Do you know what never goes out of style?

Good money habits.

They’re not just something you should practice when you don’t have money — they are habits you should maintain whether you’re struggling or thriving financially.

A good money habit is an investment to yourself and your future, and trust me, they can go a long way.

It helps with financial stability, independence, and success. More importantly, it gives you control over your finances, reduces stress, and allows you to build the life you want.

What Is A Good Money Habit

“Financial freedom is available to those who learn about it and work for it.” —Robert Kiyosaki

Good money habit is the practice of mindful saving, spending and investing.

It’s about being intentional with your finances and cultivating a positive money mindset.

Whether it’s frugal habits, making wise spending decisions, or following a minimalist budgeting approach, learning how to develop good money habits can help you save money, reduce debt, build wealth, and become a more financially savvy and responsible person.

By adopting these positive habits into your daily life, you can create a solid financial foundation and work towards long-term financial success.

How To Build Good Money Habits

Developing good money habits takes time, but with consistency, they become second nature, a part of your daily routine.

Here’s a step-by-step guide to help you build and maintain these positive habits:

1. Set clear financial goals
   Define what you want to achieve. Ask yourself: How much do I need to save for short-term and long-term? How much debt do I have? How much do I need for retirement? How much do I need to make to sustain my desired lifestyle?
2. Start small
   Choose one or two money habits to focus on first, preferably start with the ones that have greater financial impact. Gradually add more as you become comfortable.
3. Create a budget
   Track your income and expenses to understand where your money is going and adjust accordingly so it aligns with your short-term and long-term financial goals.
4. Automate your finances
   Set up automatic transfers to savings, bill payments, and investments to stay consistent.
5. Review your finances regularly
   Whether it’s daily, weekly or monthly, do a routine check-in on your money and spending, your financial goals and make adjustments to your strategies as needed.
6. Stay accountable
   Share your goals with a trusted financial advisor, finance/money coach or use financial apps to stay on track.
7. Educate yourself
   Continuously learn about personal finance and investment through books, courses, or podcasts. Also, stay on top of economic news and current events as these can have indirect impact to your finances (example: tariffs, consumer price index and inflation).
8. Reward yourself
   Saving money is the goal but it’s also ok to reward yourself. Be intentional and discipline on how you spend your money.
9. Stay consistent
   Building habits takes time, but with discipline and consistency, you will achieve financial success.

Now that you know how to create good money habits, read on next to learn the 25 money-saving habits that can help you save more and reach your financial goals.

25 Good Habits To Save Money

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1. Track your income and expenses

This is an easy one but often ignored.

It’s the first step, and a very important one, to saving more money and building wealth. (Think about, if you don’t do this, how will you know where you’re money is going?)

All you need to do is create a habit of recording your income and spending.

There are plenty of free tutorials online on how to create your own expense trackers (see below), or use a budgeting app like Mint to track your spending.

If you prefer non-digital options, try traditional methods like the popular budget binder or budget planner and organizer.

2. Adopt the 24-hour rule

Sales are happening everyday and the temptation to buy is higher than ever. And, there’s also FOMO.

But don’t give in.

Avoid impulse purchases by waiting at least 24 hours before buying non-essential items. This helps you decide if you really need it or you just want it for the sake of wanting it.

If you do make an impulse buy, double check the return policy that full refund is allowed before purchases. In the case that you change your mind, you could always get a full refund.

But by all means, hold off on buying when possible.

3. Meal plan and cook at home

Aside from large purchases like home goods and appliances, eating out is another cost that adds up.

Consider meal prepping and cooking at home to reduce dining out and take out costs.

Planning your meals in advance not only save money on groceries it’s also a great way to improve your culinary skills and eat healthier as you have more control on what goes in your food.

4. Review your subscriptions

Make a habit to review all your subscriptions on a monthly, quarterly and yearly basis, and cancel the ones that you no longer use.

This also includes free subscriptions like online newsletters and marketing emails as they’re usually embedded with affiliate links designed to make you spend.

5. Use cashback and rewards programs

Did you know that there are apps that pay you to walk? Or companies like Cathay Pacific will reward you with Asia Miles if you successfully complete their wellness challenges?

Take advantage of cashback offers, rewards programs, and credit card points available to your region to get money back on purchases you already make and activities that you already do.

6. Shop with a list

Spend 5-10 minutes to create a shopping list before heading out to the store.

A shopping list can help you avoid unnecessary or impulsive purchases as well as keep you on budget.

7. Opt for pre-loved or second-hand

Check your local garage sale, consignment shops or Facebook Marketplace before shopping at the store.

These second-hand marketplaces are often filled with great deals and mint condition products.

Buying second hand item isn’t just a great way to save money but it reduce waste and promote sustainability.

8. Use public transportation or carpool

With the gas prices on the rise, consider using public transportation, carpooling or biking instead of driving everywhere.

Not only do you cut down on gas but you avoid parking fees, and other maintenance costs involved.

Alternatively, opt for car sharing services that allows you to rent the car when you need it. You only pay when you use the car. This is a great way to save money needed to buy a car as well as the ongoing vehicle expenses like insurance, fuel and parking.

9. DIY instead of paying for services

Sometimes rolling up your sleeves is quicker (and cheaper) than hiring help.

From basic home repairs, beauty treatments like manicure and pedicure, or simple car maintenance, these are all basic skills that you can learn online for free.

It’s a win-win — you save money and learn a new skill.

10. Negotiate bills & subscriptions

Everything is negotiable — your bills included.

Call your internet, phone, insurance or any service providers to negotiate for a better rate.

While the difference might not be astronomical but they add up, and the additional money can go towards your savings, debt, investments or other purchases.

11. Pay yourself first

Always pay yourself first after every paycheque.

This is a non-negotiable habit that you must make.

Doing this ensures that you’re saving money and making investments for your future.

Consider setting up automatic transfers at the start of the month to your savings account before spending on anything else.

12. Follow the 50/30/20 rule

The 50/30/20 rule is a popular budgeting method on how you should allocate your income:
50% to needs
30% to wants
20% to savings or debt repayment

Other budgeting rules to consider are: 80/20 rule, 50/15/5 rule, 60/20/20 rule and 70/20/10 rule.

While budgeting rule can help improve your finances, it’s important to remain flexible, and consider your own financial goals.

13. Use separate accounts for savings

Create different saving accounts for different purposes.

It’s a great way to keep yourself on track and reduce the temptation to use more spending money than needed.

14. Set specific savings goals

Each savings should have its own specific goals.

Whether it’s an emergency fund, vacation, or a big purchase, be clear with what that amount is.

Having a goal makes saving easier, and reduces overspending,

15. Automate savings and investments

Each year, set aside some time to think about how much money you need to save and how much contribution you want to make for each of your savings.

Consider setting up auto-transfers to ensure consistent contributions without having to think about it.

16. Save for rainy days

Life happens, and unpredictably.

So it’s important to have an emergency fund that’s easily accessible either in cash or cash equivalents.

The purpose of having an emergency saving is to help you cover unexpected expenses like medical bills and accidents.

17. Practice gratitude

This isn’t a savings tip, but having gratitude can boost your wealth and increase your abundance.

Appreciating what you already have can help reduce the urge to spend on things you don’t need, and minimize the feeling like you don’t have enough.

18. Avoid lifestyle inflation

It’s a misconception that when you make more, you have to spend more.

You don’t.

Your spending rate doesn’t need to match your income gain.

Spend within your means and only buy what you need.

Save the extra earnings instead.

19. Find free or low-cost entertainment

This one is self-explanatory.

Look for free or budget-friendly activities that won’t bleed your wallet.

Activities like hiking, going to the library, window shopping, joining free community events, or a movie night at home, are all simple ways to save money whilst providing heaps of entertainment.

20. Surround yourself with like-minded people

You are the sum of the people you surround yourself with.

Spend time with people who value saving, have smart financial habits, possess a positive money mindset and live a lifestyle that you aspire to have.

This positive influence can motivate you to build better money habits and take action towards your financial goals.

21. Learn to say no (set boundaries)

Know your spending limits and stick to it (refer to your saving goals and budgeting sheet to find out).

When you know your limits, you minimize the risk of overspend, especially under social pressure situations.

You will also be more confident and assertive in declining expensive outings or unnecessary purchases that don’t align with your financial goals.

22. Stay educated on personal investment and finance

Be financially literate.

Read books, watch videos, or listen to finance podcasts to continuously improve your money management skills.

By adopting these positive financial habits, you can save more money, be financial savvy and build a secure financial future.

Resources to improve your finance:

• The Psychology of Money by Morgan Housel
• The Old Money Book: How To Live Better While Spending Less by Byron Tully 
• You Need a Budget by Jesse Mecham 
• Millionaire Mindset and Success Habits by H.J Chammas
• Rich Dad Poor Dad by Robert T. Kiyosaki 

24. Use positive money affirmations

Our words can affect the way we think, feel and act.

Repeating positive affirmations about money can help reinforce a healthy financial mindset.

Read this post to learn more about money affirmations and words to avoid.

25. Limit the use of auto-payments

While auto-payments make our lives easier by preventing missed payments and penalties, they can also lead to overspending.

Merchants may charge more than stated, fraudulent charges can go unnoticed, or credit card annual fees that could be waived by contacting customer service.

Reviewing monthly statements and direct deposit invoices helps avoid extra charges and ensures you’re only paying what’s needed.

Be Financially Responsible

Saving money is not about deprivation; it’s about making smarter choices that set you up for financial success.

Whether you make $18/hour or $18000/month, learning how to build good money habits can help you create a strong foundation for financial stability, independence, and peace of mind.

The sooner you start, the better off you’ll be.

So take control of your finances today and watch how small changes can lead to big rewards in the future!

You may also like:

• 40 Positive Money Affirmations To Attract Wealth And Abundance NOW
• 11 Bad Habits That Make You Unhappy
• You Snooze, You lose

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