5 Powerful Habits to Change Your Finances

Do you believe that a monthly budget review or a weekly financial check-in is sufficient? However, to truly gain control over your finances and see consistent improvement, integrating daily habits is essential. These habits are the foundation for avoiding financial pitfalls and staying aligned with your goals. I’m a huge fan of habits, but I never imagined how much they could impact my finances and change my life. Since I started keeping a regular budget, I’ve been totally relaxed about spending money.

Habits are powerful tools that can simplify our daily routines and bring order to our financial chaos.

Let’s face it: In a world where financial stability is often seen as a distant dream, managing our finances effectively can feel like a never-ending chore. We all wish it could be as simple as checking off an item on our to-do list, but the reality is that financial management requires ongoing attention and care. However, this doesn’t have to be overwhelming or stressful. By adopting a few simple financial habits, we can change our finances without feeling burdened. I like habits because they make my life easier and give me stability.

Habits are not only great for simplifying your everyday life; they are also helpful to change your finances and get them in order.

Why can habits change your finances?

Maybe you’ve heard or said “out of sight, out of mind”?

This is exactly what happens when you don’t have your finances on the table. You can easily forget what’s going on in your financial life and lose track of your money. You forget what you spent and quickly lose sight of the savings goals you set at the beginning of the year.

Perhaps you think that creating and reviewing your budget once a month, scheduling a weekly check-in, or occasionally having money conversations with your partner is enough to stay on track.

But to truly stay on track with your finances and improve every part of them, the only way to do it is to establish simple daily habits. They are the key to success in avoiding potential money leaks and staying focused on the goals in front of you!

5 simple daily habits to change your finances

With a few simple habits, you can take control of your finances and start making strides toward your goals. Maybe you already have one of these habits. That’s okay. Sometimes, it’s really helpful to remember them. We can easily forget them, even though we already know them.

👉 My tip: If it’s too much for you at first, just pick one, start doing it, and commit to it until it’s a real habit that you do automatically.

By incorporating these five habits into your routine, you can take charge of your financial future and steadily progress toward your goals. Whether you’re starting fresh or reinforcing existing habits, these tips can make a significant impact on your financial health and change your finances.

1. Spend your money smartly.

We spend money almost every day. It’s a habit we never ask ourselves about, whether it’s a quick grocery run, getting gas, or purchasing an item we found online. But we never ask if we can save the money we spend?

It could be questions like:

• Do I really need this, or can I get by without this item?
• Can I get or borrow it for free?
• Is there a way I can get less?

I know these seem like a lot of questions when you want to buy something really simple like a bag of apples or a pair of socks. But the answers are as simple as a 5-minute online search for a coupon or downloading a money app. Or wait a few weeks until an item is available at a discount instead of paying full price.

The point is to think about any purchases you might make that day before you go to the store and spend your hard-earned money. Just a few minutes of conscious thought can make a difference in your wallet or your bank account!

• Why It Matters: Smart spending ensures that your money goes toward things that truly matter and align with your financial goals. It prevents unnecessary expenses and helps you save more.
• How to Do It: Before making a purchase, ask yourself if it’s a need or a want. Compare prices, look for discounts, and consider the long-term value of what you’re buying. Use cash-back apps or loyalty programs to get the most out of your spending.
• Tip: Create a prioritized shopping list and stick to it. This helps you avoid impulse purchases and keeps you focused on your financial objectives.

By challenging our spending habits, we find ways to transform our finances.

2. Collect the receipts and track your spending.

You may know that I like to track our spending. It’s my way of managing my money, and it’s a habit that I’m sure can transform any woman’s finances. That’s also the reason I always ask for the receipt.

I have a small receipt jar at home that I keep each receipt in when I get home.

There are two good reasons for this:

1. I don’t lose a receipt and save time rummaging around in pockets or purses to make sure I don’t miss anything.
2. I may not get around to entering all my receipts every day, even though I try. But even if I only manage it once a week, it’s a visual reminder of what we spend each day on. And this is exactly what is crucial. When my little jar is full in just a few days, I know I have to be careful that our spending doesn’t get out of hand.

Besides, I have a separate folder in my inbox for all emails with invoices. As soon as I receive an email with an invoice, I move it to this folder and can also track it easily.

• Why It Matters: Understanding where your money goes each month is crucial for making informed financial decisions. Understanding where your money goes each month is crucial for making informed financial decisions. By keeping receipts and regularly reviewing them, you gain insights into your spending patterns and identify areas for improvement.
• How to Do It: Keep a designated place for receipts at home and review them weekly to stay aware of your financial activity. Use budgeting apps like Mint or YNAB (You Need A Budget) to categorize and track your expenses. Review your spending weekly to identify areas where you can cut back and redirect those funds toward savings or investments.
• Tip: Create a simple budget that aligns with your financial goals. Allocate a specific percentage of your income to categories such as needs, wants, savings, and debt repayment.

3. Check your bank account.

Sometimes we don’t always have a receipt for our purchases. You may know this if you’ve signed up for automatic payments.

These purchases can quickly disappear in our inbox if we don’t keep track. That’s why I check my bank account every day, so I don’t miss anything and always know what’s coming in and out.

Checking your bank account is also a good idea if you use your debit or credit card while shopping.

• Why It Matters: Regularly monitoring your bank account helps you stay on top of your finances, catch any unauthorized transactions, and ensure you’re meeting your budgeting goals.
• How to Do It: Set aside time each day or week to review your bank statements. Look for any unusual charges and confirm that all transactions are correct. Use banking apps that provide real-time updates and alerts for better tracking.
• Tip: Make it a habit to reconcile your account balance with your budget. This ensures you’re always aware of your financial standing and can make adjustments as needed.

4. Find ways to be frugal around the house.

When we talk about habits to transform our finances, we shouldn’t just talk about our spending. We also need to talk about saving. Because there are so many creative ways we can save right at home!

• Why It Matters: Being frugal with household expenses can free up more money for savings, investments, or other financial goals. Small savings on everyday expenses can add up significantly over time.
• How to Do It: Implement cost-saving measures like using energy-efficient appliances, reducing water usage, and buying in bulk. DIY home repairs and maintenance can also save money.

Here are just a few more things you can do to save a few bucks every day

Eat at home – Start meal planning and preparing meals to take to work. This way you avoid spending money in overpriced restaurants, in the canteen or at the nearest snack bar. You should also be diligent about eating leftovers to avoid waste.

1. Experiment with Homemade Cleaning Products – It’s incredibly easy to make your own cleaning products, and they cost pennies compared to store-bought bottles. You probably have most of the ingredients in your kitchen.
2. Take Time to Organize – Organization really saves you time and money, and it’s incredible how many treasures you’ll find when you take the time to properly label and put things away.
3. Reuse and repurpose – My grandparents were very diligent in finding alternative uses for supplies that could very well have gone straight into the trash. Before you throw away an item, see if you can use it in another way. Make sure it doesn’t become a mess!
4. Less is more – Most of the time we think that to get better results we need to use more detergent, shampoo, shower gel etc. But the opposite is true. Modern cleaning products and cosmetics are manufactured in such a way that we only need a small amount to get a good result. If you pay attention to this, you can also save a lot of money. And as another great side effect, you protect the environment.

• Tip: Plan your meals and grocery shop with a list to avoid buying unnecessary items. Consider generic brands, which are often just as good as name brands but much cheaper.

👉 Read more: Eat financially smart: Eating healthy on a budget

5. Talk to your partner.

I find that the best way to get your spouse on board with financial goals is to keep them in the loop. If your husband has no idea what he can and can’t spend, he’ll probably spend more often.

A quick conversation in the morning or evening about all the shopping we need to do that day makes all the difference. I like to talk about our budgets and show him our bank accounts so he knows exactly where we stand and how much money we have earmarked for each expense.

If your partner is the one who actually handles the finances, I encourage you to always ask questions and communicate just to keep yourself informed. Working together not only creates a stronger partnership, but also avoids potential financial conflicts.

• Why It Matters: Open and honest communication about finances with your partner can prevent misunderstandings, align your financial goals, and strengthen your financial planning.
• How to Do It: Schedule regular financial check-ins with your partner to discuss your financial status, goals, and any concerns. Use these meetings to review your budget, track your progress, and make adjustments as needed.
• Tip: Approach these conversations with a positive and collaborative mindset. Avoid blame and focus on finding solutions together. Consider using financial tools or apps that allow both partners to see and manage their finances transparently.

What habit would you choose first to change your finances?

If you’re tired of feeling like your finances are out of control, you’ll probably want to choose one of these habits to make a change.

Try one or two of these habits until they become more of a part of your daily routine. Then you add a few more until you’re doing all five without really thinking about it.

And you’ll find that managing your finances isn’t all that difficult.

By incorporating these habits into your daily routine, you can create a solid foundation for financial success. Stay committed, and remember that every step you take brings you closer to your goals.