Stopping bad habits through habitual saving

Are there things in your life where you know deep down inside you shouldnt be buying but you buy them anyway? I think that one way to stop this habit is to create an account that you put money in whenever you do not buy that item as an incentive to stop buying that particular item.

When I was about 5 years old I remember my dad smoking all the time. He told me that he used to smoke 2 packs a day! Besides the fact of not being a positive example for me, it was costing him a lot of money. My dad also was taking the train into New Rochelle to pick me up, then going back to NYC, only to do the same thing again to drop me off. What my dad did to stop smoking was to simply put the money he would have spent on cigarettes and placed it into an envelope. After about 6 months of doing this he saved enough money to buy a cheap used car that he used to pick me up whenever he came to see me. By the time he bought the car he did not feel dependent on smoking.

I have been thinking of this story for a while now, and how it relates to not only me but other peoples finances. I feel that most people have habits that do not represent their values in life and could be used in a more constructive manner. In the book, "Your money or your life", (a book I highly recommend as the first book people read for personal finance) the authors talk about how you should spend money that is aligned with your values. If you have a habit such as smoking, drinking, or gambling, I think that a good way to see the negatives of these habits is to save money in an account and see how much you are really spending.

My dad literally put money in an envelope and constantly went to the bank to get the right amount of money. Luckily in this technological age you do not have to do that. You can simply open an ING subaccount and name it for whatever your habit is. Then, whenever you feel like doing your habit, just make an electronic withdrawal from your checking account to this subaccount. Not only do you not have to put money in an envelope, but you will earn interest.

I feel that having some type of goal for this money will keep you in your plan. For instance you have a drinking habit and you put $15 in the account every time you want to drink but dont. The plan is to spend this money on a trip somewhere you want to go. With this plan you will be much more likely to keep on your plan.

As always, comments are encouraged!