Money Rehab with Nicole Lapin - Science-Backed Financial New Year's Resolutions That Work

Episode Date: December 31, 2025

Every New Year, the same tired money resolutions rear their heads: “Make a budget,” “Save more,” “Track spending.” While those tips aren’t wrong, they’re also not going to change your financial life unless they’re backed by a strategy that actually works with your brain—not against it. In this episode, Nicole cuts through the noise and shares three New Year’s money resolutions that are rooted in behavioral science, psychology, and real research on human behavior. These aren’t just feel-good goals—they’re practical, proven shifts that will help you create lasting financial change without relying on willpower alone.

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One more time, public.com slash money rehab. This is a paid endorsement for public investing. Full disclosures and conditions can be found in the podcast description. I'm Nicole Lapin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab. Every single year, right around this time. we all get bombarded with the same boring obvious money resolutions like make a budget save 10% of your paycheck track your spending and look these things are absolutely fine and they are certainly

important but they are not revolutionary plus they're pretty vague they're joyless and they require you to white knuckle your way through day-to-day decisions your brain hates that so today i want to give you three new year's money resolutions that actually work now because they're clever or trendy but because they're backed by psychology, behavioral science, and real research on how humans change. And they will absolutely move the needle on your financial life. So let's get into it. Here's resolution number one. Make your friction your financial superpower. Most people believe that willpower drives financial progress. It does not. What actually drives progress is friction, strategically adding or removing little steps that change your behavior without relying on motivation.

I want you to think about friction like a financial remote control. You can turn your good habits up or bad habits down simply by adjusting how easy or how hard they are. This idea is backed by behavioral economics research and the work of Nobel Prize winner Richard Thaler, who found that people will naturally default to whatever's easiest, even if it's bad for them financially. So your resolution this year is this. Make the bad behaviors harder and the good behaviors so easy. Here are tactical ways to do that. I'll start with some ways to add friction to your spending.

Delete your saved credit cards from Amazon, Uber Eats, Target, everywhere. It adds about 30 seconds to checkout, and those 30 seconds are the difference between impulse spending and intentional spending. Turn off tap to pay on your phone. Tap to pay is frictionless. Way too frictionless. Make yourself pull out your card. Put a $100 plus cooling off timer on purchases. If something costs more than $100, you wait 24 hours.

If it still feels necessary the next day, buy it. If not, you just saved money. Now for the other side of the equation, let's remove friction from investing. Download the apps that you're going to need for investing on your home screen, not bury it on page six. And set up an automatic monthly investment so you set your investments up once for the year, not for every month. This is how you build wealth, not by removing all of the fun from your life, but by designing your environment so that the right decisions happen with less effort than the wrong ones. Resolution number two. Use identity-based investing. Psychologists will tell you that people don't change because they set goals. People change because they adopt an identity and then behave consistently with that. This concept comes from behavioral researchers and is rooted in the principle of self-consistency. Once you believe something about yourself, you subconsciously act in alignment with that belief. So this year, your money resolution isn't to save more or invest more. It's to be the kind of person who saves and invests consistently. I know that sounds kind of fuzz So let me translate that into real behaviors.

You can say, I'm the person who doesn't miss contributions. And that will drive you to make sure that you're always making retirement contributions, even on months where you can only invest five bucks. The amount doesn't really matter here. The identity does. You can say, I'm a person who cares about how much money I have. And that means you'll check your accounts monthly. You read your pay stubs.

You'll check your credit card statements. You won't miss any money falling through the cracks because that is not who you are. Here's why this works. Identity-based behavior is automatic. If you tell yourself that you're someone who runs, you don't negotiate with yourself about a jog, you just go. If you say that you're someone who invests every Friday, you don't negotiate with yourself about contributing to your Roth, you just do it.

Resolution number three, set anti-goals. The financial things that you will not do this year. People love setting goals. I want to save more. I want to invest more. I want to spend less. But research from Stanford and Harvard actually shows that setting anti-goals can be much more powerful because they remove decision fatigue and protect you from making the mistakes that sabotage progress. Anti-goals are the things that you refuse to do.

These are non-negotiables. Think of these like financial boundaries, but with teeth. Here are some anti-goals that work insanely well. I will not let my checking account drop below $500. This prevents overdraft fees, keeps you from living paycheck to paycheck, and forces you to slow down spending. before things get messy or I will not carry a balance on high interest credit cards this one rule can save you thousands of dollars in interest and regret I will not buy anything on sale that I would not buy at full price well this eliminates emotional sale shopping and the fake

frugality trap I will not invest in anything I can't explain to a friend if you can't explain what the investment is how the investment works how it makes money and what the risks are you honestly shouldn't touch it. Anti-goals make money management easier because you're not deciding in the moment. You already decided. Anti-goals create clarity, simplicity, and peace. Three things we all need more of in our financial lives. Why are these things the three strategies that will help you win in 2026?

Well, because they remove reliance on willpower. Willpower is a terrible tool for long-term change. Friction, identity, and anti-goals rely on structure, not self-control. control. They also reduce decision fatigue. The average adult makes 35,000 decisions per day. Your brain cannot debate every single purchase. Instead, you decide once with good information and live by it. And most importantly, they work with human psychology, not against it. That's it. These resolutions don't ask you to do the impossible. They don't ask you to be perfect. They just ask you to design a life where good money decisions become the default. For today's tip, you can take straight to the bank. Replace one financial. should with a habit hook. A habit hook ties a new behavior to an existing one, something you already automatically do. So after I make coffee, I will check my transaction history. After I get paid, I will move 20 bucks into my investment account. For the holidays, my family and I are headed to Florida to visit my in-laws. It is super important to me that my daughter knows her

extended family and has the opportunity to spend time with them. While we're leaving one warm zip code for another, I know we'll still be getting that cozy holiday feeling of being with loved ones. The not so cozy part is the cost of flying three people across the country. I know a lot of us are feeling that this time of year. The costs add up fast. That's why I love hosting my home on Airbnb. It's an easy way to bring in some extra income while we're away and that extra cash can help fund our next trip. Let's say you have a big trip planned or are escaping to a warmer part of the world to work from the beach. Why leave your home sitting empty and dark when it could be making money for you? This year, it's easier than ever to host her home thanks to Airbnb's co-host

network. With the co-host network, you can hire a local co-host to take care of your home and your guests while you're away. A co-host can do it all. Create your listing, handle check-ins, provide on-site support, and give you peace of mind that your home and guests are being taken care of while you're away. So if you've been thinking about hosting but you don't know where to start, find a co-host at Airbnb.com slash host. After I fill up my gas tank, I will put $5 in savings. Habit hooks work because your brain loves, loves, loves routines. Attach a financial habit to a non-negotiable part of your day and the money behavior becomes non-negotiable too.