Trying to save money? Practice the habits of successful people for financial health 💸

Have you ever promised yourself you'd save more money...but ended the month wondering where it all went?

You're not alone. Taking control of your personal finances is no easy task. But just because it isn't easy, doesn't mean it's not possible.

It's all about changing your habits.

Learn how the habits of successful people can bring positive change to your finances.

A book I recommend to everyone looking to change any habit is Atomic Habits by James Clear. In the book, Clear writes about the various habits of highly successful people and creating habits that are:

• Identity-based — Focus on the person you strive to be.

• Easy — Keep habits simple so that they stick.

• Stacking — Link new habits to existing ones.

• Satisfying — Reinforce positive behavior.

• Overcoming — Plan for recovery if a habit slips.

Successful people, such as Michael Phelps (Olympic swimmer), Jerry Seinfeld (comedian), and Bill Walsh (an NFL coach), credit their success to these habits.

Perhaps you think you're "bad with money". Not anymore! It's time to shift your mindset.

Behavior follows your identity. If you believe you're bad with money, you're more likely to engage in habits that create that identity. Instead, try on one of these identities:

"I am a person who manages money wisely."

"I am a person who is in control of my finances."

"I am a person who saves their money."

"I am a person who is good with money."

Build an Identity Statement

Now that you've taken on your new identity, build an identity statement. Tie the habit you want to achieve to your new identity. For example:

"I save 10% of everything I earn because I am a person who saves their money."

Embody your new identity and take actions that support it.

Building new habits can be overwhelming, so keep it easy! When you first start, a simple habit is more likely to stick than a complicated one. Small wins help prevent you from becoming overwhelmed.

Keep the habit to 2 minutes or less. Try some of these:

• Move $1 - $5 into your savings account every day

• Look at your calendar for upcoming bills

• Review your credit card statement

When it comes to new habits, you don't always have to start from scratch. Habit stacking means linking new habits to your existing routine.

Use the formula: "After I [current habit], I will [money habit]."

For example:

• "After I pour my coffee, I'll check my daily expenses."

• "After I finish dinner, I'll open my budget tracker and log expenses for the day."

Satisfaction reinforces behavior. Track your progress visually and reward your small wins. For example, every time you resist the urge to buy a coffee, shade in a square on a chart. Once you've shaded in all the squares, reward yourself with a little treat.

Try using a savings tracker or budgeting app such as Rocket Money or NerdWallet. You could even make your own tracker on a piece of paper or in a journal.

Check out the TikTok below for a fun way to track savings in a bullet journal. The journal creator uses a chart that's shaped like a jar. Every time they save $100, they fill in a portion of the jar with a highlighter until the jar is full.

Everyone slips up and makes mistakes. The key is to recover quickly. Missing once is a mistake. Missing twice could become a new habit.

Anticipate that you'll make mistakes. No one is perfect! Try creating an "if-then" recovery plan in preparation. For example, "If I overspend this week, then I'll cut one expense next week."

Ready to manage your finances using the habits of successful people?