Small Habits That Will Improve Your Financial Situation Substantially


If you’re honest with yourself, are there things you would change about your financial situation? Most people would, but don’t actually do anything to make it happen. This is usually because they think the things they have to do are too complicated or taxing, but the truth is, even small habits can improve your financial situation and change your life.

Take a look at the small habits below and see how you can incorporate them into your daily routine: 

Put Money Into An Emergency Fund Each Month

The first thing you should ideally be doing is putting your money into an emergency fund each month. Having an emergency fund will stop you from going into debt if you suffer an injury, work loss, or something else that could potentially mean spending money you don’t have. By dedicating a set amount of money to your emergency fund, you won’t need to worry if an expensive emergency hits. Try the following:

  • Open an account that you can easily access should you need money in an emergency, but vow only to use it in a real emergency
  • Set up a direct debit, so you don’t even need to think about putting money in there – just include it in your monthly bills and forget it.

Never Impulse Spend

Understand the triggers that make you want to spend so that you can avoid impulse spending. Some people impulse spend because they’re bored, others because they’re sad, others for a different reason altogether. Really try to stay mindful, and avoid shopping online as it’s far too easy to disassociate yourself from your bank balance and spend. Take money out the bank and keep it on you instead, so you have to hand over the cash. An alternative is to purchase a prepaid debit card, and only load your on-hand cash to it. Once the money is out, you will not be able to make any purchases!

Have A Budget 

Put together a budget so you know exactly what you can spend on your food, entertainment, bills, and other things. When you know exactly what you can spend, you’ll be less likely to buy things mindlessly. When you pair this with the technique of taking money out of the bank and handing over the physical cash, you should feel like you have a much better handle on your finances. You can even put the set amount of cash into envelopes to make it easier for you – many people love using the envelope method when trying to be more in control of their money. 

Use A Cashback Site

Cashback sites when spending can mean getting a decent amount of money back on your purchases if you commit to using them each time you have to buy something online. Don’t use it as an excuse to buy, just bear it in mind when you need to buy something. You will have to wait a while, but providing everything goes smoothly, you could get up to 10% back on purchases. 

Always Go Shopping With A List

When you go food shopping, or any kind of shopping really, make sure you take a list with you entailing what you need. If you don’t stray from the list and avoid temptations you don’t need, you will save a lot of money over time. Make sure you pay attention to how the supermarkets try to trick you into buying more. For example, the way they display things and create offers is brilliant. You might think you’re getting a great offer when in reality, it’s not that great. 

Small Habits That Will Improve Your Financial Situation Substantially

Set Goals That Motivate You

Having financial goals is key to improving your financial situation and ensuring you actually do what you set out to do. If your goals are vague and ill-defined, it’s highly unlikely you won’t achieve them. Having both short and long term goals can be motivational, but it all depends on what you want to achieve. They really have to appeal to you! It can be a good idea to sit down and think carefully about what you wish your lifestyle was like now, and what you’d like it to be like in the future. You can then work out how much money you need to bring in to achieve your goals. 

Focus On Paying Off Your Debt

If you have debt, one of the smartest things you can start off doing is paying it off. Sometimes, being in debt can seem hopeless, but there’s always a way out. It might take a while, but the sooner you figure out what you need to do, the better. Professional help can even be beneficial, depending on how severe it is. Places like McCarthy Law Debt Law Firm could give you advice and an action plan that will help to get you out of the red. There’s no shame in getting help if you need it. 

Work On Changing Your Beliefs Around Money 

It can be challenging to change your beliefs around money. You might not have any idea what yours are right now, but with a little work and introspection, you should be able to figure it out. Many people have beliefs such as:

  • I’ll never have enough money
  • I’m not the kind of person that makes money 
  • Money is the root of all evil 

Having negative beliefs about money can seriously affect how much of it you earn and how much of it you keep. Watch YouTube videos and get a better idea of what you can do to eradicate them. Some options include:

  • Journaling
  • Affirmations
  • CBT

Keep A Money Log

Keeping a money log of everything you buy can give you a better idea of where all your money goes and what you might like to improve on. Lots of people wonder where all their money has gone at the end of the month when in reality it’s gone on unnecessary purchases and even small spends that add up. All of the little things add up, so include them in your spending diary too. Some apps do this, or you can keep a physical notebook. You could even use the notes app on your phone. 

Small Habits That Will Improve Your Financial Situation Substantially

Think About A Purchase For At Least A Few Weeks Before Buying

If there is something you want, that’s not a necessity, think about it for a few weeks first. It can be difficult to do this, but a lot of the time, you’ll find that the urge to buy subsides. It may go away completely, in which case, you won’t want to buy the item anymore and will save money automatically. 

Hold Weekly Money Meetings

If you’re trying to help your whole family be better with money and learn as much as possible, hold weekly money meetings. This will ensure you’re all on the same page, and will even teach your kids great lessons that they can carry into adulthood. 

If you are doing this alone, you can still hold a money meeting with yourself. Look at your budget, figure out what you need to keep in mind for the coming month, and be consistent so you can make improvements and become financially literate once and for all. 

Make The Most Of Offers And Discounts

Don’t forget to make the most of offers and discounts when you do have to spend money. You can download the Honey add-on for your browser, and this will automatically input any active codes into the discount box when buying online. You can also save physical coupons. Just make sure you don’t use them as an excuse to buy! 

Start Investing A Percentage Of Your Income

Investing is one of the only ways you can build wealth for the future. Saving will only take you so far, and over time, money in savings depreciates as the cost of living rises. By investing 5-15% of your income, you can begin to build wealth. There are even apps you can use for this if you’re a novice! 

Read At Least One Book On Money Each Year

Learn as much about being financially smart and independent as you can by reading at least one book on money each year. There are so many out there that can give you helpful hints, plans, and ideas on what to do about your mindset. You can also follow useful social media pages for a quick fix. Think you don’t have time to read? Listen to an audiobook instead! You can do this while walking, commuting, cleaning, cooking – just about anything! Click here to get two free audiobooks! You’ll get so much more done and learn a lot while being productive. You will learn so much, and you never know where doing this could lead you. 

It really is the small habits that help you to make significant changes in your life. The little habits above will help you to improve your financial situation substantially, so don’t put them off! 

How do you manage your funds and ensure you are not over doing it?

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