While you may have ambitious money goals, the key to reaching them is building a collection of smaller everyday habits. By taking baby steps that become second nature over time, you’ll hopefully be able to improve your financial situation. Here are some small money habits you can develop today to help yourself grow.

Important Money Habits that You Should Nurture

1. Auto-Transfer Money into Savings

Setting up automatic transfers is one of the easiest ways to save. To make headway on your goals, auto-transfer a few coins into your savings account each week.

2. Plan Your Purchase

Instead of making a quick run to the drugstore to buy a few items here and there, plan out your shopping trips. Make a list of exactly what you want to buy, and how much you’re going to spend. By having a list and sticking to it, you’ll be better at avoiding impulse buys or picking up items you don’t really need.

The same goes for things you buy online. Figure out what you really need, how much you can afford to spend, and wait at least a few days before making the purchase. If it’s not an essential item, try to wait 30 days before adding it to your cart.

3. Save Money with Substitutions

Zero in on what’s most important to you and spend the most in those areas. In categories that aren’t as important to you, consider economizing or finding less-expensive alternatives.

4. Pay Yourself First

If you want to make sure you’re not overspending, create a budget. But if you want to grow your savings, pay yourself first. That means that the first thing you should do when you get your paycheck is to set aside some of your money toward savings. Then you can live off the rest.

If you only pay yourself after your bills and expenses are taken care of, you run into the risk of not saving enough to hit your big-picture goals. You can do this by auto-transferring dollars into a savings account or saving a percentage of your take-home pay each month.

5. Send Your Savings into a Savings Account

If you’re making a concerted effort to save in different areas of your life, make sure the money you save goes toward your savings. Otherwise, it’s easy to spend the savings, leaving you back where you started.

6. Save Your Bonus Cash

If you get a raise, had a fantastic month freelancing, take on a side gig, or net a work bonus, commit to putting away some of it. While you may want to enjoy some of the extra money – which is perfectly okay – allocate a percentage of this “bonus money” toward your saving goals.

7. Have a Plan for Spare Change

That change jangling at the bottom of your pocket? Dump it in a jar and earmark it for a specific saving goal. If you empty your jar a couple of times a year, you’ll be surprised at how quickly those coins have added up.

8. Go Lean in One Spending Category

Trying to generate significant savings in every aspect of your life can make you feel spread thin and deprived. Instead, commit to spending less in a specific area. For starters, go for the easy wins. For example, cut back in an area where there’s redundant spending. If you go to the gym just to use their pool, consider getting a pool pass at a nearby recreation centre to save money.

You can also start in spending areas where you’ll have an easier time saving. Let’s say you’re a weekend warrior who lives for Sunday brunch with pals, but you aren’t terribly picky when it comes to what’s stocked in your fridge. In that case, start by saving on groceries that month, and don’t worry about cutting back on eating out for the time being.

9. Track Your Financial Progress                                                               

Set aside some time each month to see how much progress you’ve made on your money goals. How much debt have you paid off, and how much headway are you making on saving for a down payment on a home, or for that dream trip next year? Seeing results will help you stay on track. Plus, it’ll give you a boost in motivation, and could help you ramp up on saving.

Small changes can make a big difference in your financial health.

Source: Mental Floss