Hello, reader. 💚
I've been expecting you for quite some time.
I suggest you grab a notebook and a pen because what you're about to read might completely change the way you think about money. If you follow the tips below, you'll be able to wave goodbye to overspending. That "friend" of yours is about to get cut off.
A plan, regardless of the situation, is usually what's missing when things become messy. When it comes to your finances, keeping everything tidy and organized is the only sensible approach—no exceptions. One of the most common reasons people overspend is the lack of structure in their financial habits.
In this article, I'll show you how to build a healthier relationship with your money and your spending habits. Have you ever wondered where your salary disappeared only a week after payday? It almost feels as if there are tiny holes in your wallet, letting your hard-earned money slip away without you noticing.
I wish I could comfort you with a little white lie, but this isn't one of those situations. What I can promise you is this:
If you genuinely apply the habits below, you'll already be one step closer to becoming someone who controls their money instead of constantly wondering where it went.
1. Write Down All Your Bills at the Beginning of Every Month
This money habit is probably my absolute favorite. To be completely honest, that's probably why I've placed it first on this list.
There is something almost therapeutic about knowing exactly what needs to be paid, how much it costs, and when it's due. Whether you prefer writing everything in a notebook or creating a spreadsheet in Excel, it doesn't really matter. What matters is that you actually do it.
If you have the option, try moving all your utility bills to the same payment date. Unfortunately, bills aren't here to make your life easier, so you'll have to do that yourself.
I recommend choosing the earliest due date among all your bills and using it as your monthly "Bills Day." That way, you'll know everything gets paid before any deadlines, without having to remember multiple dates throughout the month.
There's no point in choosing your "lucky number" if it means paying late. Your future self will appreciate peace of mind much more than good luck. I like to think of paying bills the same way I think about taking out the trash. It's not particularly exciting, but it needs to be done.
As soon as my paycheck arrives, I already know exactly where part of it is going. First part goes directly into savings. I pay every bill afterwards, clear all my financial obligations, and only then move on to the fun part.
Trust me—shopping feels a lot better when you know your electricity isn't about to get cut off.
2. A Well-Balanced Budget (60/10/20/10)
I suppose that if you've already read my article, "Saving Money Feels Impossible? Here's Why.", you'll probably remember Mr. Binge and understand what I mean when I say "a well-balanced budget."
There's no point in creating a budget if following it makes you miserable. A budget should help you control your money, not make you feel like you're being punished.
Now, what exactly does a well-balanced budget look like?
The answer is different for everyone. Not everyone is willing to compromise on their "wants" as much as I am, and that's perfectly okay.
For me, a balanced budget looks something like this:
60% for necessities
10% for wants
20% for savings
10% for long-term investments
Or, if you prefer, 60/10/20/10.
This is simply the system that works best for me. It doesn't have to become yours.
The goal isn't to copy someone else's budget. The goal is to create one you'll actually stick to.
Obviously, you can adjust those percentages to fit your own lifestyle.
I believe Beverly prefers the 60/30/10 method (needs/wants/savings). She hasn't started investing yet because she's still a recovering shopaholic. Her current goals are building up her carrot stash and saving for an exotic holiday. I'm very proud of her because she finally started saving. She even managed to give up credit cards. They grow up so fast, don't they?
Ruby, on the other hand, has never been a huge fan of budgeting. She says it's too boring and insists that the universe will somehow save her from overspending.
Whether that's manifestation or pure luck, I honestly don't know... but I've never seen her run out of money.
I've asked her about it more than once, but she refuses to tell me how she does it.
Hopefully, she'll reveal her secret in the next article, "Which Saving Method Matches Your Personality?" I've been trying to crack her saving strategy for months. No luck so far.
3. Stick to Your Budget
I believe this one goes without saying.
Creating a budget without any intention of following it is like buying a treadmill and using it as a clothes rack. Completely pointless.
It won't feel easy in the beginning. If you've never limited your spending before, having a monthly allowance for the fun stuff may feel restrictive. That's completely normal. The good news is that budgets aren't meant to stay the same forever.
You can always adjust them until they fit your lifestyle instead of fighting against it. Even creating your very first budget is already a win.
If you've always struggled with money, don't try to build the perfect financial system overnight.
Start simple. Really simple. Try a 60/40 budget. Needs. Wants. Nothing else.
Stick to it for six months and focus on building one thing: Self-discipline.
During that period, avoid using credit cards or borrowing money from friends and family unless you're paying back an existing debt. If you already owe someone money, make paying them back your first priority.
Celebrate every small win along the way.
After those six months, once sticking to your budget starts feeling natural, reduce your "wants" category just a little. Create a separate category for savings.
It doesn't have to be 20%. It can be 2%. Then 5%. Then 10%.
Progress is still progress.
And finally… You're far more capable than you think.
The hardest part isn't saving money. It's deciding that this time, you're actually going to stick with it.
4. The Pay Yourself First Method
If I had to pick just one saving method for the rest of my life, this would be it.
The Pay Yourself First Method works perfectly for me because I enjoy sorting out all my money in one sitting.
Since I'm already paying my bills at the beginning of the month, it only makes sense to move money into my savings and investments at the same time. This system works especially well for me because I get paid on the first day of every month.
Of course, Pay Yourself First has nothing to do with when you pay your bills. It's a simple philosophy that encourages you to pay your future self before you spend money on anything else.
Instead of saving whatever happens to be left at the end of the month, you save first and learn to live on the rest.
If I'm being precise, "Pay Yourself First" is one of the principles Arkad learned from his mentor, Algamish, in The Richest Man in Babylon.
By following Algamish's advice, Arkad went from being a poor scribe to becoming the richest man in Babylon. It's a great read.
5. Track Every Expense
This is one of those habits that isn't exactly fun because it requires consistency.
You're out with friends? Write down how much you spent.
Made a spontaneous purchase? The spreadsheet is waiting for you.
I'd rather see everything on a bigger screen, so I keep most of my spending records in an Excel
spreadsheet on my laptop.
And I have to admit... no matter how often I use Excel for work, I still don't like it.
Obviously, I don't carry my laptop everywhere, so the Notes app does the job perfectly until I get home.
Below is the expense tracker I use to keep track of my daily spending.
Once I created this spreadsheet, budgeting became so much easier.
At first, I couldn't make it look exactly the way I wanted. After a few tweaks, though, it's exactly how I imagined it.
I've included formulas that automatically calculate how much you've spent on needs and wants.
There's also a pie chart that gives you a clear visual breakdown of your spending habits at a glance.
6. Keep Spending In Cash
The reason is simple.
If I just tap my card everywhere I go, I slowly lose track of how much I've actually spent.
Well... I kind of know.
But the numbers in my head are never as accurate as I'd like them to be.
If an unexpected expense comes up, I'll obviously use my card.
But I like knowing that I don't have to.
That's why I keep an emergency bill tucked away in a separate pocket of my wallet, just in case.
It doesn't have to be $100. Keep whatever amount makes you feel comfortable. The important part is knowing it's there if you ever need it.
If cash isn't really your thing, that's perfectly fine.
You can keep using your card if that's what works best for you.
Just make sure it's connected to an app that shows your transactions immediately.
That way, it's much harder to lose track of your spending.
And speaking of cash...
There's another reason why I still prefer using it.
7. Feed Your Piggy Bank Every Day
The first thing I do when I get home is empty my pockets.
As you already know, I prefer paying with cash, even though card payments are often more convenient. Paying in cash not only helps me avoid overspending, but it almost always leaves me with some spare change.
And guess where it goes? Straight into my piggy bank.
Every single day. It's almost like having a pet.
Except this one doesn't eat your money... it saves it for you.
I'd say that's a pretty good deal.
If there is, I simply split it between my savings and investments.
I hope you enjoyed this article and found it helpful.
I also hope it inspired you to take a closer look at your own money habits.
Remember, you don't have to master all seven habits overnight.
Start with one. Stick to it until it becomes second nature.
Then move on to the next one.
Small habits have a funny way of turning into big results.
Me, Beverly and Ruby will be here to help make your saving journey a little easier—and hopefully a lot more fun.
