Erika Jones, CFO, CCTAProfit First Professionals · Certified Fractional CFO and 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 segment, Mike Michalowicz challenges the common belief that financial discipline requires strict deprivation. He explains that forbidding oneself from spending triggers psychological reactance, causing people to resist and rebel against restrictions. To avoid this trap, he proposes a practical guardrail: create a separate bank account named after a specific enjoyable activity (e.g., dinner, movies). Allocate a set percentage of each paycheck to this "fun" account. When the account balance is sufficient, the activity can be enjoyed; if not, the person waits until enough funds accumulate. This approach balances enjoyment with financial control by turning discretionary spending into a planned, self‑regulated system.

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Deprivation is not a discipline, it's a trap. When it comes to your finances, we're told 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.