The Equal Pay Rabbit Hole: Making Informed Financial Decisions

By Kim Stephenson 

Discovering our values (heart) and changing our thinking (head) are necessary internal steps to make the most of our financial situation.

But to see real results, we need to act (hands) in the real world. 

Many people try to start here, bypassing the internal work and taking action based on the money alone (Surana, 2025). Consequently, their financial behaviour is founded on a combination of fears and beliefs from: 

These beliefs may be true, but aren’t always, and are rarely relevant to our specific situation.  

The Basis for Financial Decisions 

Beginning with money as the focus overlooks its actual role and usefulness in a person’s life. It also limits thoughtful consideration of individual circumstances and goals. This often results in attention being diverted to whatever financial topics are popular in the media – such as debt issues, celebrity wealth, or cryptocurrency – rather than to matters directly relevant to one’s own situation. This scattered approach often leads to two outcomes: 

Both outcomes come from “head”, or mindset, issues – failing to see that the outside world is complex and unpredictable, and not recognising that one’s inner perspective can be adjusted to handle it more effectively. 

When both values (heart) and thinking (head) are in the right place, it becomes much easier to change how we think and feel about money, and how we choose to manage it. 

How to Change Financial Behaviour 

The challenge is to change our behaviour in a way that takes human biology and neuroscience into account (Mendelsohn, 2019). Research on habit formation shows that around 40% of what people do is driven by habit rather than conscious choice (Wood, 2006; Wood & Rünger, 2016). 

Because of this, it makes sense to start by developing a clear purpose rooted in personal values. This purpose should be flexible, rational, and meaningful. Once that purpose is defined, habits can be built – guided by scientific evidence – to support it. These habits can help us to: 

With this foundation, tasks that require technical skills (such as comparing investment options) become more manageable. A clear purpose makes it easier to see what benefits matter most, what knowledge is worth learning, and which factors are relevant. This creates strong motivation to engage with the details rather than being overwhelmed by them. 

Instead of trying to learn everything (which is both impossible and demotivating), our focus can stay on the key issues connected to the goal – for example, risk, returns, timescales, and tax in investment decisions. This approach reduces cognitive load, avoids wasted effort, and keeps learning both efficient and purposeful. 

Why Small Habits? 

Massive, life-changing efforts don’t usually work long-term. Rather than attempting to alter your whole approach to money in one go, start by making a few small changes to your everyday habits. A good starter resource for general habit change is Duhigg (2012).  

Examples of small everyday financial habits to develop include: 

These small changes allow you to develop a better idea of where your finances are now and where you want them to be, both of which are necessary for financial planning. 

Changes That Last 

The success of change is often determined by a combination of motivation and the ease of achieving the objective. That’s why major change attempts often fail. When you’re initially highly motivated (with a New Year’s Resolution to get fit, or sort your finances, for example), the big change seems simple. But after a week, motivation falls, and after a month, it stops altogether.  

However, as explained by Fogg (2020), keeping change small helps it last. So start with simple habits that can be accomplished easily. For more practical tips on extinguishing undesired habits and substituting new ones, Atomic Habits by Clear (2018) is a good place to start. 

Another practical model is Wood’s (2019) “HITS” system: 

According to this model, there are usually prompts for behaviours we want to change (like spending on impulse). If we Hide those prompts (avoid your favourite online store), Impede the action (deregister your credit card from the site), avoid the action’s usual Trigger (mood or social media), and Switch it for a habit that gives you the same reward (improved mood or a feeling of value without the problem element of spending money), then we can make the change last. 

Another useful habit to develop is mindfulness. Not necessarily formal meditation (although that’s been shown to help in multiple ways), but becoming more aware of your emotions and thoughts on a moment-by-moment basis. When we’re aware of our internal state, it’s easier to realise that, for example, we’re spending on impulse. You can then mindfully choose to use your money to achieve your real values instead, perhaps as part of the HITS system.  

Informed Financial Decisions Require Values, Thinking, and Action