Adopting an Atomic Habits mindset

James Clear’s book, Atomic Habits, is a #Gamechanger. If you struggle to make habits stick, stop focusing on habit outcomes and consciously adapt your identity to be the person that aligns with your habit.

We all have habits, some good and some not. Habits are those almost unconscious behaviour patterns we have... so, how do we build better habits?

In his book Atomic Habits, James Clear identifies two types of habits: outcome-based and identity-based. Understanding the difference and reframing your mindset will help you adopt an atomic habits mindset and ensure your desired habits stick.

Outcome-based habits

These habits have a specific endpoint we’ll reach, where our focus is on the outcome. Outcome-based habits generally only last for the short term; as soon as we’ve achieved that outcome, we’re likely to revert to our old ways. If we’re too focused on the result, we may give up when we don’t see fast progress.

So, how do we ensure that our habits stick? We form identity-based habits.

Identity-based habits

These are the habits that become part of our identity. We determine which habits to adopt and then change our identity to reflect those behaviours. In other words, what type of person do you need to become to make those habits part of your everyday life?

For example, if reading more is the outcome, you might aim to read 12 books in 12 months. This would form an outcome-based habit, and you’re likely to stop reading when you're done.

Instead, become the type of person who reads very regularly. Set a nightly phone reminder to read before bed. Start small, even 10 minutes, and gradually increase. You’ll soon get through those 12 books and continue reading each night. Stacking the new habit to an existing one (i.e. going to bed) is a great way to build momentum.

James Clear defines the recipe for sustained success as a simple 2 step process:

1. Decide the type of person you want to be.
2. Prove it to yourself with small wins.

“The goal is not to achieve results at first; the goal is to become the type of person who can achieve those things.” - James Clear.

The Cash Flow Builder program

Understanding your habits allows you to replace negative behaviours with positive ones, improving financial resilience and reducing stress.

The C.A.S.H.F.L.O.W. process enables businesses to recognise and address internal challenges, setting the stage for impactful improvements. By fine-tuning essential areas and implementing strategic changes, companies can strengthen their foundation, streamline operations, and achieve sustainable growth.

Our second step in the 8 step process is Acknowledge Your Money Habits

Recognising these patterns helps identify behaviours that may hold you back, like impulse spending or avoiding planning.

Contact us if you need help understand your money habits and how to use them to your advantage!

You can find more information about Atomic Habits at jamesclear.com