As a financially independent woman, I can honestly say there’s no better feeling than knowing I’m being as productive as I can be with my money. Financial stability is a top priority for myself and my family, so it only makes sense that I would leverage systems, habits, and routines for maximum financial productivity. Like any habit and routine, it takes time to ramp up, but productive money habits are worth the ramp up work!
I’ve been implementing most of these productive money habits for years and I’m in my best financial position. That’s not a coincidence! If you want to start being productive with your money and see progress on your financial freedom journey, the right money habits can make that possible. I’m sharing the 5 most productive money habits to start implementing today! Don’t wait to form these financial habits!
The 5 Most Productive Money Habits You Can Start Today
#1 Track Every Dollar You Spend
If you don’t tell your money where to go, you’ll end up wondering where it went. Your budget is what tells your money where to go. You tracking your spending is making sure you know where your money went! The best way to know where your money is going is by tracking every dollar you spend.
This is one of the key elements of my money-coaching program. Clients aren’t used to tracking their spending and it often leads to eye-opening discoveries. Subscriptions that have long been cancelled. Expenses that are doing more harm than originally thought. And an awareness of where their values lie, at least, according to their spending.
I prefer tracking my spending with a spreadsheet. I also have my clients use this as well. However, you can track in a notebook, use an app like YNAB or Rocket Money, or leverage a personal accounting software like Quicken.
The point is to start tracking your spending effective immediately and make decisions based on what the data is telling you. You’ll find you have much more power with your money than you thought!
#2 Pay Yourself First
The notion of pay yourself first is one of the key principles of personal finance. It’s also a principle in The Richest Man in Babylon. It basically means that as soon as you earn income, you put a portion of it towards your savings, even before you go to spend anything.
Basically, you treat savings like a priority by allocating a portion of your income to savings or investments before anything else. To implement this, review your budget to see what you can afford to save without touching. Once you know that number or percentage, set up automatic transfers to a savings account as soon as your paycheck hits.
The recommendation is usually 10% of your income, but I understand that’s not possible for everyone. Start with a small amount (like 1% if necessary) and work to increase it over time. Paying yourself first ensures you’re consistently building wealth, and you’re only spending what’s left after saving.
#3 Look at Your Budget Regularly/Schedule Weekly Money Check-Ins
Another one of the most productive money habits you can start today is reviewing your budget regularly. You already should be tracking your spending on a consistent basis, make time to review your money and budget as well.
Dedicate time each week to review your financial standing and plan ahead. Set aside 15–30 minutes every week to look at your budget, check account balances, and review upcoming expenses. Use this time to adjust your spending or allocate funds toward goals as needed.
Regular check-ins keep you accountable and allow you to course-correct quickly. These check-ins can also help you determine if you’ve been spending more than planned. Knowing this as early as possible can help you keep spending to a minimum until your next paycheck comes in.
#4 Set and Review Financial Goals
Are you the type of person who sets goals at the start of the year and then doesn’t really monitor them until the year ends? I was that person too. While I always felt good setting goals, it was a crapshoot if I achieved them or not. I had no plan or strategy to assess and tweak my goals.
Once I started monitoring my goals throughout the year and adjusting based on life circumstances, I actually felt like I was making progress that was fully in my control. Setting and reviewing your financial goals can produce results quicker and more effectively than you thought possible!
First, let’s make sure you actually set goals. Start by forming clear, actionable financial goals to work toward. Write down short-term, mid-term, and long-term goals (e.g., saving for a trip, paying off a credit card, building retirement savings).
Break these goals into smaller milestones and track progress monthly. Goals provide direction and motivation, making it easier to prioritize and stick to your budget. Check out CGS Podcast Episode #162 – My Best Tips for Setting and Achieving Goals for some of the most impactful insights I have related to goals!
#5 Automate as Much as Possible
The great thing about automation is that once you form the habit of automating things, you save yourself so much time. Time that can be allocated to other productive money habits! When it comes to your finances, use automation to simplify money management and reduce stress.
Set up auto-pay for bills to avoid late fees. Automate savings contributions, investment deposits, and even charity donations. Have your paycheck direct deposited into multiple accounts so you can save yourself a few transfer steps.
Automation minimizes decision fatigue, ensures consistency, and reduces the risk of missed payments. You may have to work up to automating things, but once you do, you’ll find your time is freed up to focus on other things needed to improve your financial situation!
Related: 5 Daily Habits for Financial Success
The 5 habits I shared today can transform your financial productivity and give you amazing results. Financial security and stability are things we are all worthy of, but it’s not without work or effort. Start implementing these productive money habits today and watch the magic happen!
What money habits do you already have formed? Which of the habits I shared today will you start implementing? Share your thoughts in the Comments section below!
-Raya
The CGS Team
