Have you ever wondered about the impact your habits have on your life? Ever heard of keystone habits?
From following an eating plan to get that desired body, to the much-desired success in your company’s finances, one thing is consensual: creating a good habit requires a change in routine.
Leaving the comfort zone is an arduous task for many people, but it is necessary to make dreams come true. your company.
Were you curious to understand how you can build good habits and cause a revolution in your business? Let’s bring precious tips for this, including key habits and their importance!
Come with me and I’ll show you the key that will open the door to solve this problem!
To optimize reading for you, I leave an index below with the subjects that will be addressed:
Do my habits get in the way of my company’s finances?
One of the main habits that hinder the financial control of companies is to confuse their equity with that of the partners . This is a serious mistake! Because there is distortion in the fixed cost and this compromises the cash flow.
Don’t do that! Both assets must not mix.
Another harmful habit is not having a cash flow . To maintain your company’s financial health, you need to be aware of the money that comes in and out of your cashier.
I hope you don’t forget to always have all the receipts (both purchases and sales made) at hand. Without these, it is difficult for you to maintain clarity in the information about your company and this ends up harming your decision-making process in the future.
Don’t forget: record everything! Even small expenses should be under your control.
Tell me something: have you ever made a financial plan ? If your answer is “no,” know that this is also one of the habits that make it impossible to control your finances. Because it is through a financial plan that you will know which investments can be made, according to future receipts, and avoid unforeseen expenses.
In addition to everything that was mentioned as harmful habits, one point is extremely important: you, entrepreneur, who seeks to have a more flexible, dynamic life, with agile, accurate information, which collaborates for the assertive decision-making process, need a system of management that saves you the time spent creating spreadsheets and that promotes security in your company’s information.
We can help you!
How do habits develop?
According to Charles Duhigg, reporter for The New York Times, author of the bestseller “The Power of Habit,” the way to change what doesn’t work in your life is through understanding the construction of your habits.
I bet you’re imagining the significant changes you can promote, especially regarding your company’s finances, correct?
Stay tuned to understand the process, as it will bring great benefits to you!
The author of the book researched the subject for more than two decades and noted that, according to science, habits arise all the time because the brain seeks ways to save effort.
You must have already made those countless classic year-end promises that never come true, right?
Many habits go unnoticed because they manifest themselves involuntarily, they were built over the years, they are behavioral patterns, such as: brushing your teeth, taking a shower, etc. This process was assimilated, learned and internalized. It remained in the unconscious and consequently ended up saving cognitive efforts. Therefore, to promote new habits, it is necessary to understand why they happen and their purpose.
Habit formation happens in 3 stages:
- He leaves
- Routine
- Reward
Cue indicates which habit should be triggered and causes the brain to go into automatic mode . The Routine is how the Cue is executed. The Reward, on the other hand , is responsible for making the brain realize whether this “loop” is worth internalizing.
But after all, what would this “loop” be?
The habit loop is nothing more than the repetition of the same (it is the execution of the 3 steps, as many times). That’s when the process becomes a standard!
I bet you’ll start reviewing the bad habits you’ve had so far! The proposed “insights” are numerous.
How about seeing this concept combined with your company’s finances?
The financial trigger: how it all begins!
The habit is activated through a trigger. It is necessary, previously, that you do an examination of conscience and recognize yours.
How to do this?
The trigger is associated with a sensation, a feeling, which causes the beginning of a habit.
Imagine the following situation: you see your company surrounded by countless debts, mired in disorganization with your finances; mixes both assets; does not have a cash flow or financial plan; does not control all its inputs and outputs, aware of the smallest details; Does not keep, nor does he usually organize his notes, vouchers, etc.; It does not have a management system that can help in this process. This whole situation moves you, makes you anxious, tense.
It’s natural that you don’t feel well and want something to minimize, to compensate for all that negative feeling. This is when the worst decisions can be made. Want an example? That loan without due analysis that, instead of relieving the situation, pushes your finances into the hole.
All of this happens because this feeling seeks a short-term solution that can generate a feeling of reward, due to its thoughtless immediacy , but which is not sustainable over time (as in the loan situation, mentioned above).
However, the whole difference is there: you have the power of choice! Other than that, at this moment, you are understanding how to build habits and you will be able to break this “loop” in your life!
Your decision-making has to be conscious, analyzing all the pros and cons. Emotional lack of control can lead to numerous problems for your company’s financial health and be preponderant in generating triggers for building bad habits. Do the opposite!
Financial Action: Break the “loop!”
In the face of the frustrations that follow, you repeat the action again and turn it into a habit.
And then, as suggested, have you done a self-awareness exam and recognized the triggers that allow you to build your bad habits?
I recommend writing them down on paper so you don’t forget! Because to enter the Financial Action we need that! Financial Action
is the next step that will get you started on breaking the “loop.”
So, after a feeling, which we are considering as negative (in this context), the trigger goes off due to euphoria or frustration and an action takes place. The same can be taking out a loan without proper analysis (as in the example mentioned in the topic “Financial Trigger: where it all begins!”),
And then, even when there is no impediment that restricts the possibility of you carrying them out, you will end up sinking your company in debt.
Here’s the solution: when you pull the trigger, immediately cut it! Break the cycle and change the action!
This requires willpower, organization and information!
When changing the action, look for the one that is less costly and that brings tranquility and long-term balance to your finances. You’ll see, it’s functional!
The financial reward: success.
After the two previous steps, realizing the trigger and interrupting it with a new, constructive and planned action, comes the third and final step of the process: the reward.
By being aware of how the “loop” is built, having recognized the bad habits, their triggers and analyzed the ways of acting to interrupt them, it is necessary that you have a reward and that it is positive.
You must be wondering the “why” of this, right?
Well, according to Charles Duhigg, every time the 3 steps are repeated and the reward is emphasized, automatically the habit that is being built is reinforced and with time it becomes more and more part of you, until it becomes something Natural. Thus, a positive “loop” is formed.
Were you curious to know how to make this applicable for you?
As each company has a reality and is inserted in a different context, taking into account that the organizational culture is of paramount importance to propose forms of reward and generate positive habits, it is important that you analyze, in general, what will bring a feeling of success, not only for you, but for the whole group. Since their attitudes are reflected in the company and vice versa. Thus, after proposing such changes, there will be a considerable impact on your finances and the desired success will be achieved.
What are Keystone Habits?
The habit change will cause a “domino effect” in your life.
Keystone habits are those that promote changes in other areas that are not necessarily linked with the modified habit.
An example of a keystone habit to be cited is physical exercise. For many people, carrying out this activity in their daily lives has an impact on their emotional state, interpersonal relationships, etc.
But what about the company’s finances? A key habit that can be adopted is to take note of all your cash ins and outs.
And by the way, have you read our article on bank reconciliation ?
Does all this talk sound silly? You can bet that when you start putting this into practice you will realize the importance of building the organization habit for your business. Naturally, this will eventually be replicated to your organizational culture, and don’t be alarmed if it changes your personal life as well.
It is pure “domino effect”, the reactions end up occurring and multiplying. Next thing you know, you’ve changed and so have your company’s finances. Both towards success!
I bet you were curious to put all the tips into practice and carefully think about which habits have been harming your company’s finances, correct?
Does online accounting contribute to a keystone habit?
Imagine having detailed information about your company’s financial health in a timely manner, in the palm of your hand.
See what benefits online accounting adds to you:
- information security
- Easy and fast service
- Cost reduction
- Management system
- Quick information for decision making
As I said earlier: “keystone habits are those that promote changes in other areas that are not necessarily linked with the modified habit.”
I’m sure these benefits mentioned will change not only your company’s finances but also your life.