Kevin SimpsonCPA Web Books · Founder at CPA Web Books

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

15 Jan 2026 · 1 min

Watch on YouTube

0:49

In this personal‑finance segment, the speaker argues that depriving yourself of enjoyable spending is counterproductive because it triggers psychological reactance – a natural resistance to imposed restrictions. To avoid this trap, he recommends a concrete guardrail: create a separate bank account named after the fun activity (e.g., "Dinner" or "Movie"), allocate a set percentage of each paycheck to that account, and only indulge when the account balance is sufficient. This method balances the desire for enjoyment with disciplined budgeting, turning discretionary spending into a controlled, intentional habit.

Chapters

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.