What do drinking enough water, exercising regularly, holding firm boundaries, and budgeting have in common? You guessed it – they’re all healthy habits that improve your life. If you’ve been struggling to reach your financial goals or even gain a sense of stability, you may be lacking the habits that will set you up for success.
Read the transcript of this week’s episode below, or head over to YouTube to watch & listen! ✨
Your financial habits can make or break your financial future. By building consistent and healthy financial habits and routines, you are setting yourself up for success and helping you achieve your goals even quicker.
Hello and welcome back to the Happy, Healthy and Wealthy Podcast, the podcast where we discuss personal finance with mindfulness and intention. I’m Nicole, the host of this podcast and the founder of Mindful Money Media, a media company that is dedicated to providing tools for education and growth and helping you just have your best financial life.
Before we get into it, I wanted to share a little bit about myself and why I’m here and how I got here. So my journey started back in May of 2023, and at that point I was just drowning in debt and I felt so much anxiety every night I couldn’t sleep, and I came to the realization that I needed to fix my situation. No one was coming to save me, and if I wanted to change things, I had to do it myself. It was up to me to take action.
In doing so, I was able to pay off $24,000 of debt in a year and a half and counting. This experience was just so empowering that I felt I had to share it with everyone else who is in the same or similar situation. And I know there’s a lot of you out there. So I started blogging and just sharing what I could on TikTok, and giving my own tips and my own experience, and diving into budgeting and the more technical side of personal finance.
So in November of 2024, Mindful Money Media became official. And here we are today. I’m just super excited. And I hope to inspire and educate and or motivate you on your own financial journey.
And that brings us to today’s episode. So I realized how important and how much of an impact our habits have on our finances. I know many of us don’t have healthy financial habits and that’s why we’re in the situation that we’re in. And we weren’t taught how to have healthy financial habits. I think it’s very common, and this is how I felt, and probably how you feel too, like you’re just flailing around in open water and you don’t even realize you’re drowning until you wake up and you just see that you’re surrounded by water with no life support. That’s kind of what it felt like for me.
This is why I am such a huge proponent of mindfulness and just being aware and making informed, intentional decisions. So the first habit that I think you should really start to cultivate is your mindset. I say all the time that your mindset is the most powerful tool you have at your disposal, whether you’re trying to pay off debt or run a marathon or write a book.
Your mindset is what’s going to be the difference between you actually doing the thing you want to do or not. It’s like the old saying goes, whether you think you can or you think you can’t, you’re right. So if you tell yourself, if you fully believe “I’m bad with money and there’s nothing I can do about it,” well, then you’re going to be bad with money and nothing’s going to change.
You need to change the way that you see yourself in order for your actions to align. And without the proper mindset, having those mindset shifts of acknowledging that something needs to change and that you are capable of changing it, you’re going to find it very hard to stick with any habit. And don’t be fooled, working on your mindset is a habit in and of itself.
You have to consistently work to adjust your thinking, especially if you’re not used to it. So I find that utilizing affirmations is a very effective way to instill the habit of positive thinking. It might be uncomfortable for you at first if you’re not used to using affirmations, but I like to think of it as a way to positively gaslight myself for the better.
I also find that it’s easier to start if you’re realistic with yourself. So affirmations like “I’m getting richer every day” don’t really tend to resonate if you only have $10 in your bank account and don’t know if you’re going to be able to pay rent. So it just kind of renders it ineffective. But instead, affirming things like, “I am learning something new every day,” or “I’m capable of changing” or “I can do hard things,” those kinds of affirmations are way more encouraging and just help you build the confidence that you need to take action and stick with these habits that you’re trying to build.
While linked to your mindset, financial boundaries are a habit on their own. So your mindset is going to affect your ability to maintain your boundaries. So it’s vital that your mindset is in good working order. So that way you can hold firm on your boundaries. Just as you would have a boundary with work, like not answering emails after a certain time, or a boundary with a guy that you’re dating, you need to have financial boundaries with both yourself and the people around you.
And I think that the most important, and probably also the hardest boundary to maintain, is saying no. No to what you want internally, your impulses, and saying no to the people around you that are trying to distract you, even if they have good intentions. It could be pulling you away from your bigger goals.
The thing is, you’re going to have to say no to an impulsive purchase at the store. You’re going to have to say no to fun things, even if it feels like you’re missing out. You’re going to have to say no to getting coffee every single day at Starbucks. But it may start to feel restrictive if you only focus on what you can’t do. And all the times that you’re saying no. So don’t.
Instead of getting hung up on what a no. Focus on what’s a yes. What are you doing instead of those things? And what are you gaining from not doing them? So instead of going out and getting a coffee every single day. You can make your coffee at home and have a nice morning ritual. Or instead of going on a weekend trip with your friends, have them over for dinner and make a nice meal together. Or have a potluck or something.
There are ways to still feel fulfilled without spending money unnecessarily. And then also think about what you’re gaining, right? So if you’re someone who goes out to eat almost every night, think about how you’re saving like 200, 300 bucks a week and how you can put that towards paying off your car, right?You’re gaining something from giving something up. So is it really a sacrifice if you’re getting something better in return?
Life doesn’t have to be and shouldn’t be measurable on your financial journey. I think that being too restrictive with yourself is the reason why a lot of people give up. They feel like they can’t have anything. And it just kind of blows up in their face and they go back to how they were before.
In order to prevent that, in order to make sure that you stay the course, you have to give yourself something. You have to have some limits with yourself in order to create balance. So if you really like your coffee out every single morning, find something that you can get rid of instead of that to counter it. Find ways to incorporate a little bit of joy so you are less inclined, hopefully not at all inclined, to give up.
Make sure that what you are allowing yourself is intentional and that is not cutting into your goals. So if you say, “I’m going to allow myself to buy one thing from the store every week, something that’s not essential, something that’s just for fun.” Make sure it’s just one thing. Don’t go crazy. Don’t lose control. Keep your eye on the ball, girl.
Being intentional is such a huge aspect of maintaining your financial boundaries. And honestly, the whole financial journey in general, because you have to be able to avoid impulse purchases and be strong in the face of temptation. Like getting a promo email from your favorite company that’s having a sale. I would suggest unsubscribing from those emails, at least temporarily. And you need to be able to cultivate an environment where you can succeed.
So in order to do this, it requires you to know yourself, to know your strengths and your weaknesses. If you’re someone who really enjoys eating out, but you’re spending like $800 a month on it and you can’t afford that, clearly it’s become a weakness for you. So give yourself a budget and stick to it, and then implement habits that are going to help you maintain that boundary. So whether that’s deleting food delivery apps or meal prepping so you have food for the week and aren’t going to go order McDonald’s because you have food in the fridge already cooked.
That’s what’s going to support you on your journey. And those are good examples of creating financial boundaries to support where you feel like you might be lacking. But don’t forget that you can also utilize your strengths as well. So if you’re someone who’s really good at finding deals on clothes that you like, and you just get a rush of excitement from shopping a sale, capitalize on that strength.
Find deals on necessities, things that you actually need and that might be costing you too much money. So whether that’s groceries or utilities or your insurance, you can use coupons and shop sales like you like, negotiate bills for things like internet or your phone, or even switch companies like insurance. Car insurance, that’s a big one. Shopping around. And that way you can find savings and that’s something you’re naturally good at, but you’re using it in a more productive way.
Now, you probably know what I’m going to say next. You’ve probably been waiting for it, but a very important habit that you need to start doing if you haven’t already, is budgeting. Besides your mindset, I would say that budgeting is the single most important factor in turning your finances around. It forces you to know your numbers, know what’s coming in, what’s going out, and just develop an awareness that helps you make better decisions with your money and helps you live within your means.
Budgeting also basically forces you to develop other important habits, like checking your accounts and monitoring your balances, and making sure that your bills are paid on time. Budgeting is powerful not only because it arms you with the knowledge of what’s going on with your own money, but because you’re no longer going to be over drafting and having no money left over at the end of the month.
And if those things are still happening to you, something’s definitely wrong. You should definitely go back and go over your budget because you’re spending more than you’re making. So you’re probably going to either have to cut things out and or make more money. The point of budgeting is so that you can responsibly allocate your funds to your needs and your wants, and your savings and investing and debt pay off, and you ensure that your obligations are met.
So all of your necessities, like your rent or your mortgage, your car payment, your utilities, your groceries for yourself and your family, putting gas in your car, all of those things are taking care of. And then whatever money’s left over, if there’s any, hopefully there’s any, you can spend that on fun, on going out to eat, or saving for a vacation or a down payment or something like that.
There is so much peace of mind in knowing that your bills are taken care of. Like you don’t have to worry about having enough money for the basics, and there’s so much flexibility to be gained with a budget. It really gives you the freedom to control your money, not the other way around. And that being said, with all of these benefits, you need to find a budgeting method that works for you, so that way you can stick with it and reap the benefits.
I’m personally a fan of spreadsheets. I just like how versatile they are. They’re easy to use for me and you can automate a lot of it, so it saves time. And if you’re interested, if you’re also a spreadsheet person, I sell the same exact template that I personally use and that I created myself on my website, so I’ll link to that down below.
But even if you’re not a spreadsheet person, that’s fine. That’s okay. There are other methods that you can use, like the old fashioned way: pen, paper or notebook, or if you wanted, you could print out a budgeting template and use that.
And there are also apps out there to help you budget. I know that Dave Ramsey has an app, Every Dollar, and Caleb Hammer just came out with one. I’m pretty sure it’s called Simpler Budget, so you can check those out as well. I think apps can be useful for a lot of people just because they’re so convenient. It’s right on your phone, so it’s accessible, and I think a lot of them are able to, link to your bank accounts and so it can import all the data directly to the app, which is super useful and saves a lot of time.
Speaking of saving time, setting up automations is going to help make the budgeting process a lot easier and a lot quicker, and just save you time in general. So this is not exactly a habit because you kind of just set it up once and let it run, but I find that automating helps a lot of people because you don’t have to think about it.
You know that your bills are getting paid, and as long as you make sure that you have the money in your account, you’re good to go. And of course, making sure to keep track of it in your budget. So the first and most obvious automation is putting your bills on auto pay. It could be any bill from your rent to your utilities or your credit card.
This ensures that your bills are paid on time and that you don’t get charged any extra late fees or anything. So it saves you money. And the same goes for other debt payments like your car or student loans. Just put it on auto pay so you don’t forget about it. Also important is automating your savings. So this is really important if you’re trying to build an emergency fund or save up for some big, important expense like a house or a car or a wedding.
And if you’re just getting started, you might not really be sure about how much you can afford to save or how much you need to save. So you might just kind of throw what you can. Add it when you can. But as you get to know your numbers better, you are going to be able to determine how much you can realistically put in your savings.
Maybe it’s a $100 every payday that goes straight from your checking account to your savings account, preferably high yield savings account. Just do what works for you, whether it’s 10 or 15% of your income. Work those numbers out. Of course, you can do this manually, but I just find that it saves time and ensures that you’re not going to forget anything.
And then you can also automate your investing as well. So if you’re lucky enough to have a 401(k) through your employer, especially if there’s a match, I highly recommend taking advantage of that and utilizing that resource. Otherwise, if you don’t, or even if you want to just invest extra, you can use accounts like an IRA, a Roth IRA, or brokerage account just based on what your needs are.
Now, I’m not a professional in this regard, so I can’t tell you what to invest in. That’s up to you, dog. Do your own research. But what I can tell you is to make sure that the money that you’ve had automatically sent to your investment account, or even manually sent, is actually getting invested. And it’s not just sitting in the account, because that’s a mistake that I know a lot of people make. So don’t do that.
The research and learning that goes into this whole process and this whole journey is super important, and I think you need to make a habit of it. You need to make a habit of accumulating knowledge and educating yourself. I feel like a lot of us in our financial freedom journeys, a lot of us get caught up in this pursuit of money, but we also need knowledge in order to get there.
Without knowledge, you’re not going to know to put your money in a high yield savings account instead of a regular savings account, so that your money can earn more money. You’re not going to know little things like that. You’re not going to know how much you need to save and invest for retirement in order to have the kind of life that you want to have 40, 30 years from now.
So it’s very important that you make a habit out of reading books and watching YouTube and listening to podcasts like this one. Take courses or even invest in professional help like a financial planner or financial advisor. It is so important that you are able to make informed decisions. You’re not going to be able to know everything about everything, but having some basic knowledge and knowing where to get yourself started and knowing when it’s time to work with a professional will put you above, far above everyone else who doesn’t even look at their statements.
There is no one size fits all solution, otherwise everyone would be a millionaire. But what you can do is set yourself up for success by building healthy financial habits. Work on your mindset and your financial boundaries so that you can finally stop being your biggest up okay and focus on budgeting and living within your means and making a habit out of educating yourself and learning new things so that you can improve your knowledge and your skills in personal finance.
The process, the journey is not going to be easy, and it’s going to take time, but it’s time well spent. Thank you so much for listening and or watching the podcast today. It means so much to me and I’m just so stoked that I’m able to come on here and talk about something that I love to talk about, and I’m so passionate about, and being able to build a business and a community around something that I love.
So if you enjoyed this episode, please like, subscribe, share with a friend and most importantly, leave a comment of your financial habit that has helped you because we can all learn from each other here. Thank you so much once again and that’s all I have for now. But stay well and I’ll see you in the next one. Bye.