Diane GardnerFounder, Adept Business Solutions · Profit First Professional

MONEY MYTHS FROM MIKE MICHALOWICZ #themoneyhabit #money #getrich #moremoney #moneymanagement #cash

15 Jan 2026 · 1 min

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In this short video clip, the speaker challenges the common budgeting myth that deprivation is a disciplined way to manage money, explaining that it triggers psychological reactance—people’s instinct to resist imposed restrictions. Instead, the speaker proposes a more sustainable approach: create a dedicated “fun” bank account (e.g., Dinner or Movie account), allocate a set percentage of income to it, and only spend on discretionary activities when the account balance is sufficient. This method provides guardrails that allow enjoyment without overspending, turning budgeting into a positive, self‑controlled habit rather than a punitive restriction.

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Deprivation is not a discipline. It's a trap when it comes to your finances. We're told, you know, you can't do that. But when you're told you can't do it, your mind says, I won't adhere to that. It's called psychological reactance. We resist and retaliate against restriction. So there's a better way. Allow yourself to have fun, but you've got to set up guardrails around it. This is the exact technique to use. At your bank, add one additional account. Give it the name of the activity that gives you fun. Going out to dinner, enjoying a movie, whatever it may be. So call it a dinner account or a movie account. Then allocate a percentage of your income into that account. When it has enough funds to do activity, you can go do it. When you look in it and there's not enough money there, it's not time to do it yet.