5 Everyday Habits That Quietly Improve Your Financial Life

Here’s how five simple habits can start working in your favor one day at a time.

 

The Power of Daily Reflection on Spending

Most people look at their expenses once a week or even once a month. The problem is that by the time you have looked at your spending, you’ve already forgotten all the little details that are important.

Daily reflection on what you are spending, even if it’s just a quick five minutes, can help you to see what you’re actually doing with your money in real time. You don’t need to have any sort of spreadsheet in place in order to do this; all you need to do is have a little notebook or the notes section of your phone.

List three things down, like what you spent, why you spent it, and how you felt about spending it. The last part, the why, is where you start to have awareness of the money that you are spending. 

It could be that you realize that you bought something when you were on your lunch break because you were bored, rather than actually needing it. 

The goal isn’t to feel guilty about what you’re spending on; it’s all about making sure you are fully aware of what you are spending and helping you to slow down before you purchase items. It can make a big difference in making your money go further.

 

Why ‘Micro Consistency’ Beats Big Resolutions

To have a fresh start when it comes to a new year, they often say that it’s going to be a new year, new budget, new you. The problem with this type of mindset is that when you make resolutions in the new year, they can quickly become something that gets forgotten about. 

However, making small repeated changes is far better for your financial life than making big, massive changes all at one go. Doing things in a micro-consistent way is all about making sure that you are staying steady with the change that you are making, rather than feeling like you are being perfect. 

This might be just that you’re moving $5 of savings into your savings account every month rather than trying to move $250 all at one go. You don’t question little actions or need much motivation for them; you just end up doing them. 

Whereas when you have big lump sums that you’re trying to aim for, it can be a little bit of a downer when you see a chunk come from your bank account into your savings, not to be used. 

Try having a focus on being consistent rather than trying to make huge changes all at the same time.

 

Turning Downtime Into Productive Resets

Everybody needs to have a little bit of downtime, but not all downtime that you plan is actually going to restore you. If you find yourself scrolling through social media or doing online shopping more often than you should, then you probably are making impulsive choices, and you’re going to be feeling really drained. 

The key is to make sure that you use your time to reset your energy in a way that actually helps support your goals, rather than aimlessly scrolling and spending money. That doesn’t mean that you’re not able to relax in the way that you want to; it just means you need to find ways that are going to recharge you properly. 

It might be listening to a podcast about personal finance while you’re cooking dinner or reading a book at the end of the day, but these tiny little things help you to go through your day a little bit more grounded. 

If you often find yourself online gaming or using your phone rather than scrolling down on social media, find something else that relaxes you but feels a little bit more mentally challenging. For example, a few minutes playing a simple focus game like Solitaire can help to calm your mind without you having to scroll and feel like you’re on a downer.

How to Build Discipline Without Burnout 

Financial discipline isn’t about having complete restriction; it’s all about making sure that the choices that you’re making each and every day are ones that align with your overall goals. If you have a goal to save, then you need to be making a conscious effort each day to ensure that you are working towards that goal.

The problem is, if you have too much focus on one thing, it can lead to you feeling burnt out, which is not what you want. This is what leads to spending blowouts and undoing all of the months of progress that you have made. It’s best for you to make sure that you’re as flexible as possible. 

Rather than saying that you’re never going to order takeout again, think about setting yourself a guideline, like having a monthly budget for your takeaways or allowing yourself one takeaway a week. This is the sort of mindset that helps keep budgeting in mind, while also allowing you to stay consistent when you are trying to save or be more disciplined with your money.

Being disciplined with your money isn’t about being perfect; it’s all about making sure that you are constantly working towards your goals in small ways rather than trying to do it all at once.

 

The Compounding Effect of Small Wins Over Time

It is very easy to underestimate how powerful little changes and small steps can be. Saving a few dollars, paying a bill a little bit earlier, and resisting impulse purchases may not feel significant in the moment, but they all add up, very similar to how compound interest works.

Each time you follow through on a habit like this, it’s something that is improving your finances and making you a little more in control of them. Have you ever found this? It would be great to hear about it in the comments below.

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