Every January, we set lofty financial resolutions. Save more. Spend less. Finally, stick to a budget. But by February? Let’s just say the motivation fizzles out faster than the New Year’s champagne. Sound familiar?
Coming up with the things we’d like to improve or change in our lives is the easy part – keeping those resolutions is where the real work starts. When life gets busy and motivation fades, our goals often get pushed to the back burner, and that’s why having a strategy is essential.
One tool that’s risen in popularity over the years is habit stacking. It’s an easy and effective way to gain momentum when it comes to any goal, even financial ones.
Habit stacking is exactly what it sounds like: stacking a new habit on top of an existing one. Think of it as piggybacking on something you’re already doing or using the buddy system by pairing a new habit with an existing habit.
For example:
• After you brew your morning coffee, you check your bank balance.
• After you pay a bill, you transfer $5 into savings.
• Before brushing your teeth at night, you review your daily spending.
Attaching a new habit to an established habit (or inserting it into an existing routine) makes it easier to remember and implement during those beginning stages than starting a new routine from scratch.
It doesn’t require you to rely on willpower or force yourself to remember or schedule your new habit. Your morning coffee becomes a trigger to check your finances. Paying a bill becomes a cue to save a little extra. Over time, these small actions add up. You’re not just sticking to your resolutions—you’re building new financial habits that last.
Most of us can’t start the day without that first cup of coffee (or a cold energy drink). This ritual is the perfect “buddy” for a new financial habit. While you brew your coffee, take one minute to log into your banking app and check your balance or scan for unusual transactions. It’s a quick way to stay on top of your finances and set the tone for mindful spending all day.
We all love a little online shopping, especially with post-holiday sales everywhere. Here’s a twist: every time you make a purchase, transfer a small amount—say $5—into your savings account. It’s like giving yourself a gift that keeps on giving. Think of it as a necessary self-induced tax.
Bonus: you’ll think twice about unnecessary purchases when saving is part of the process.
When paying a bill, take an extra minute to review the expense and ask, “Can I reduce this?” Maybe you can switch to a cheaper phone plan, bundle insurance policies, or cut back on streaming subscriptions. It’s a simple habit that can save you hundreds over the course of the year.
Before brushing your teeth or settling in for the night, take two minutes to review the day’s spending. Did you stick to your budget? Are there any adjustments you need to make for tomorrow? This nightly check-in keeps your finances at the forefront of your mind and helps you track your progress.
Starting small and slowing incorporating new habits into your current routines is what makes this strategy so effective. You don’t need to overhaul your life or spend hours trying to live a completely different lifestyle. Focusing on one or two habits that take less than five minutes helps you build consistency. Consistency helps those new baby habits graduate and grow into automatic, seasoned habits that can show next year’s resolutions the ropes!
Slow and steady wins the race! Let’s turn those ambitious financial goals into manageable actions that we can stick with long after January is over. One cup of coffee, one bill, one step at a time. You’ve got this!
The blog post above was shared from BALANCE. For more information and similar resources, click here .