December Financial Fitness Challenge�Get Ready to Change

The old joke about how many psychiatrists does it take to change a light bulb ends with the line, But the light bulb really has to want to change. It turns out that's no joke. Or maybe the punch line should be, But the light bulb has to really be ready to change.

Readiness to change is the key to success at making a change. It's worth thinking about as we approach the New Year and, perhaps, consider making some resolutions about how we manage money.

For a few decades now research has shown that those who successfully change their behavior move through a series of stages, and typically cycle through those stages a number of times, before achieving success.

There is a season

The cycle of change idea was identified by psychologist James O. Prochaska and colleagues. He determined that each stage uses different tools. His model suggests that you just set yourself up for failure if you set goals you're not ready for. Or, say you set goals you've already attained; that only postpones success. The better you understand where you are in the change cycle, the better you'll be able to set realistic goals and identify effective action steps.

Prochaska's book, "Changing for Good," describes these stages, summarized by the University of Minnesota Life Science Foundation:

Precontemplation. "People at this stage usually have no intention of changing their behavior, and typically deny having a problem. Although their families, friends, neighbors, doctors, or co-workers can see the problem quite clearly, the typical precontemplator can't."

Precontemplators resist change. They often are demoralized and don't want to think about their problem because they believe the situation is hopeless. "There is certain comfort in recognizing that demoralization is a natural feeling that accompanies this stage�and in realizing that if you take yourself systematically through all the stages of change, you can change."

Contemplation. " 'I want to stop feeling so stuck.' Those simple words are typical of contemplators. In the contemplation stage, people acknowledge that they have a problem and begin to think seriously about solving it. Contemplators struggle to understand their problem, see its causes, and begin to wonder about possible solutions."

People in this stage may have vague plans to make changes but often are not yet ready to take action. Many people remain in the contemplation stage for years.

Preparation. Most people in the preparation stage are planning to make changes within the next month. An important first step is to make their intention public. "But although those in the preparation stage are committed to action, and may appear ready, they have not necessarily resolved their ambivalence. They may still need to convince themselves that this is the best step."

This last-minute resolution is necessary. People who cut the preparation stage short reduce their chances of success. It's important to develop a firm, detailed scheme for action to carry you through.

Action. "The action stage is the one in which people most overtly modify their behavior and surroundings. They stop smoking, remove all desserts from the house, pour the last beer down the drain, or confront their fears. In short, they make the move for which they have been preparing.

"Action is the most obviously busy period, and the one that requires the greatest commitment of time and energy. Changes made during the action stage are more visible to others than those made during other stages."

It's important to realize that, while the action stage is the one that usually receives the most recognition, it's not the only stage during which you can make progress toward overcoming your problem.

Maintenance. In the maintenance stage, you consolidate the gains you made in the action stage and work to prevent relapses.

This stage is a long, ongoing, and critically important process. We all know someone�or may be someone�who paid off all credit cards, but charged them back up to the max in just a few months. Successful maintenance requires active alertness.

Termination. This stage is the ultimate goal. Here, your former addiction or problem no longer will present any temptation or threat. You will not need to make any further effort and will exit the cycle of change.

Some experts believe you cannot terminate certain problems but can only keep them at bay.

Financial Fitness Challenge

The people at your credit union bring you this Web site and many other tools to help you make the most of your financial resources. The Financial Fitness Challenge examines ways to make better financial habits all year long. When you're ready, we'll be here.

Don't forget to register for the Financial Fitness Challenge. Each month we'll randomly select five winners to receive $50 Visa gift cards; we'll choose each month's winners only from that month's entries, so enter often.

ST
Susan Tiffany, CCUFC
[email protected]

Published December 7, 2009