If you develop the habits of success, you will make success a habit.

— John Maxwell

A simple yet powerful statement from one of my favorite books of all time – The 15 Invaluable Laws of Growth by John Maxwell. 

Long-term financial success is not a result of the overarching grind year-over-year, but rather the smaller and more incremental daily, smart money habits that drive every thought, decision, and action in our wealth-building journey.

Sound money habits unlock the path to achieving our most audacious goals by laying the strategic and foundational groundwork to help us get to our desired lifestyle. These habits are paramount to establishing a healthy personal relationship with money and creating the financial freedom you seek.

It doesn’t matter how old you are or how much money you have — the single greatest determining factor for how far your wealth will take you is the level of intention behind your routine money moves. 

Smart money habits don’t only relate to the act of spending (although this does play a major role).  It’s important to look at your behaviors and communication style around your finances as well. Are you comfortable looking at your account statements? Do you shy away from certain conversation topics with family and friends? How do you typically respond to a new financial concept you come across? Is there a lot of fear surrounding money for you?

I get it! It’s not always fun to ask yourself these kinds of questions. Prioritizing your financial wellness and putting forth the effort to shift deeply engrained habits and beliefs about money takes time. Put one foot in front of the other, build awareness, and make small adjustments, day by day.   

Looking for where to start? Who doesn’t love a listicle?! 

Here are my top 13 favorite smart money habits to set yourself up for long term financial success.

Your 13-Step Smart Money Habit Plan for Financial Wellbeing 

1. Know Your Net Worth

Developing better money habits will inevitably result in a net worth that trends higher and higher over time because these habits will encourage saving more, investing more, paying down more debt, etc. Commit to reviewing your net worth on a monthly basis. List out all your assets (checking accounts, investment accounts, real estate, etc.) and debt (credit cards, personal loans, mortgages, etc.). This will allow you to put eyes on where you stand, evaluate your progress, and identify areas that need improvement.

2. Pay Yourself First

When you get paid, make it a habit to identify what personal financial goals you’re going to put these funds towards. Allocate a portion to your emergency fund, Roth IRA, vacation fund, etc. Once you’ve done this, then you can think about how to spend the rest however you wish! 

3. Live Below Your Means

Spending less can often be an equally effective wealth-building strategy than increasing your income. The monthly excess that remains can be used for an emergency fund, for retirement, to pay off debt, for other short-term or long-term financial goals, etc. The point is that you spend less than you earn so that there is indeed this excess. Those extra funds are what will ultimately drive your financial success and help you achieve financial freedom.

4. Establish Meaningful Financial Goals

Write down your short-term and long-term money goals. This might include things like building an emergency fund, knocking out your credit card debt, paying for a child’s college education, buying a house, leaving your day job to be your own boss, or supporting your parents’ retirement. We create financial goals to help us move in the direction we say we want to go — to help us truly identify what it is we want from this life we are living and, ultimately, how our money can help us get there. 

5. Track Your Expenses

Build awareness around your spending and get a deeper understanding of where your money is going and why. Every week, review your bank and credit card statements (this should take no more than 5-10 minutes) and start thinking critically. Do I need this? Do I use this? Do I actually even want this? Not only will this exercise provide insight into what you are prioritizing, but it will help you to create a more informed and aligned plan to achieve your short-and long-term financial goals.

6. Set Up Automatic Payments and Transfers

Automate your bill payments and transfers to savings and investment accounts so that your accounts can do the work for you. Eliminate these tasks from your financial to-do list so that you can spend time on financial matters that need your undivided attention. 

7. Use a Separate Credit Card for Subscriptions & Recurring Expenses (and Pay It Off in Full Each Month)

Designating a specific credit card for your subscriptions and recurring expenses makes it easier to track your monthly charges and spot any unexpected changes. Plus, this setup can save you the hassle of updating all your automatic payments if fraud ever occurs—since most fraudulent activity typically happens on the card you use for everyday spending. Bonus: This simple shift can also make you more mindful of those small, recurring charges that quietly add up over time, helping you stay in control of your finances.

8. Identify Emotional Spending Patterns

It’s important to identify when your spending is related to a specific emotional trigger like boredom, sadness, etc. In other words, any situation where you are subconsciously seeking some sort of external instant gratification or relief. Combat these triggers by learning to make small shifts in your actions to change your emotional state. Find an alternative behavior, like going for a walk or calling a friend. 

9. Wait 24 Hours for Larger Online Purchases

Simply put, it is way too easy to buy things in this day and age. Once upon a time, you had to actually get dressed and physically leave your house during preset business hours in order to buy something. In this era of online shopping, you can purchase anything, anywhere, anytime. It’s a convenience, but also a slippery slope. Before you make larger online purchases, wait 24 hours—if you come back to it, then go for it, but in most circumstances you likely won’t 🙂

10. Create a Healthy Relationship with Debt

In a world where we are all just trying to keep up, please don’t be that person who is visibly rich and reality poor. You are only hurting yourself and your future! Debt can, at times, be a useful tool in creating wealth, but mismanaged and abused debt is a quicksand trap that you do not want to get stuck in.

11. Prioritize Investing

Make a game plan. Proactively invest every single month. I don’t care if it’s $5, $500, or $5,000. Get into the habit of putting money away on a monthly basis and make your money work as hard as you are! Don’t know where to start? Download my free guide outlining 25 actionable strategies to take control of your finances, invest smartly, and build your million-dollar dream portfolio. 

12. Make a Monthly Money Date with Yourself

Managing your money does not need to require a lot of time if you’re consistently engaged. Allocate time on a monthly basis to review your finances, your goals, and your expenses to hold yourself accountable and identify areas that need extra attention moving forward.

13. Track Your Financial Progress

You established your financial goals, identified what it was going to take to achieve them, and executed the plan. Now it’s time to track your progress! It’s not enough to say you want something. You must continually track your efforts towards that goal. And remember — progress over perfection!

Make Financial Success a Habit

With consistent, smart money habits, the outcome you’re seeking will become a reality! Start small, stay consistent, and get in the driver’s seat. You need to be in control of your money, not the other way around. 

Let me show you how much better life is when you’re in financial control.

Learn more about ways to work with me to build these and other smart money habits today and create a life you love with the financial freedom you deserve.