11 Powerful Techniques to Change Your Financial Habits


In today’s rapidly changing world, managing one’s financial habits has become an increasingly complex task. The constant barrage of advertisements, the allure of online shopping, and the pressures of keeping up with the Jones’s can make maintaining a healthy financial life challenging. However, using correct strategies and techniques, anyone can take control of their finances and work towards a more secure financial future. 

Do you want to be financially successful? If so, you need to change your financial habits. The good news is that it’s easier to start on the path to financial freedom by making simple changes.

In my blog post, I will share 11 powerful techniques to help you change your financial habits. These techniques rely on established principles of personal finance and have enabled thousands of individuals to attain their financial objectives.

24 Hour Rule

When faced with the temptation to make a purchase, it’s too easy to act on impulse. To counter this, the 24-hour Rule comes into play. Instead of purchasing immediately, wait a full day before finalizing your decision. This pause allows time for reflection, helping to determine whether the item is a genuine necessity or simply an impulse buy.

In an age of instant gratification and online shopping, the 24-hour rule can help you control impulsive spending. It provides an opportunity to consider the long-term impact of the purchase on your financial goals, making it highly relevant in today’s world.

Spontaneous purchases are usually the most significant budget breaker when trying to live within your means. So many people today have that instant gratification mentality. They will make purchases without thinking about it because they have room on the credit card or a little extra money in the bank. The term shopaholic or retail therapy can be an addiction that most people will not admit. 

I have heard countless statements on how many shoes people own or collectors’ items they have acquired, yet they need to catch up on everyday bills or credit card payments. Getting your finances in order is entirely worth it in the long run because this path offers peace of mind and can reduce stress levels compared to the 5-minute satisfaction of the spontaneous purchase.

Financial Fitness, 24 Hour Rule

Create an Emergency Fund

In today’s world, where economic stability can be precarious, having an emergency fund is more important than ever. It provides peace of mind and financial security in an uncertain environment.

An emergency fund is a separate account that is designed for you to use helping to cover unexpected expenses, and it is recommended to have at least three months’ worth of living expenses saved up in this fund, ensuring that you can cover essential costs during challenging times, such as food, rent, and transportation.

Four tips for building an emergency fund:

  • Set a goal for how much money you want to save.
  • Create a realistic budget to track your spending to see where your money goes.
  • Transfer your savings so that your income is transferred from your checking account to your monthly savings account.
  • Make small sacrifices, such as eating out less or canceling unused subscriptions, to free up more money to save.

Establishing an emergency fund takes time and effort but is worth it. Having a financial safety basket provides you with peace of mind and helps you weather any economic storms that come your way.

Pay Yourself First

With the craziness and scheduling demands of our daily lives, it’s easy to prioritize bills and expenses over savings. However, to build wealth over time, it’s crucial to flip the script and pay yourself first. Before allocating funds to bills or discretionary spending, divert a portion of your income to savings. Automating this process ensures that you consistently invest in your financial future.

That’s where the “pay yourself first” (PYF) technique comes in. The PYF technique is simple: Before you allocate money to your bills or discretionary spending, set aside some of your income for savings. Depending on your financial situation, 10%, 20%, or even more.

There are a few reasons why the PYF technique is so effective. First, it helps you to prioritize your financial future through automatic transfers from your primary spending account to your savings account. You don’t have to think about it. 

Second, the PYF technique helps you to develop good financial habits. When you prioritize saving, you are more likely to stick to it in the long run because you tell yourself that your financial future is more important than your current spending.

Third, the PYF technique can help you to reach your financial goals faster. When you save money consistently, it can add up over time, allowing you to pay off debt, save for a down payment on a house, or reach any other financial goal you have.

Here are some additional tips for making the PYF technique work for you:

  • Set a specific savings goal. What do you want to save for? A down payment on a house? Retirement? Once you know what you’re saving for, it will be easier to stay motivated.
  • Make a budget and track your spending. A budget will help you see where your money is going and ensure you are spending wisely.
  • Automate your savings. This is the best way to make sure that you are saving consistently.
  • Make small sacrifices. If you need to save more money, consider making small sacrifices, such as eating out less or canceling unused subscriptions.
Pay Yourself First

Automatic Transfers

In an era of digital banking, scheduling automatic transfers from your primary spending account to your savings account is a game-changer. Automation simplifies saving, eliminating the need for manual transfers and reducing the temptation to spend rather than save. By making saving effortless, this technique encourages consistent financial progress.

When you receive your paycheck or any other income, automatically transfer a portion (10% is a good starting point) into a savings or different investment account. Accounts that offer a return on your money will help you build wealth over time without thinking about it.

Here are some additional benefits of automating your savings:

  • It helps you avoid impulse purchases. When you manually transfer money into your savings account, you may be more likely to spend it instead.
  • It helps you stay on track with your financial goals. Knowing that you are automatically saving money for your future increases the likelihood of adhering to your budget.
  • It makes saving easier. When you don’t have to think about it, saving becomes second nature.

If you are not already automating your savings, please start today. It is one of the easiest and most effective ways to build wealth over time.

Here are some additional tips for automating your savings:

  • Choose a savings account with a high-interest rate, which will help your money grow faster.
  • Schedule recurring transfers from your checking account to your savings account through your bank’s online banking portal or by setting up a direct deposit with your employer.
  • Make sure you don’t touch your savings. Once the money is in your savings account, consider it off-limits for spending.
Credit Card, Budget

Lock Your Credit Cards

For those who struggle with impulsive spending, locking credit cards in a secure place is a proactive measure. This physical barrier makes it harder to make spontaneous purchases and forces individuals to pause and reconsider before accessing their credit lines. You can also lock your credit cards through your institution’s website. Log in to your account and lock your card to prevent future purchases until you unlock the card.

Putting your credit card in the freezer may seem like a silly idea, but having to pull your card out and un-thaw it may give you enough time to think about the purchase you are going to make

In today’s world, where online shopping and easy access to credit are the norm and easy to come by, eliminating your credit card debt and locking away credit cards in a desk or drawer can be a powerful tool for controlling spending impulses and maintaining financial discipline.

A Financial Mentor

Finding your way through the noisy world of personal finance can be daunting. Seeking guidance from someone who has achieved financial success can provide invaluable insights and support. Finding a financial mentor who can offer advice, share experiences, and hold you accountable is a step toward financial enlightenment.

In today’s interconnected world, finding a mentor is more accessible than ever. Online communities, forums, and social networks provide opportunities to connect with experienced individuals who can guide your financial journey.

Having a mentor can also give you peace of mind because if you need to withdraw money from the bank, having a financial mentor has to approve or be present, especially for spontaneous purchases or taking from your emergency fund. 

Not only will this give you time to decide whether you need to make the purchase, but having a mentor present may talk you out of an unwise purchase, or you may need to convince that person the investment is needed.

Financial Habits, Budget

Budget Your Spending

Gain invaluable insights into your spending patterns, pinpointing areas where potential adjustments can be applied. 

Remember, budgeting doesn’t mean you must give up things you enjoy. It’s a smart way to manage your money while still being able to afford the things that matter most to you. You can discover some interesting things when you keep track of where your money goes for a whole month. You might notice you’re spending more on snacks or entertainment than you realized. 

This information can help you choose where you want to spend your money and where you can save a little. Budgeting enables you to set clear goals for your money. Whether it’s saving up for a new video game, a particular trip, or even your college education, having a budget can make it easier to reach those goals. It’s like having a roadmap that shows you how to get where you want to go financially.

So, instead of thinking of budgeting as a way to limit yourself, consider it a roadmap that can assist you in managing your money with the knowledge to enjoy the things you love while working toward your big dreams.

In today’s digital age, numerous budgeting apps and tools make tracking expenses more accessible than ever. This technique remains highly relevant, empowering individuals to control their financial destiny.

Communicate With Your Creditors

Financial difficulties can happen to anyone. If you find yourself struggling to make debt payments, it’s crucial to communicate with your lenders. Many lenders and creditors are willing to work with individuals to create manageable payment plans, preventing the situation from spiraling out of control.

Did you know as long as you are making payments to an institution, you are their asset? Creditors usually are willing to talk and discuss payment options or negotiate the terms of the debt. Companies are also willing to negotiate on your behalf; however, please be careful because they can be costly with high fees or an outright scam. I would settle or negotiate on your own first, but it is vital to stay in contact with them; it could cost more in the long run.

Be patient and try not to stress because effective communication with creditors is more important than ever in today’s world, where the economic landscape can shift rapidly. It can help you move forward without additional financial hardship, prevent financial crises, and help individuals regain control of their financial well-being.

Rent or Own

Rent or Own a Home

The decision to buy a home is a significant financial commitment. In some cases, renting rather than buying may be more prudent, especially if you are uncertain about your financial stability. Renting provides flexibility and frees up funds for personal gain, such as debt reduction or retirement savings.

Owning a home does come with its expenses, and it’s essential to be aware of them. When you own a home during a downturn in the economy, you might experience a decline in your home’s value, which means you could lose some of the equity you’ve built up. Additionally, factors like inflation can drive up the cost of home ownership, including expenses for home repairs, increased interest rates (if you’re not in a fixed mortgage), and property taxes, which can all add to your financial responsibilities as a homeowner.

Let’s take the example of a water heater repair. If you own a home, you would be responsible for the potentially hefty bill, which could exceed $1000. However, if you’re renting a home, these repair costs are typically covered by your landlord, meaning you won’t have to dip into your emergency fund to cover unexpected home maintenance expenses, which can be a significant relief. Considering these factors when deciding whether to buy or rent a home is essential, as they can impact your financial stability.

Sell Items You Do Not Need

When faced with financial challenges, one effective strategy is to sell belongings no longer needed, including everything from old clothes and electronics to unused furniture. The proceeds from these sales can help bolster emergency funds, pay down debt, or invest in more essential items.

In today’s world, online marketplaces and social media platforms make selling items you no longer need more accessible than ever. This technique provides a financial boost and encourages de-cluttering and simplifying one’s life.

Reward Yourself

Achieving financial goals is a significant accomplishment, and it’s essential to celebrate these milestones. By rewarding yourself for your financial successes, you reinforce positive behaviors and stay motivated to continue working towards your goals, especially in the beginning when change is happening. Going without at first may be a punishment, but starting with small rewards, like if you stay within budget all week, is an incentive to hold yourself to your long-term goals.

Because we live in a fast-paced world where pursuing financial stability can be demanding, taking time to acknowledge you and reward your achievements is crucial for maintaining motivation and sustaining long-term change. Remember, change starts with a single step.


Changing one’s financial habits is a journey that requires time, effort, and commitment. However, the rewards are substantial: financial freedom, security, and the ability to pursue your dreams.

The techniques outlined in this blog post are written with an understanding of the evolving financial landscape. They are not only timeless but also highly relevant in today’s world. Whether using the 24-hour rule to resist impulsive spending, creating an emergency fund for uncertain times, or seeking guidance from a financial mentor, these techniques can empower individuals to take control of their financial destiny.

In today’s interconnected world, with the prevalence of digital banking, online marketplaces, and social networks, these techniques are more accessible and actionable than ever before.

 Budgeting, automation, and communication with creditors can help individuals adapt to changing economic conditions and maintain financial stability. I hope this blog post has inspired you to take action and start changing your financial habits today. Remember, there is always time to start building a better financial future for yourself.

Remember, the journey to financial transformation begins with a single step, and with the proper techniques, you can take that step confidently toward a brighter financial tomorrow.

Disclaimer: I am not a financial advisor, the views above are things that I have done and have worked for me.

Affiliate Links: Some links in the post may be affiliate links and if you chose to purchase any items from following the link I may receive a commission.

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