7 Good Financial Habits That Can Help You Save More Money
Do you ever feel like your money disappears faster than you expected?
It happens to all of us. A few extra purchases here, a takeout meal there, a subscription you forgot about, and suddenly you're wondering where your money went.
The good news is that you don't need to completely overhaul your finances to make a difference. A few good financial habits can help you become more aware of your spending, save more money and feel more in control of your budget.
The goal isn't to be perfect with your money. It's to make small changes that you can actually stick with.
Here are seven good financial habits worth trying:
1. Make saving automatic
One of the easiest ways to save money is to make saving part of your routine.
Instead of waiting to see what's left at the end of the month, set aside money for savings when you get paid. Even if you can only start with a small amount, it can add up over time. You can always increase the amount later as your budget allows.
Consider setting up an automatic transfer from your chequing account to your savings account on payday.
The important thing is to get into the habit of saving regularly.
2. Pay attention to what you're spending
It's so easy to spend money without really noticing it, especially when you're tapping your card or paying with your phone.
For the next 30 days, try keeping track of everything you spend.
Don't worry about judging your purchases or trying to change everything immediately. Just write them down.
You might be surprised by how much you're spending on things like takeout, convenience purchases, subscriptions or those little "I'll just grab this while I'm here" purchases.
A spending journal can give you a much clearer picture of where your money is actually going. If you'd like to try one, you can read How to Create a Spending Journal.
3. Keep your receipts for a month
Keeping your receipts can be a surprisingly useful money saving habit.
For one month, try keeping your receipts instead of immediately tossing them.
At the end of the week, look through them and see what you've purchased. Are there things you bought that you didn't really need? Are you spending more on groceries, coffee, takeout or entertainment than you realized?
You don't have to scrutinize every single purchase forever. Even doing this for a month can help you become more aware of your spending habits.
And once you're aware of where your money is going, it's much easier to decide where you want it to go instead.
4. Give your money a plan
You don't necessarily need a complicated budgeting system. You just need to know what your money needs to do.
At the beginning of each month, look at your expected income and expenses. Account for necessities such as housing, groceries, transportation and bills, but don't forget about savings, fun and the occasional unexpected expense.
If a monthly budget feels overwhelming, start with a weekly budget instead.
You could decide how much you have available for groceries, entertainment, takeout or other flexible expenses each week.
The best budget is one you can actually live with.
If you're new to budgeting, check out How to Start a Budget for some simple ideas.
5. Try an envelope system
If you have trouble sticking to spending limits, an envelope system can make your budget more tangible.
The traditional method involves putting cash into separate envelopes for categories such as groceries, entertainment, clothing, gas or takeout.
Once the money in an envelope is gone, that's your spending limit for that category until you replenish it.
But you don't have to use actual cash to make this work.
You can create separate categories in a budgeting app, use separate savings accounts or simply keep track of your spending digitally.
The idea is the same: give yourself a spending limit before you start spending.
6. Find someone to keep you accountable
Money can be easier to manage when you aren't doing it on your own. Find a friend, partner or family member who also wants to be more intentional with their money.
You could check in with each other once a week, compare your savings goals, share money saving ideas or simply encourage each other to stay on track.
This doesn't have to become a serious financial meeting. Even a quick "How did your spending go this week?" text can help. Having someone who understands what you're working toward can make it easier to stay motivated.
7. Find ways to have fun without spending money
One of the biggest challenges with trying to save money is feeling like you're giving up all the fun stuff. But you don't have to!
Look for inexpensive or free ways to enjoy your time instead of automatically spending money whenever you're bored.
Take a walk, visit the library, have a movie night at home, work on a hobby, explore a local park, invite friends over or finally tackle that book you've been meaning to read.
And don't underestimate the value of simply staying home and enjoying what you already have.
Saving money doesn't have to mean making your life miserable. In fact, learning how to have fun without constantly spending money can become one of the most valuable financial habits you develop.
For more ideas, check out: 36 Things to Do Instead of Spending Money or 16 Ways to Treat Yourself for Free.
Small habits can make a big difference
You don't need to completely change your financial life overnight.
Start with one or two of these good financial habits and give yourself some time to get used to them. Once they become part of your routine, add another.
Maybe you start tracking your spending. Then you set up an automatic savings transfer. Then you create a simple weekly budget.
Those small changes can add up.
Being better with your money isn't about never spending or never treating yourself. It's about becoming more intentional about where your money goes so you can spend on the things that matter most to you.
And that sounds like a pretty good financial habit to me.
