Healthy Money Habits That Instantly Improve Your Finances

Having a healthy relationship with money is easy to do when you know what healthy money habits to follow. No matter your financial situation, plenty of healthy financial habits exist to help you build a healthy money mindset. A mindset that helps you understand why is personal finance important so that it’s easier to achieve financial independence.

If you’re ready to ditch your bad spending habits, then these healthy money habits are perfect for you!

Habits that help you avoid an unhealthy relationship with money and instead help you develop healthy spending habits.

As someone who swears by these healthy money habits, I know the world of a difference they truly make.

You are going to learn about 13 of the absolute BEST healthy money habits you need to be following right now!

That way you can get into the right mindset of accomplishing good financial goals and get closer to financial freedom.

This post is all about must-know healthy money habits to put a complete end to your bad money habits.

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Must-Know Healthy Money Habits

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What Is A Healthy Income?

Searching this particular question will yield so many different answers. From people saying that you need to be making $70,000 a year or over $100,000 a year for you to consider your income a healthy one.

However, you don’t necessarily need to be making thousands and thousands of dollars each month to get by.

The best way I like to answer this question is, a healthy income is one where you can live comfortably!

Meaning, you’re able to sleep at night in peace knowing that your bills are paid, you have a roof over your head, food in your belly, and a healthy amount of money saved up.

Using the habits below will help you make changes here and there to make the most out of your money. That way you can consider your income, no matter how much you make, as healthy income!

What Is A Healthy Money Mindset?

Listed down below are some of the best healthy money habits to help you get into the right mindset of knowing how to stay financially healthy!

1. Clear Debt ASAP

Debt is something that you always, and I mean always, want to avoid at all costs!

Mainly because having bad debt can hurt your personal finances as well as your credit score negatively.

I personally know of people that have gotten themselves into A LOT of debt. Causing them to struggle and work endless hours trying to pay off debt they’ve accumulated.

On top of this, they’re unable to rest comfortably at night due to the financial stress they’re under!

One common way you can get into massive debt is by using a credit card irresponsibly. Which is why the first money habit to get into is to learn how to clear out debt.

You really want to make sure that you work hard to pay off debt fast so that interest doesn’t accumulate! Make sure that you write down how much debt you have so that you know what to clear out first.

Once you list everything out, use either the debt snowball or debt avalanche method to get out of debt.

After you successfully get out of debt, continue to use ways to stay out of debt for good!

2. Pay Close Attention To Your Bills

Rather than becoming comfortable with paying expensive utility bills, analyze them first before making payments.

How much do you pay for utilities? It’s easier to answer this question when you pay close attention to your monthly bills!

Doing so gives you a better understanding of how much money is spent on bills each year. As well as where you can make changes in order to reduce monthly bills.

If you want a lower electric bill, there are plenty of ways to save electricity. Such as switching to LED light bulbs or air drying your clothes on a rack.

Or if you want a lower water bill, use the many water saving tips available to reduce your water bill. Such as turning off the faucet when not in use or showering with a bucket.

As you use the many different ways to save money, you’ll be able to avoid the question of, why is my bill so high?

3. Surround Yourself With The Right People

As crazy as it may sound, being around the wrong crowd can cause you to adopt bad money habits.

Habits such as giving into spending triggers and excessively using credit cards, not prioritizing saving money, ignoring your debt, and not thinking money matters!

Pretty much habits that are the complete opposite of good financial habits for young adults worth adopting.

This is why it is important to surround yourself with people who have good financial goals!

People who truly understand the personal finance basics and can share helpful personal financial management tips with you.

Even if you don’t have a desire to be rich, it’s still worth your while to listen to their advice. That way you don’t have to go on wondering, what are the best habits for a healthy lifestyle?

Following their advice can potentially put you in a much better financial situation.

4. Avoid Looking Rich When You’re Not

The drive to want to pass off as looking rich when you’re not can leave you broke as heck!

It’s crazy to think there are people who don’t care about being broke. Because the thought of people looking at them and thinking they are successful is unfortunately far more important.

There are even times where people will max out their credit cards or take out loans to afford their lifestyle. Which then puts them in massive debt that can be very difficult to get out of!

Before buying expensive items, ask yourself if the opinions of others, who you don’t even really know, even matter. Are they far more important than you using your money to reach your financial goals and get further in life?

This is why it is important to have different spending habits than those people.

Spending habits that you can use to your advantage to build wealth and ensure you reach financial freedom!

5. Build Up The Courage To Invest

Although saving is a good habit to follow, knowing how to invest money to make money is also incredibly important!

Don’t get me wrong, investing your money can be a bit scary. Especially if you are completely new to it and aren’t sure what the outcome will be.

However, this is why I want to stress again the importance of surrounding yourself with the correct people! People that know the ins and outs of investing.

That way you can learn how to invest money in stocks or how to invest money in real estate in order to generate more money!

Another way to go about learning how to invest money for beginners is to buy books on investing. A really great book to help you get started is The Little Book of Common Sense Investing.

Regardless of which route you choose, building the courage to invest opens up so many opportunities to increase wealth overall. Even if you can only invest a little bit of money in this very moment, do so right now!

6. Increase Your Sources Of Income

One of the top financial habits of millionaires is to have multiple sources of income.

For a very good reason of course!

Because let’s face it, nowadays having only one income just isn’t enough.

Think what could happen if you get an injury and can no longer physically work for a couple of months? Obviously this would lead to a disaster as you wouldn’t have any cash flow coming in.

This is where having more than one income is very important. On average, most millionaires have any where between 3 to 7 streams of income. The more streams of income you have, the more likely you are to achieve financial freedom!

Whether you get a second job or start a side hustle today that brings in a lot of money, always make sure you have more than just one income.

You can even take it a step further and start one of the many side hustles for passive income. That way you can make money without actually working.

7. Incorporate Reusable Items

This particular habit is one that hardly ever crosses anyone’s mind. And that is to get rid of all your single use items and introduce reusable times into your life!

The best way to view reusable items is like an investment that will save you a lot of money as time goes on.

Being that there are a numerous amount of money saving reusable items available, I have a couple of blog posts going over several of them. Make sure to check out:

The amount of money you save will start to really add up the more reusable items you start using!

Though the amount might not seem like a lot in the beginning, every little bit you can save truly counts!

8. Track Subscription Fees

One of the many types of spending habits that most people participate in are signing up for multiple subscriptions. On average, most subscriptions usually cost anywhere between $10 and $20.

Depending on how many you actually have, this can quickly add up!

Oftentimes there may even be some that you no longer use, but keep forgetting to cancel. As the months go on, more and more money gets deducted from your wallet.

I don’t know about you, but I cannot tell you the number of times I’ve signed up for a subscription because it was free for the first couple of days, forgot to cancel it on time, and ended up having to pay the full amount.

For this reason, make sure to get into the habit of tracking your subscriptions. Once a month, take the time to look over your current subscriptions. If you notice any that you no longer use, cancel them!

An amazing app plenty of people use to manage their subscriptions is Rocket Money. Not only can you track monthly subscriptions, but you can also cancel them with much ease!

9. Make A Budget Your Best Friend

Payday is exciting because you now have money to spend on everything your heart desires. However, when you don’t have ways to track spending, it is easy to overspend without even knowing it.

Leaving you with hardly any money leftover to save. That is where having a monthly budget comes in handy!

There are many reasons you need a budget which is why it is important to learn how to make a budget.

A budget is what gives you an overall view on how much money you are spending and on what specifically. Having one in place will help you pay off monthly bills, have money to spend on yourself, and still have money leftover to put into your savings account!

It essentially helps you manage money better and save money to prepare you for the future.

So if you don’t have a budget or aren’t the greatest at it, learn some budgeting tips, make a budget and make it your best friend, and stick to it!

10. Buy Stuff Based Off Needs vs. Wants

It’s no secret that you are going to spend your hard earned money. But making purchases solely based off wants versus needs all the time can set you back financially!

It’s common to buy something solely because it looks cool or because it’s on sale.

However, keep in mind that companies will strategically market their items to get you to buy them impulsively.

By falling for their tactics, you can end up buying things that don’t serve much purpose to you.

Those that are successful financially do the opposite and buy things based off needs rather than just wants. In addition to this, they ask themselves how a certain purchase can benefit them.

Is this item going to save me money? Is it going to help me make money? If I leave without buying said item, will it impact me negatively in any way?

These are just a couple of questions to ask yourself before making a purchase. Asking these questions helps you work on getting into the correct mindset. Ensuring that you buy things you truly need, but that will also benefit you at the same time in one way or another!

So think of this as one of the many good spending habits examples worth following.

11. Hold Off On Upgrading Too Soon

Caving in and upgrading too soon, when not necessary, can cause you to spend unnecessary money. Nine times out of ten, the item you currently own is more than enough to last you a couple of years before needing to upgrade!

Take upgrading to a new car for example. People tend to buy a new car and spend the next couple of years paying it off.

Once they complete their final car payment, they get the urge to upgrade to a better one. Most likely a more expensive one at that.

By going this route, you continue the cycle of having to then make another car payment every month for the next couple of years! Rather than choosing to not upgrade and not having a car payment at all. And it’s no secret that cars are not necessarily cheap nowadays!

So before you do any type of upgrading, analyze the current item you own. If it works just fine and does what you need it to do, then skip out on making an unnecessary costly purchase.

You can then use the money you would’ve spent and instead invest it to make more money!

12. Skip Out On To-Go Coffee

Although to-go coffee is delicious, it can definitely cause a huge dent in your wallet.

Especially if you buy a cup every single day!

If you buy coffee daily, write down how much you spend per day to figure out the total spent per month. Then multiply that number by 12 months to see how much you pay for coffee per year.

It may come as a surprise that your yearly total comes out to a couple of hundred dollars. And if your total comes out in the thousands range, then that’s a sign to cut back a bit!

Don’t worry though because you don’t have to give up coffee completely. Fortunately for us coffee lovers, it’s possible to cut the cost of coffee by at least HALF by making it at home!

All you really need is a coffee maker that makes delicious tasting coffee to get started.

There are so many videos on YouTube and coffee recipes online teaching you how to make good tasting coffee at home. The best part? You can make certain coffee drinks at a fraction of the cost of to-go coffee that taste just the same, if not better!

If you happen to be a busy college student that depends on coffee to get through your day, then this is one of the best saving habits of students worth adopting!

13. Set A Long Term PLan

By now you might’ve heard the saying, “You only live once so live life to the fullest”.

The problem with this particular quote is that some people tend to only live in the moment. Which puts planning ahead for their future on hold.

Actively thinking about your future and having a long term plan gives you a sense of direction. Helping you get on the right path to success!

Though it’s great to have a 5 year or 10 year plan, a lot can actually happen in just 1 year.

Which is why it is important to have several 1 year plans. Focusing on accomplishing these plans helps you slowly, but surely, get closer to your 5 or 10 year plans.

Reaching your goals at the end of the year also motivates you to keep pushing through! At least until you completely accomplish all of your goals.

After all, there’s a reason why the saying, “slow and steady wins the race” exists.

Though not considered one of the many spending habits quotes, it is still a good quote to keep in mind!

This post was all about the best healthy money habits that help build a healthy money mindset.

Instead of guessing what are 10 healthy habits to follow regarding healthy money, you now know of 13 brilliant ones!

The first step in getting into the right mindset is understanding how these habits can help you.

From there, you can then start adopting these health is wealth tips to get where you want to be in life.

The more healthy money habits you follow, the quicker it will be to achieve all of your financial goals.

So before more time can pass by, stop waiting to change your habits and start now!

If you found even the tiniest bit of information from this post helpful, just know that it was made simply for you.

Healthy Money Habits That Instantly Improve Your Finances