2023’s Small Money Habits to Develop

New Year’s resolutions are not well-received. It’s true that many of the lofty resolutions we make for ourselves on January 1 (the “New Year, New Me!” ones) are doomed to failure. But that’s typically because we haven’t given it enough thought to determine exactly how we’re going to accomplish it. Setting aspirational objectives that don’t take into consideration who we are right now or the daily effort it takes to accomplish them can lead us to believe we can’t change.

Think about starting small. There is evidence to back up the claim that dividing large goals into manageable tasks is the key to success. But don’t go one step further than that. Building excellent habits is the key to keeping a good New Year’s resolution (or any goal, really) — a series of modest daily (or weekly, or monthly, or quarterly) victories that feel attainable and will motivate you to keep going.

Include checking the balances of your accounts in your daily routine

Check your bank balance shortly after checking your email in the morning. Even if you are confident that you have enough money to cover your expenses, checking in the morning can help you reflect on yesterday’s spending and refocus your financial priorities for the day.

Check to see if the credit card or banking app you use offers transaction notifications. That way, you can see your balance move in real time when you swipe your card at a local membership grocery.

Establish a budget every month

The word “budget” has several connotations for many people. However, there are several unique methods for tracking your monthly expenses. Try a different tactic this year if you’ve had trouble in the past. Adapting a plan to meet your daily activities is the only way to create long-lasting financial habits. The most important thing is to create a budget that doesn’t feel punishing — and then check back with it every week or so to make sure you’re still on track.

Self-reward responsibly

Limit your paycheck spending! Sort your paycheck as soon as it arrives in your mailbox to reduce the likelihood that you may spend money you don’t need. Pay as many bills as you can in advance. This money regimen doesn’t need much work. Put aside your money for Future You (the money you are saving for your various goals), preferably in an account that is hidden from view while checking your daily spending account. If possible, set up auto-transfers so that you don’t have to do anything. If your main checking account is linked to a savings account, you should also set away some money for any upcoming non-monthly needs, such as vet bills, oil changes, and the like.

Automate your bill-paying and savings

Having trouble developing sound financial practices on your own? Let your accounts handle it. Some billers (such insurance companies) give savings if you set up autopay, and many banking platforms and credit cards offer cash back or “autosave” capabilities (some even reward them by offering you higher interest rates). You may even divide your direct deposit such that your bill payments are made into one account and then automatically deducted from a different account.

Follow your goals’ progress

Use a digital calendar, a spreadsheet, a bullet journal layout, or even a sticky note on your computer screen. Keep track of your progress each month toward a saving or investment objective, whether it’s a trip you want to take in a few months or a down payment for a house. You deserve to see yourself succeed because you are creating something significant.

Journal your thoughts on money every three months

If you’ve spent your entire life being taught that you’re bad with money, accomplishing your financial goals requires mental effort to a large extent. Long-term motivation and engagement can be maintained by developing a good relationship with money, but it takes time to develop a positive attitude about money. There will be a lot of journaling opportunities as you work on dispelling myths and unhealthy thought patterns, from reviewing the financial lessons you acquired as a youngster to rephrasing your inner dialogue when you spend. To really observe the change as you go, aim to check in once every three months. However, make sure to log your progress as well.

Treat yourself responsibly!

Some experts would have you believe that the small expenses, such as your morning coffee, weekly flowers, more expensive toilet paper, and happy hour drinks, are impeding your ability to succeed financially in the long run. These small purchases have greatly increased enjoyment of life. You deserve a reward for all the effort you’ve put into improving your financial wellness, even if you only adopt one of these money habits in 2023.