Your Money Habits Matter
A lot of times, people think, “If I just earned some more money, then I wouldn’t have any money problems!” But if that were the case, then why do people who find themselves suddenly flush with cash still struggle?
Time and again, we see people with high incomes living paycheck to paycheck, while people with more modest earnings are saving, investing, and building financial freedom. What is making the difference?
Habits. Not income.
The Myth of “More Money = Less Stress”
It is easy to believe that a higher paycheck is a golden ticket to financial peace, and yes, more income can provide a lot more opportunities. But if your spending and saving habits aren’t aligned with your goals, more money just means more room for lifestyle creep, not security.
The $20,000 raise won’t help if a new car payment eats it up.
A six-figure salary doesn’t guarantee freedom if you use it to move into a new neighborhood, and the mortgage eats away at the gains.
Money doesn’t fix bad money habits — it amplifies them.
So, What are Some Habits that Matter?
Consistent Budgeting (Not Just Planning)
IT’s not about creating a perfect spreadsheet or using the right app. IT’s about checking in regularly about where your money goes, and adjusting as needed. We check our budget every 6 months, just to see if there are any areas we can shift to better align with our goals.
Automatic Saving
Whether it’s $25 or $500 a month, consistency is key. Automatic savings set up through your employer can make savings a priority before the money disappears into spending.
Mindful Spending
Does this purchase align with my values and goals? This simple question and a singular pause can help you redirect your money towards things that actually matter.
Living Below Your Means
This doesn’t mean deprivation; it means having margin. When you spend less than you earn, you gain options. Margin gives you room to save, invest, breathe, and plan for your goals and big agenda items.
Avoiding “All or Nothing” Thinking
You don’t have to be perfect (no one is!). What matters is progress. Building a habit of trying consistently is more powerful than swinging between extremes. You need to have a braces mindset. Changes are not sudden; they are steady and progressive over a long time, but those types of changes lead to long-term advances!
What Habits Look Like in Action
Let’s say two people each earn $75,000 per year.
Person A tracks their spending, cooks meals at home, automates $300 a check to savings, and drives a used car.
Person B doesn’t budget, eats out frequently, takes two vacations a year on credit, and leases a luxury vehicle.
Guess who is building wealth?
Even with identical incomes, their financial futures are on completely different paths.
When Income Does Matter
Let’s be clear — there is a minimum threshold where income plays a vital role. If you’re struggling to cover basic needs, habits alone can’t solve everything. You may need to look at a job change, pick up a side hustle, or take other steps to increase your income. But once your needs are met, your habits can become a powerful part of your financial equation.
Quick Start Habits, No Matter Your Income
Track Your Spending for 30 Days — Awareness is the first step. You might be surprised where your money actually goes.
Automate One Positive Action — A savings transfer, a debt repayment, a retirement contribution. Any of these are great, small options that get things rolling.
Pick One Spending Habit to Reframe — Maybe it’s eating out, subscription services, or impulse buys. Choose one, and make intentional tweaks to what you are doing.
Check In Weekly — A quick review of your accounts helps to build confidence in what you are doing.
Find a Partner — This is not meant to seem self-serving, but a partner who can check in with you, encourage you, and provide outside vision is extremely important. This is what Financial Coaching offers, whether with us or someone else, this would be a huge step to help you change your habits.
Your income sets the stage.
Your habits determine the story.
If you want to change your financial future, don’t wait for a raise. Start with the choices you make every day. Because how you manage your money matters far more than you much you make.
