Three 30-Day Challenges That Will Actually Change Your Finances

Summary

In this episode of 'The Totally Chill Guide to Work and Life', Holly Trantham, the creative director, discusses strategies for resetting finances and forming new habits. She emphasizes the importance of starting investments early and introduces Betterment, an automated investing platform. Holly also challenges the '21-day habit formation' myth, citing a study that shows it can take up to 254 days. She suggests three 30-day money challenges: a spending category reset, a month-long money audit, and a short-term side hustle to boost savings, aiming to provide insights and incremental financial improvements.

Takeaways

• 😀 Holly Trantham, the creative director at tfds, introduces the second season of 'The Totally Chill Guide to Work and Life'.
• 🌟 Holly has eight years of experience working behind the scenes on content across YouTube and other tf's channels, and she has also written a book titled 'Beyond Getting By'.
• 💰 The series aims to discuss approaches to money and career decisions from a relaxed perspective, emphasizing a balanced life rather than sole focus on these aspects.
• 🍂 As fall approaches, many people consider resetting their financial habits, and the script highlights the importance of starting to invest early to allow money time to grow.
• 🤖 Betterment is introduced as a tool for automated investing with features designed to maximize returns, making the investment process less daunting for beginners.
• 🧘 The concept of the '30-day challenge' is discussed, questioning the widely accepted idea that it takes 21 days to form a habit, with research suggesting variability in habit formation time.
• 📊 Holly shares her interest in self-improvement and personal productivity, mentioning her detailed budget spreadsheet and meticulous account tracking.
• 🚫 The potential pitfalls of short-term challenges are compared to crash diets and cleanses, which can be unsustainable in the long run.
• 💡 Three specific 30-day money challenges are suggested: a spending category reset, a month-long money audit, and a short-term side hustle challenge.
• 🛒 The spending category reset involves focusing on one area of spending, like food, to identify overspending and adjust habits accordingly.
• 📋 The month-long money audit is a comprehensive review of financial habits, including tracking spending, assessing debt and savings, calculating retirement trajectory, and setting financial goals.
• 💼 The short-term side hustle challenge is proposed as a way to quickly boost savings and potentially discover a new income stream, with examples of gig-based services or seasonal work.

Q & A

Who is Holly Trantham and what is her role in the video?

Holly Trantham is the creative director at tfds and the speaker in the video. She has been working behind the scenes on content across YouTube and other tf's channels for eight years and has also written a book titled 'beyond getting by'. In the video, she discusses approaches to money and career decisions from a relaxed perspective.

What is the main theme of the second season of 'The Totally Chill Guide to Work and Life'?

The main theme of the second season is to help viewers approach their money and career decisions from a relaxed standpoint, aiming to live the life they want without making these aspects their sole focus.

Why is starting to invest early considered important according to the video?

Starting to invest early is important because it allows your money to grow over time, leveraging the power of compound interest.

What service does Betterment provide and how does it help with investing?

Betterment provides automated investing services and tax-smart tools designed to maximize returns. It helps ease individuals into investing by managing the complexities behind the scenes, allowing users to focus on what brings them joy.

What is the traditional belief about forming a new habit and how does the video challenge this belief?

The traditional belief is that it takes 21 days to form a new habit. However, the video challenges this by citing a study that shows the time it takes for a new behavior to become automatic can range from 18 to 254 days, indicating that habit formation is not as straightforward as commonly believed.

What is Holly's personal approach to managing her finances and why does she track her accounts meticulously?

Holly uses a detailed budget spreadsheet to track her accounts meticulously because it makes her feel more in control of her finances. She is interested in self-improvement and personal productivity, and this method helps her maintain a better relationship with money.

What are the potential issues with short-term challenges like 30-day challenges, as discussed in the video?

Short-term challenges can be problematic because they may be similar to crash diets and cleanses, being potentially harmful and impossible to maintain in the long run. They may not lead to sustainable habit formation.

What is the first approach Holly suggests for a 30-day money challenge and why is it beneficial?

The first approach is a spending category reset, focusing on one spending category like food. This is beneficial because it helps identify overspending areas and adjust habits without the extreme commitment of a full no-buy challenge.

What is the concept of a month-long money audit and how does it differ from a no-buy challenge?

A month-long money audit involves reviewing and understanding one's full financial picture without necessarily changing habits during the challenge. It differs from a no-buy challenge by focusing on gaining insights and information to make incremental changes rather than immediate spending cuts.

What is the purpose of a short-term side hustle challenge and how can it help with financial goals?

A short-term side hustle challenge aims to provide a quick boost in savings and build momentum for potential long-term income streams. It can help reach financial goals by offering extra income that can be directed towards savings or investment.

What is the overall message Holly conveys about 30-day challenges in relation to financial habits?

Holly's overall message is that while 30-day challenges may not make one rich, they can be helpful for changing mindsets and habits by setting clear intentions and focusing on specific, achievable goals.