11 Positive Money Habits You Can Honestly Start Adopting Today (2024)

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Good habits are like baby steps for getting where we want to be. Sure, we may lose our balance, stumble, and fall (and possibly cry) along the way, but one thing's certain: we're making progress! And when it comes to our finances, good habits can seriously propel us (and our bank accounts) forward. Here are some positive money habits that'll help get you on your way toward reaching your goals. 1. Set a specific goal that's important to you. 2. Create a budget so you're aware of the money coming in and the money going out. 3. While it can be suuuper tempting, avoid using a credit card for every single purchase — especially if you're unable to pay the bill in full each month. 4. Keep your credit use low to improve your credit score — especially since these scores can help you get approved for a loan. 5. Automate your bill payments so you never miss a due date. 6. And do the same for your savings account — automatically transfer money from each paycheck straight to your savings. 7. Save or invest bonuses, gift money, and any "unplanned" income. 8. Avoid spending on repeat purchases by simply checking to see if you already have the item at home. 9. Shift toward thinking about long-term benefits — not just short-term pleasure. 10. Before you take on more debt, ask yourself if there's another option. 11. Lastly, stay open-minded when it comes to your finances — don't automatically turn up your nose at every new management strategy. If this sounds like music to your ears (and bank account), check out more of our personal finance posts. FAQs

    With a little practice, your money goals could be right around the corner.

    by Jasmin SuknananBuzzFeed Staff

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    Good habits are like baby steps for getting where we want to be. Sure, we may lose our balance, stumble, and fall (and possibly cry) along the way, but one thing's certain: we're making progress! And when it comes to our finances, good habits can seriously propel us (and our bank accounts) forward.

    VH1 / Via giphy.com

    Here are some positive money habits that'll help get you on your way toward reaching your goals.

    Also a reminder: Any progress — even the smallest of milestones — is worth celebrating. It takes a lot of courage to make a change, after all. So when you start seeing progress, don't forget to pat yourself on the back for how far you've come!

    1. Set a specific goal that's important to you.

    Bravo / Via tenor.com

    Goals and habits pretty much go hand-in-hand — name a more iconic dynamic duo; I'll wait. Creating goals can actually help you pinpoint the types of habits you need to develop to achieve what you want. Maybe saving up to buy a house in three years is an important goal for you. Putting aside a certain amount of money each month could be a habit that puts you on your way.

    2. Create a budget so you're aware of the money coming in and the money going out.

    Bravo / Via giphy.com

    When you know how much you make versus how much you spend, you have the power to "assign" a job to every dollar you make. This means you're in control of how much you can spend on your favorite restaurant, the amount you save, and even how many new ~wonderful smelling~ candles you can buy this month.

    Also, get into the habit of budgeting before you spend. Don't work in purchases you already made so you can pretend you budgeted for those items (been there, done that!). The numbers might look scary at times. But looking at your budget with honest eyes can help you get real about where you need to cut back. This way, you can afford more in other areas where it matters to you the most.

    3. While it can be suuuper tempting, avoid using a credit card for every single purchase — especially if you're unable to pay the bill in full each month.

    11 Positive Money Habits You Can Honestly Start Adopting Today (2)

    Tim Robberts / Getty Images

    Credit cards are uber convenient (no more standing at the cash register struggling to stuff dollar bills back into your wallet while an impatient line forms behind you!). In some situations, avoiding credit card purchases may be almost impossible. But if your circ*mstances allow it, pick and choose what you swipe your card for.

    Of course, we've all dreamt of the amazing, *free* future plane tickets we can book using credit card points. But points may not always be worth the interest charges on your bill if you don't pay the card in full each month. Those interest charges will only make paying off debt seem more and more out of reach.

    BTW, some of our readers suggested practical, tried-and-true ways to pay down credit card debt!

    4. Keep your credit use low to improve your credit score — especially since these scores can help you get approved for a loan.

    NBC / Via giphy.com

    One benefit of not putting everything on a credit card = your credit utilization gets lower as you make payments. Credit utilization is pretty much a business-y way of saying "the amount of available credit you have to spend versus how much of that money you use." Maintaining a low utilization means you only borrow a small amount of the credit available to you — and boy, does that work wonders for your credit score!

    FYI, credit utilization is just one of several factors that affect your credit score. It can take longer than expected to improve a low score — but it doesn't always have to. If your credit score isn't where you want it to be, Experian Boost might help you instantly bump it up by adding your regular bill payments to your Experian credit report. And did I mention you can do this for *free*? Seeing the instant score increase can be super motivational when it comes to whipping your finances into shape.

    5. Automate your bill payments so you never miss a due date.

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    Nobody wants to miss bill payments. Life happens, time flies, and before you know it, the due date is in your rearview mirror. Setting up autopay for bills ensures they get paid in a timely manner — and you won't incur the wrath of late fees for missing a payment. You can schedule payments to leave your account the day after you receive each paycheck.

    6. And do the same for your savings account — automatically transfer money from each paycheck straight to your savings.

    11 Positive Money Habits You Can Honestly Start Adopting Today (3)

    Jgi / Getty Images

    "Out of sight, out of mind" is the idea here! When your paycheck hits your account, you might intend to transfer some of it to your savings. But you get caught up in paying for bills, groceries, and gifts for loved ones (and for yourself). Then, you end up not being able to save anything at all.

    When a specified amount automatically leaves each paycheck, you don't see it, so you won't even consider touching it. It's already all safe and sound in your savings account, making you wealthier. This is what those financial experts you read about call "paying yourself first" — and it's such a game changer. Now you can pay for necessities and spend on wants without worrying about how much room you have for saving.

    For even more ways to increase your savings, check out these small but effective money-saving tips.

    7. Save or invest bonuses, gift money, and any "unplanned" income.

    NBC / Via gifer.com

    Almost nothing compares to the all-encompassing joy of getting money on your birthday. And, when you see a little extra cash tacked onto your paycheck, it can be sooo tempting to spend it on that new TV or gaming system you wanted. This unplanned income — aka "found" money — can actually go a long way toward your savings goals. In fact, the best way to use found money is to treat it like it's invisible!

    You didn't intend on having it, which means you didn't budget for it anyway. Invest it or stash it straight into your savings.

    8. Avoid spending on repeat purchases by simply checking to see if you already have the item at home.

    Disney / Via tenor.com

    How many times have you bought something you already own just because you didn't think you'd be able to find it amongst your possessions? Then, lo and behold, you find it with little to no effort — turns out, you didn't have to spend money on a replacement! Trust me, I know the feeling all too well.

    Get in the habit of doing a sweep of your home to see if you can locate the item you need before you decide to purchase a new one. You'd be surprised by how often you end up finding it, thus saving yourself some cash.

    9. Shift toward thinking about long-term benefits — not just short-term pleasure.

    11 Positive Money Habits You Can Honestly Start Adopting Today (4)

    Jgi / Getty Images

    Get in the habit of thinking about your money in the long run. It's often easier to only think six months ahead, especially when we're younger. A staycation in the city or our next birthday celebration feels much closer in time. But planning for the bigger picture can seriously pay off — especially if it's, like, 40 years away.

    One way to do this is by putting away small amounts of money each month for retirement (we have a handy post that answers the most common questions about 401(k) plans). Another tip: Choose investments that you think will thrive over the course of several years instead of just the next two months.

    That's not to say that you can't enjoy that staycation or avidly plan for your birthday. Just do so in a way that still accommodates your long-term goals.

    10. Before you take on more debt, ask yourself if there's another option.

    ABC / Via pinterest.com

    We've honestly grown so accustomed to being surrounded by debt — our family, friends, neighbors, and coworkers all have it, so what's the big whoop if we do too? Applying for a new credit card now feels almost as normal as drinking water. And that just means having yet another obligation to put money toward each month.

    If you need extra money, explore other options first. Ask your family members if they could lend you some. Apply to external scholarships before you decide that student loans are the only way to finance your education. Or, see if you can take on a side gig to make extra money (while still getting everything done at your main job and considering your well-being, of course!).

    11. Lastly, stay open-minded when it comes to your finances — don't automatically turn up your nose at every new management strategy.

    20th Century Studios / Via pinterest.com

    Money management can be tricky! And, there is no one *perfect* way to save, spend, and pay off debt. It can be easy to stick to methods that have served you in the past but get less effective as the years go on. Keep an open mind when it comes to learning from others' experiences and hearing new advice. Not everything will resonate with you — and that's okay. But giving some new strategies your best effort could end up working out for you!

    If this sounds like music to your ears (and bank account), check out more of our personal finance posts.

    11 Positive Money Habits You Can Honestly Start Adopting Today (2024)

    FAQs

    What is the 50 30 20 rule? ›

    The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

    What are the five tips Dave Ramsey gives that will ensure you are good with money? ›

    Dave Ramsey: 5 Things That Will Make You Wealthy in 2024
    • Get a Budget. Ramsey explained that it's unreasonable to think you'll manage your money well without a plan. ...
    • Don't Have Debt. ...
    • Stop Spending Beyond What You Earn. ...
    • Build Your Retirement Fund. ...
    • Generously Give To Others.
    Dec 29, 2023

    What are the 4 general life values that can influence your money habits? ›

    Compare your scores in each of the four Life Values (inner, social, physical, and financial).

    What is one money habit you would like to start? ›

    Saving money might be on your financial to-do list. You might want to plan a dream vacation or stash away money so you can buy a home. Committing to making a budget that includes a line item for savings is one money habit that can get you there. But you can go even further by being more intentional with your spending.

    What is the 20 savings rule? ›

    Key Takeaways. The 50/30/20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%).

    How to budget $5000 a month? ›

    Consider an individual who takes home $5,000 a month. Applying the 50/30/20 rule would give them a monthly budget of: 50% for mandatory expenses = $2,500. 20% to savings and debt repayment = $1,000.

    What is the 80 20 rule Dave Ramsey? ›

    There's an 80-20 rule for money Dave Ramsey teaches which says managing your finances is 80 percent behavior and 20 percent knowledge. This 80-20 rule also applies to constructing a healthy life. Personal wellness is 80 percent behavior and 20 percent knowledge.

    What is the 30 day rule? ›

    The premise of the 30-day savings rule is straightforward: When faced with the temptation of an impulse purchase, wait 30 days before committing to the buy. During this time, take the opportunity to evaluate the necessity and impact of the purchase on your overall financial goals.

    What does Dave Ramsey say is the most important thing to do? ›

    Dave Ramsey | The most important financial principle is contentment. Only contentment brings peace.

    What is the #1 common denominator of financially successful people? ›

    That said, work is the first part of being successful. The secret to financial success starts with doing what the financially unsuccessful aren't willing to do.

    What are the 4 rules of money? ›

    The Four Fundamental Rules of Personal Finance

    Spend less than you make. Spend way less than you make, and save the rest. Earn more money. Make your money earn more money.

    What are healthy money habits? ›

    Save early and consistently, and create a budget to manage spending effectively. Pay off high-interest debts first and consider consolidation or refinancing for better terms. Regularly check accounts, apply the 24-hour rule to avoid impulse buys, and use expert resources to learn how to be better with money.

    What habit makes you rich? ›

    Investing is the path to wealth.

    Just saving will make us lose money year after year due to inflation. We need to have money saved, yes, but also money invested to compensate the inflation and potentially increase our wealth.

    What is a bad money habit? ›

    Spending More Than You Earn

    This is an easy habit to get into because it simply means spending without conscious thought. But, going back to point number one, if you've got a budget, you'll know exactly how much you earn and can then budget for all your necessities and savings first before making additional purchases.

    What are good financial behaviors? ›

    If it feels good and is good for you, the money behaviours should be encouraged. These could include living debt-free, saving and investing regularly, or spending within one's means.

    Is the 50 30 20 rule outdated? ›

    However, the key difference is it moves 10% from the "savings" bucket to the "needs" bucket. "People may be unable to use the 50/30/20 budget right now because their needs are more than 50% of their income," Kendall Meade, a certified financial planner at SoFi, said in an email.

    What is the disadvantage of the 50 30 20 rule? ›

    It may not work for everyone. Depending on your income and expenses, the 50/30/20 rule may not be realistic for your individual financial situation. You may need to allocate a higher percentage to necessities or a lower percentage to wants in order to make ends meet. It doesn't account for irregular expenses.

    Why is the 50 20 30 rule helpful? ›

    The rule simplifies the process of saving and spending by categorising your budget into three main categories: needs, wants and savings. This can help you achieve financial security for your future needs while managing your current expenses effectively.

    How to work out 50/30/20 rule? ›

    A 50 30 20 budget divides your monthly income after tax into three clear areas.
    1. 50% of your income is used for needs.
    2. 30% is spent on any wants.
    3. 20% goes towards your savings.

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