Want to feel like you have more money without earning more? It often starts with one simple thing: routine. Small, repeated actions often have a bigger impact on our finances than occasional bursts of motivation. Let's explore micro-habits that can have a big effect on your budget.

The process of creating habits requires us to be able to shape our own behaviors. It's almost like playing an instrument 🎻– ​​initially, it requires focus and conscious action, but over time, it becomes part of our "muscle memory." So if we want to stick with habits that aren’t always fun at first, it helps to make them a little more enjoyable. Our brain feels more motivated with an activity that brings us pleasure.

Psychologists say habits work best when three elements are present: a trigger, an action, and a reward 🏆. Knowing what actually motivates you makes it much easier to stick with a new habit.

So how does this work in real life? Let’s start with one of the most important money habits.

Now that we know how habits actually stick, let’s talk about one that really matters: knowing where your money goes. Regularly checking your income and expenses might not sound exciting, but it’s one of the most useful money habits you can build.

When you keep track of what you earn and what you spend, your finances stop feeling vague or confusing. Seeing your transactions grouped into categories makes patterns pop up pretty quickly - the little expenses that add up, the things you spend on without thinking, and the areas where you could easily save without feeling deprived.

There are different ways to track and analyze your income and expenses, such as using a spreadsheet, an app, a notebook, or a combination of these. Choose a method that suits your preferences and needs. For example, if you are comfortable with technology, you might prefer using an app that automatically syncs your bank accounts and categorizes your transactions. If you like to have more control and customization, you might prefer using a spreadsheet that allows you to create your own categories and formulas. If you are more of a visual person, you might prefer using a notebook that lets you draw charts and graphs to visualize your data.

The next habit is automating the most important components of your budget. What do I mean by this? First and foremost, regularly reviewing your accounts. Such a review can be done once a week and doesn't need to be done more often. You can set a reminder to review your accounts. Maybe it's Friday afternoon with your coffee. Maybe it's Monday morning while you're easing into the week. Just 15 minutes to see where you stand. You'd be amazed how many people never actually look at their accounts regularly. This micro-habit gives us awareness of how much we have and whether we have the resources. And then we also know how much of that money we can spend.

In addition to reminders you can try recurring transfers. These are for savings and investments. Once these transfers are set up, you don’t have to think about them and your money starts working for you automatically.

Automatic payments make paying for subscription services very convenient. However, this solution has a downside - it's easy to forget you've purchased a subscription and cancel it before the next payment is debited from your account. It's worth developing the habit of checking every few months which services you're currently subscribed to and whether you really need them.

We’re surrounded by more things to buy than ever before. These spending traps are becoming more common. Simply being aware of how often we’re tempted and how easily we can be influenced - already puts us in a better position to make smarter, more intentional spending choices.

Take buying new clothes, for example. It’s easy to fall into the habit of shopping on impulse - especially when something looks perfect in an ad or pops up on your feed at just the right moment. Instead of buying it right away, try giving yourself a full day to think it over.

If you’re still thinking about it the next day, it might actually be something worth owning. But often, once the initial excitement wears off, you realize you didn’t need it as much as you thought. That pause creates space to decide whether the item truly fits your lifestyle, your budget, and your long-term needs.

Practicing mindful spending - taking time to consider whether a purchase aligns with our financial goals - can help prevent unplanned spending. Before making a purchase, ask yourself: "Is this purchase necessary?" "Is it useful?" and "Is it within our budget?" This type of self-regulation supports our decision-making and limits impulsive spending, helping us maintain mindfulness and reduce the impact of distractions.