Posted by Maneesh Sethi :: January 4, 2008 @ 7:14 am

Have you ever tried to break a habit? Think back to when you last tried to break a bad habit (eating when you weren't hungry, for instance). What was the hardest part about breaking it?

When your social scene revolves around the item you were trying to get away from, it is incredibly hard to break the habit.

For example, I have a friend who hung out with his buddies who smoked cigarettes when he was trying to quit. What happened? Of course, every time he tried to quit, he would break down and smoke a cigarette when hanging out with his friends.

Breaking a habit is not an easy thing, but it's especially hard if you put yourself around other people who have the same vice. The same goes with personal finance. Are you trying to cut down on spending? Don't be around your friends that go out and spend a lot of money on drinks, because you will probably do the same. Don't go shopping with your friends if they usually spend a lot of money. You have to isolate yourself from the situation.

When trying to cut down on junk food, you have to throw all of it out of the house. Any temptation will lead to failure. Similarly, any temptation to spend too much can make you fail. I'm not saying you need to cut these friends out of your life---just don't participate in the expensive activities that could make you fail. Once you reach the point where you can go shopping with friends and come home empty-handed, you’ll know you’ve made a lot of progress.

Be careful of overspending, spend time with supportive friends, and take advantage of good opportunities to reduce your debt such as a P2P loan on Lending Club. We at Lending Club want you to succeed in breaking debt and spending habits.