5 Simple Habits That Made Me Much Better With My Money
Money is a huge part of your life.
It gives you financial opportunities, and it also influences how you value the important things in the rest of your life: time, career, people, relationships, happiness… and ultimately, how you understand the world around you.
You know this. I know this. Everyone knows this.
So, let’s agree that the sooner we build smart money habits, the better.
In this post, I’m going to walk you through the 5 simple habits that made me much better with my money.
Let’s get started!
Money habit #1: Automate, automate, and automate!
If there’s only ONE simple money habit I’d follow, this would be it. It’s super duper easy to build, and it makes your life a whole lot easier!
Automate everything you can.
Simply link your accounts, so that money from your checking account (or a portion of your paycheck) goes straight to your investing account, saving account or emergency fund, and set up the exact day you want to make transfers.
This is exactly what I did so I don’t have to remember to do it myself every month.
As Bach says, automation is the one step that virtually guarantees that you won't fail reaching your financial goals.
Which leads us to the second habit.
Money habit #2: Write down specific money goals
You’ve heard the advice a million times.
Come up with specific goals.
The hard truth:
To reach that level of clarity, T. Harv Eker suggests writing down goals for your annual income.
I couldn’t agree more!
Like all goal-setting, be realistic, but don't be afraid to challenge yourself and go from the immediate tasks to the big picture. After all, people who are good with money aren't afraid to think big.
And if you don’t try to figure out what you want… what the heck do you think is gonna happen to it?
Money habit #3: Spend 30 minutes a day reading or listening to financial podcasts
I’ve become much better with money over the last year, and I credit a HUGE part of that to reading personal finance books and listening to podcasts covering all things money.
Here’s a list of my favorites:
- 3 Personal Finance Books That Won’t Bore You To Tears
- The Top 10 Women-Hosted Podcasts to Make You Smarter About Money
Fun fact: each evening when I’m cooking or taking a shower, I turn on a financial podcast; it’s incredibly simple to build a new habit when you make it part of an existing routine. I highly suggest it!
Money habit #4: Know where you money is going (track your expenses)
Tracking your expenses can be daunting.
Because knowing where your money goes means you have to be 100% honest with yourself about what you’re spending money on. YUP.
There are two ways I do this:
- On a daily basis by using the Revolut App.
- On a monthly basis by entering my expenses in a Google Spreadsheet.
This is a key financial habit to have because you get to know your numbers. And remember this saying? 👇
This habit needs to happen on a regular basis because it is easy to forget small purchases here and there that you make throughout the day.
Money habit #5: Buy for value
I’m adding this habit to the list because it’s a biggie that I learned the hard way when I decluttered my closet in Barcelona before moving to Ohio.
The story went like this:
I had an insane amount of clothes. So so SO insane that it got to the point where my closet would crash because it just literally couldn’t hold the hangers anymore.
So I filled two suitcases with my most loved pieces, and put all the rest in “to donate” bags. (Shoutout to my lovely GFs Helen & Loida for helping me out through this painful process!)
At first, I’d have a quasi-panic attack as all of the clothes I bought and thought I needed were out of my sight. Then, I realized it actually felt HELLA GOOD to start fresh, clean, and new.
Now - I always choose quality over quantity when I’m making a purchase - which also means buying less stuff.
And guess what?
To take this a step farther, I even consider all of the purchases to be investments.
Look at it this way:
This include clothes, but same goes for electronics, furniture, food… you name it.
Bringing it all together
Love it or hate it, creating a few smart money habits needs to be a priority in your life.
I honestly don’t know where I’d be if my money wasn’t organized. As Marie Forleo advocates, “no one will care as much about your money as you do.”
And there’s nothing to stop you building simple habits to get your financial life together.
The choice is yours. 😉