Read Time: 4-minutes
Happy Saturday,
Here is this week’s edition of 6-Point Saturday — financial insights to help you make smarter money decisions.
Table of Contents*
*Clickable in the online version.
Point #1 — Short Story: The Power of ‘Identity’
At the 2018 NCAA Wrestling Finals, a wrestler from Penn State faced an opponent who he had traded wins with in previous matches. What was different about this match, though, was that if he could secure a win, it would clinch a team championship for Penn State.
Toward the end of the first period, his opponent scored, took him to his back, and nearly pinned him.
But seconds later, he reversed position and won by a pin himself.
Afterward, ESPN’s Quint Kessenich asked the wrestler, “You went from being on your back to the pin… what happened?”
The wrestler said:
“I’ve been doing that move since I was 6. No need to freak out or anything…This is what I live for. I train every day to come out here and be an NCAA champion. To win titles at Penn State—that’s what we do.”
It was a surprising move that landed him the ultimate prize.
Notice, he didn’t exactly focus on the wrestling move, though. He gave credit to his mindset. His identity.
While his exact words in the post-match interview were that winning titles was what they did, his undertone expressed, “This is who we are.”
An identity built through repetition. Years of daily habits had shaped what he believed about himself. And drove his performance.
An identity that’s part of the wrestling program's culture built by head coach Cael Sanderson. Who, after becoming a 4X NCAA champion and undefeated wrestler during his own college career, has coached his program to 12 titles in 15 seasons.
Why is your identity so important?
James Clear explained in his New York Times bestselling book Atomic Habits [Emphasis mine]:
“The more pride you have in a particular aspect of your identity, the more motivated you will be to maintain the habits associated with it.
…
If you’re proud of the size of your biceps, you’ll make sure you never skip an upper-body workout. If you’re proud of the scarves you knit, you’ll be more likely to spend hours knitting each week. Once your pride gets involved, you’ll fight tooth and nail to maintain your habits.
True behavior change is identity change. You might start a habit because of motivation, but the only reason you’ll stick with one is that it becomes part of your identity.”
Your identity probably impacts your financial outcomes more than you realize.
Consider if you’ve ever told yourself things like:
“I’m not much of a saver.”
“I’m bad with credit cards.”
“I’ve always been too frugal.”
“I’m more of a spender.”
“I never seem to have money left to invest.”
These are beliefs that directly relate to your identity.
So, let’s look at how you can change your Money Identity so you can change your life.
Point #2 — The 2 Steps to Upgrade Your Money Identity
James Clear broke down the 2 steps to change your identity:
“1. Decide the type of person you want to be.
2. Prove it to yourself with small wins.”
One life-changing example he shared:
“I have a friend who lost over 100 pounds by asking herself, ‘What would a healthy person do?’ All day long, she would use this question as a guide. Would a healthy person walk or take a cab? Would a healthy person order a burrito or a salad? She figured if she acted like a health person long enough, eventually she would become that person. She was right.”
Are you going to execute perfectly right out of the gate?
Of course, not. The good news is that you don’t have to. Clear explains:
“Every action you take is a vote for the type of person you wish to become. No single instance will transform your beliefs, but as the votes build up, so does the evidence of your new identity. This is one reason why meaningful change does not require radical change. Small habits can make a meaningful difference by providing evidence of a new identity.
…
When the votes mount up and the evidence begins to change, the story you tell yourself begins to change as well.
…you don’t need to be perfect. In any election, there are going to be votes for both sides. You don’t need a unanimous vote to win an election; you just need a majority.”
So, what aspect of your Money Identity would you like to change?
Spender to saver?
Bad with credit cards to responsible?
Never enough to invest to a consistent investor?
Once you know the person you want to become, fill in the blank to this question with your targeted identity to figure out your next step:
What would a ______ person do?
Imagine the easiest, smallest step that would be a vote for your improved identity.
For example, if you want to be a consistent investor, you could set up a small, automatic contribution, even if it’s only $10/month. It will prove to you each month that you have what it takes—or at least that you’re not the kind of person who can’t invest.
You can do the same with credit card debt.
As I told Investopedia this week, not only will you build up your Money Identity, but you can become debt-free sooner and save on interest in the process:
“Even small, steady payments can make a big difference,” said Benjamin Daniel, a certified financial planner (CFP). “Let’s say you have $3,000 in credit card debt at a 20% interest rate, and you’re making the minimum payment of $80. If you can increase your payment by just $20 a month, you’ll save over $500 in total interest and become debt-free 14 months faster.”
Point #3 — “I suck at money.”
"I suck at money. I really need to figure out where all my money goes and how to get it under control.
I'm a software developer at a FAANG company. As soon as I get stock grants I sell them so that I can live.
I have a family of 4 and my wife was a stay at home [mom] but now works a little and brings in 1k a month.
I barely make it.
Like, I need a plan to get my budget under control but don't know where to start. We really don't spend much extra, but I think there's just a bunch of small [stuff] that trickles out of my account daily.
Any like ‘short read’ books I can look at or any type of references that can help me out?”
The individual's Money Identity is right there in the opening: "I suck at money."
And it's probably driving the out-of-control spending.
Let's apply the 2-Step Process to shift their identity:
1. Decide the person you want to be:
Maybe they want to be someone who is responsible with money. That would work.
2. Prove it to yourself with small wins:
They asked for a “short read” book recommendation. They nailed the "small" part, but I think they can do better.
The root issue seems to be spending. As a FAANG software developer, their income is probably solid. And they later mentioned using multiple "Buy Now, Pay Later" services.
So, they need better visibility into their spending. A quick win that books a small vote towards being responsible with money:
They could skim through credit card spending for just a few minutes. While looking for spending that satisfies 2 criteria:
An area where they're spending more than expected
And it’s also an area that doesn't matter much to them anymore
Getting visibility into this type of spending creates awareness and sparks the motivation to change.
Small steps. Easy votes for their new identity of being responsible with money.
Point #4 — Stock Grants: Hold or Sell?
The individual above immediately sold their stock grants (a type of compensation where employers give shares of their own stock) to cover expenses. But what if you don't need the cash right now?
Should you hold the shares?
Here's a simple test:
Pretend your company handed you the equivalent amount in cash instead of stock.
Would you take that cash and buy shares in your company?
If the answer is no, you should probably sell the shares.
The bottom line: This reframe cuts through any emotional attachment and mental accounting tricks our minds play. It forces you to evaluate the decision based on what actually matters: your goals, risk tolerance, and whether you need the money liquid.
Point #5 — Quotes of the Week
Continuing the “Identity” theme, which of these is your favorite?
Your chosen identity is either your engine or your anchor.
So many people will choose to identify with their struggle, rather than their potential...and it will determine their motion (or lack of it).
Be careful of the stories you tell yourself about who you are.
— #Dr. Julie Gurner (#@drgurner)
3:30 PM • Dec 22, 2024
“We first make our habits, and then our habits make us.”
Excellence isn't a destination, it's a state of being & daily commitment. You are no longer "excellent" as soon as you revert back to sub-par habits and thought patterns. And you become "excellent" as soon as you adopt them again—and remain "excellent" as long as they're intact.
— #Nicolas Cole 🚢👻 (#@Nicolascole77)
11:00 AM • Oct 17, 2025
“We are what we repeatedly do. Excellence, then, is not an act, but a habit.”
— Will Durant
— #Glendinning Place (#@GlendinningPl)
10:35 PM • Oct 14, 2025
Point #6 — My Question of the Week
What’s a past action step (e.g., investing in a CD, reading a financial newsletter, cancelling an unused subscription) that shows you're the type of person who can be good with money?
What's 1 small step you can take today that’s a positive vote for your Money Identity?
Reply to let me know! I read every response.
Thanks for reading — I hope you found a helpful idea or two.
I’ll see you next Saturday with more.
Have a great weekend,
Benjamin Daniel, CFP®
Founder, Money Wisdom
P.S. Want to take control of your money, stop stressing about your expenses, & feel confident about your financial future? There are 2 ways I can help you:
Financial Health Check: Get your biggest money questions answered, understand where you stand financially, and get a personalized action plan from a CFP® professional. Book a free Intro Call here to see if you’re a good fit.
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Disclaimer:
This material is not investment or tax advice. No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading this material can be accepted by the publisher.
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