our learned behaviors from friends and family dictate a lot of our spending habits. But you know what especially drives our consumption? Big ‘ol juicy insecurity! Yes, the fear that we just missed the mark, are not quite as good as (fill in the blank), and are inherently flawed. Overexposure to big business media antics compounds this fear and drives you to spend. Concretely, while watching television, pay close attention to how you feel after you imbibe the lies that media try to extol. Are you insecure about your beauty? If so, monitor how you feel after sex is sold to push new make-up products, gym memberships, and diet systems. Are you insecure about the amount of money that you make? Be cognizant of how you feel about yourself and your financial priorities after watching commercials for luxury vehicles, reality shows that flaunt wealth and fame, or movies that romanticize excess.