If you want to become more disciplined with money, start saying goodbye to these 8 habits

When your kid throws a tantrum for a candy bar at the supermarket, you know they need to learn about patience. When they spend their whole allowance on a toy, you know they need to understand the value of saving.

That’s parenting 101.

But let’s be honest, managing money isn’t always that straightforward, even for us adults. It takes a heap of discipline and sometimes, saying goodbye to some hard-to-break habits.

For those of us who want to get better at it, there are 8 specific habits we need to wave goodbye to. I’m going to share them with you, not just as a writer, but as a fellow parent trying to navigate this tricky money management journey. Let’s do this together.

1) Impulse buying

We’ve all been there.

You’re just casually scrolling through an online shopping site, not really planning to buy anything. Suddenly, you spot a cute pair of shoes or the latest gadget that you absolutely must have. Before you know it, you’ve clicked ‘add to cart’ and you’re on your way to checkout.

Sound familiar?

This is impulse buying, and it’s a habit we all need to say goodbye to if we want to become more disciplined with money.

The thing with impulse buying is that it’s not really about the item itself – it’s about the thrill of purchasing something new. But once the excitement fades, we’re often left with something we didn’t really need and less money in our bank account.

If we want to be more disciplined with our finances, we need to resist this urge to buy on a whim and instead focus on making thoughtful purchases that truly add value to our lives.

Quite a challenge, isn’t it? But trust me, your wallet will thank you for it.

2) Not tracking expenses

I can’t stress enough how important it is to keep track of where your money is going.

Let me share a personal anecdote.

I used to think I was pretty good with money. I paid my bills on time, had a little stashed away for a rainy day, and never went overboard with my spending. Or so I thought.

One day, on a whim, I decided to document all my expenses for a month. Every coffee run, every grocery trip, every single time I swiped my card or spent cash. And let me tell you, it was a wake-up call.

I realized that those small purchases here and there were quickly adding up. The $5 lattes, the $20 take-outs – they seemed harmless at the time but were silently eating away at my savings.

That’s when I understood the power of tracking expenses. It might seem tedious, but it gives you a clear picture of your spending habits and helps identify areas where you can cut back.

So if you’re serious about being more disciplined with money, start saying goodbye to the habit of not tracking your expenses. It might be an eye-opener, just like it was for me.

3) Ignoring small purchases

Remember those small purchases I mentioned earlier? The ones that seem insignificant but can add up over time? Well, there’s actually a term for that – it’s called the “latte factor.”

The name comes from the idea that buying a $5 latte every day adds up to around $1,800 over the course of a year. That’s a significant amount of money that could be saved or invested instead.

Many people tend to focus on cutting back on large expenses while ignoring these smaller, daily expenses. However, these small costs can have a big impact on your financial health in the long run.

So if you want to be more disciplined with money, start paying attention to those small purchases. Every dollar counts, after all.

4) Making late payments

Let’s talk about bills. We all have them, and none of us like them. But they’re a part of life.

Making late payments is a habit we need to say goodbye to pronto if we’re aiming for financial discipline. Not only do late payments result in unnecessary late fees, but they can also negatively impact your credit score.

Paying your bills on time should be a non-negotiable. It might not be the most exciting thing in the world, but it’s crucial for maintaining financial health.

Set reminders, create a bill schedule, do whatever you need to ensure those payments are made on time. It’s a small change that can make a big difference in your financial journey.

5) Not setting financial goals

I must admit, setting financial goals wasn’t always a part of my routine. I used to think, “As long as I’m not overspending and saving a bit, I’m good.” But let me tell you, that was a mistake.

Setting clear financial goals has completely changed the way I manage my money. Instead of just going with the flow, I now have specific targets to work towards. Whether it’s saving for a family vacation, building an emergency fund, or planning for retirement, having these goals keeps me focused and disciplined.

I’ve found that when I have a well-defined objective in mind, it’s much easier to resist unnecessary spending and make smarter money decisions.

So if you’re like how I used to be and haven’t set any financial goals yet, it’s high time you start. Trust me; it’s a game-changer when it comes to becoming more disciplined with money.

6) Always going for the cheapest option

It might seem like always opting for the cheapest option is a smart move when trying to save money. But surprisingly, that’s not always the case.

Sometimes, investing in a more expensive, higher-quality item can save you money in the long run. Think about it. A sturdy pair of shoes might cost more upfront than a cheaper pair, but if the cheaper pair wears out quickly and needs to be replaced several times, you could end up spending more overall.

The key is to think long-term and assess the value that a product will provide over its lifetime. So next time you’re shopping, don’t just automatically reach for the cheapest option. Consider the quality and longevity of the product as well. It’s about being smart with your money, not just stingy.

7) Not having a budget

A budget is like a roadmap for your finances. It helps you see where your money is going, how much you’re saving, and whether you’re living within your means.

Without a budget, it’s easy to lose track of your spending and end up overspending without even realizing it.

Creating a budget doesn’t have to be complicated. It can be as simple as listing your income and expenses and making sure that the former covers the latter with some leftover for savings.

If you’re not already budgeting, it’s time to start. It’s one of the most effective habits you can develop for becoming more disciplined with money.

8) Not investing in your financial education

The most important habit to ditch if you want to become more disciplined with money? Ignoring your financial education.

Understanding the basics of finances – things like interest rates, investments, and retirement planning – is crucial. It empowers you to make informed decisions about your money, which in turn leads to better financial discipline.

So take some time to read a book, take a course, or even just do some online research. Your future self will thank you.

Reflecting on financial discipline

If you’ve made it this far, hopefully, you’re beginning to see that being disciplined with money isn’t about depriving yourself or living frugally.

Instead, it’s about understanding the value of money and making conscious decisions on how to use it. It’s about recognizing the part that money plays in our lives and the lives of those around us.

If someone embodies this, they are not just financially disciplined. They are probably a great person to learn from.

Benjamin Franklin once said, “Beware of little expenses. A small leak will sink a great ship.” This quote encapsulates the essence of financial discipline – paying attention to the small stuff, because it all adds up.

It’s time to say goodbye to those old habits and hello to a more financially disciplined version of you. It won’t be easy, but it will be worth it. Reflect on that.