Small Financial Habits That Can Transform Your Money Over Time

Small, consistent action can be instrumental along your journey

I've noticed many people emphasize that without consistency, meaningful change is unlikely. However, setting smaller, more achievable goals can make it easier to stay on track and build lasting habits.

Photo by Sonaal Bangera on Unsplash

Rome wasn’t built in a day, and neither are your finances! When I reflect on the most impactful financial changes I’ve made, they all began with small habits that grew through consistency. I don’t know about you, but when I set overly ambitious goals, it can sometimes zap my motivation. Instead, I’ve found that making small, manageable changes to my habits helps me stay on track and ultimately achieve my long-term goals.

I’ve compiled a list of the changes that I believe have contributed to my greatest successes. While not all of them (or any) may work for you, I encourage you to take inspiration from these habits and create your own. By building habits that align with your journey, you’ll be well on your way to reaching your financial goals.

1. Automate Your Finances

Whenever I’m handling anything manually with my finances, I always ask myself, “Is this something that can be automated?” The answer may not always be yes, but the more you automate, the simpler and less stressful your finances become. Here are some areas where automation can help:

• Bills and Other Expenses: By setting up automatic deductions for your bills, you can avoid late fees and penalties. This not only makes life easier but can also have long-term benefits, such as improving your credit score, depending on the expense. Personally, I only have a few bills that I need to pay manually each month.

• Investments & Savings: I’ve set up automatic transfers each month into my Roth IRA and savings account. This ensures I’m consistently saving without having to remember every month. Of course, I still go in and make manual transfers if there’s extra money or if I need to move funds to my checking account. While it’s good to give yourself some flexibility in your budget, automating these areas helps keep you on track.

Making automation a regular habit in your finances can save you time, energy, and stress. Once set up, it’s a "set it and forget it" approach that works wonders!

2. Track Your Spending (Even If It’s Just for a Month)

If a full budget feels like too much to tackle right now, tracking your spending can be a more manageable first step that still provides valuable insights. Without being aware of where your money is going, it can be difficult to pinpoint areas for improvement in your financial habits.

There are plenty of ways to incorporate spending tracking into your routine. You can use one of many apps designed for this (I personally use Monarch and love it, though it isn’t free). Alternatively, you can track your spending using a simple Excel spreadsheet or even go old-school with pen and paper!

No matter which method you choose, take some time at the end of the month to review where your money went. You might find small “leaks” in your spending that, once addressed, could lead to big savings over time!

3. Implement the 24-Hour Rule for Purchases

My partner knows that when he asks me something, I follow what I call the “24-hour rule.” This means I take a full day to digest and think things through before making a decision. While it can sometimes be (admittedly) annoying, I truly believe it helps us make more thoughtful decisions in the long run.

This approach can help curb impulse spending and encourage more intentional choices. Try creating a “wish list” for items you’re tempted to buy and see if you’d still want them a day or two later.

4. Pay Yourself First

Often used as motivation for automated savings, the concept of “paying yourself first” means prioritizing savings before any discretionary spending. Whether it's for retirement, debt repayment, or building an emergency fund, setting aside money each month for these goals can help fuel long-term growth.

If this feels overwhelming, start small! Focus on building the habit of consistency rather than worrying about the dollar amount at first. There is no rule stopping you from increasing the amount later on.

5. Round Up Your Purchases for Extra Savings

My bank offers round-ups between my checking and savings accounts. For example, if you spend $4.50, it rounds up to $5.00 and puts the extra $0.50 into savings. Those small amounts really add up over time!

The best part? It plays into the psychology of effortless saving. You hardly notice the change, but it makes a big difference in the long run. It’s like putting your savings on autopilot without any extra effort.

If your bank doesn’t offer this feature, you can still apply the same concept to your manual transactions. The key is to build the habit of consistently setting aside a little extra without even feeling it.

6. Increase Your Savings & Investments by 1% at a Time

My 401(k) has a feature that automatically increases my contributions by 1% every year. I’ve made it a point to take full advantage of this, because, as mentioned in the previous point, it allows me to boost my savings without feeling the pinch. It’s a simple way to gradually grow my retirement fund without any extra effort on my part.

The best part is that small increases like this are much easier to stick with compared to a big jump all at once. Over time, these small adjustments add up, and before you know it, you're saving more than you originally planned. This strategy can apply to other areas of your finances too, such as building an emergency fund or paying down debt.

7. Unsubscribe from Unnecessary Expenses

Let’s face it: the future is a world full of subscriptions. I’m not a fan of it either, but it seems to be where we are at. To keep your finances in check, it’s important to stay on top of them and review your subscriptions regularly. Cancel any that you no longer use as soon as you notice them. It’s so easy to put it off, forget about it, and then get hit with another charge!

Taking a few minutes each month to go through your subscriptions can save you from unnecessary expenses and help you keep your budget on track. It’s a small task that can make a big difference in the long run.

8. Check Your Finances Weekly

Even just 5 minutes a week can help you stay on top of your finances and avoid any surprises. Focus on the key areas: spending, savings progress, and any upcoming bills or transfers you need to keep track of.

The first time might feel a bit challenging, but sticking with it can turn it into a stress-free habit that will support you on your financial journey.

9. Set Small, Achievable Financial Goals

Goal setting can be almost like a cheat when it comes to your financial journey. I recently wrote about setting SMART goals if you would like to learn more.

10. Educate Yourself on Personal Finance

Check this one off! Because as long as you're subscribed to me, you're already on the right track.

But seriously, learning about financial concepts and continuing to grow your knowledge can have a lasting impact on your journey. It doesn’t matter whether you get your information from blogs, books, podcasts, or something else—the key is to find a method that you enjoy and can stick with.

Start Small and Never Stop

Financial transformation is all about consistent, small actions. It’s those little changes that add up to big results over time. The key is to keep moving forward, even if it’s just one small step at a time.

So, pick one habit to start working on today. Whether it’s automating your savings, tracking your spending, or reviewing your subscriptions—just choose something that feels manageable for you.

And remember, it’s all about progress, not perfection. Financial success doesn’t come from being perfect, it comes from making small, steady improvements that build up over time. Keep at it, and you’ll see the change!

I’m curious to hear what you feel are some of the best habit changes you have made in your life? What are the ones you stick with to this day?

---

The details in this post are for educational purposes and may not be appropriate for your specific financial situation. Please always do your own research before making any investment decisions.

Please note that this post is not sponsored by any of the companies mentioned. All opinions and information shared are based on personal research and experiences.