How to Actually Make Progress With Your Money This Year

Behavioral Challenges

Changing money habits is a challenging process due to psychological resistance and external pressures. Rachel Cruze and Henry Cloud discuss how internal resistance and external obstacles, like peer pressure, can hinder financial behavior change. Cloud emphasizes the importance of community support in overcoming these challenges:

It's easy to stay in the old, because that's how we're wired. You continue to do something that gets stronger and stronger and stronger.

--- Henry Cloud

Acknowledging these resistances is crucial for creating new, healthier financial habits 1 2.

   

Role of Community

Community support plays a vital role in changing financial behaviors. Rachel Cruze highlights the need for vulnerability and accountability within a supportive network to facilitate change. Henry Cloud compares this to the practices of high achievers who rely on strong teams for success:

The highest performers, none of them try to do this by themselves.

--- Henry Cloud

Having a community not only eases the process but also provides the necessary encouragement and accountability to sustain new habits 1 3.

   

Psychological Impact

Our upbringing and psychological factors significantly influence financial decisions. Rachel Cruze and Henry Cloud explore how childhood environments shape money mindsets, emphasizing the importance of understanding these influences. Cloud explains that both temperament and nurture play crucial roles:

Our temperament comes into the world, starts to live life, and it lives life in this body of relationships.

--- Henry Cloud

Recognizing these factors can help individuals address underlying issues and make informed financial choices 4 5.