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Your Financial Takeover Starts Here
How to Improve Your Money Management and Build Savings – Even When It Feels Impossible
If you’ve ever felt stuck trying to save money, even though you’re doing everything “right” by working hard and earning a steady income, you’re not alone.
It can feel discouraging when you’re putting in the effort but not seeing your bank account grow.
I know the feeling firsthand. My husband and I are both professionals with stable jobs, yet we felt like no matter how much we earned, we were always playing catch-up.
There was always something; unexpected bills, medical expenses, weddings, etc. that set us back just when we thought we were getting ahead.
It wasn’t a lack of effort. It was a lack of direction. We were stuck in the same cycle so many people are in: earning, spending, and hoping to save “what’s left over.”
But what we really needed were practical, sustainable financial habits, and a better way to manage our money with intention.
Once we adopted proven financial habits, like disciplined budgeting, debt reduction strategies, and smart investing, we started making real progress toward financial freedom.
Here’s exactly how we did it — and how you can too.
The Power of Smart Budgeting and Debt Management
Here are Our New Habits that Leave Us with More Money!
1. Set Clear Financial Goals
You can’t hit a target you can’t see. I thought to myself, how do I know how much I need to set aside if I don’t have a financial goal to reach towards?
One of the strongest habits of financially successful people is setting specific, measurable financial goals.
Sit down (ideally with your partner) and write down your financial goals for the next six months, one year, five years, and even ten years.
Be as clear as possible with your goals, for example:
- Pay off $8,000 in credit card debt in 8 months
- Save $25,000 for a home down payment in 24 months
- Build a $15,000 emergency fund in 12 months
- Invest $500 per month for retirement
This is how you turn abstract dreams into actionable goals.
You can but don’t have to get majorly detailed with it. You just need to have something measurable to work towards.
Pro Tip: Setting goals gives your money direction. Without direction, your money disappears; with it, your money multiplies.
Putting it into Practic
Last year, I helped my cousin set realistic savings goals and kept her accountable throughout the year. We made it fun with regular check-ins, and while it was challenging for her at times, the structure and accountability made a real difference.
She used to spend heavily on frequent home décor shopping trips—something she loved, but it added up fast. By shifting her focus toward saving and intentional spending, she made a huge turnaround.
Now a year later, she’s just five months away from paying off her student loans, hit her savings goal the previous year, and continues to build on it.
A year ago, she had no financial plan—today, she’s taking control of her money and building real financial stability.
With the right plan, a little accountability, and consistent effort, real progress is possible.
2. Budget Like a Boss (Without Feeling Restricted)
Most people think of budgeting as a punishment, but it’s actually the key to financial freedom.
Budgets can be easy to follow. You don’t need it to be complicated with fancy pie charts and diagrams. (Admittedly, I’m of the sort that drools at the site of a colorful pie chart.) But for the sake of practicality, I now use an easiest budgeting method.
I like to call my method the Goal-Focused Budget — it’s the easiest way to manage money without feeling deprived.
Here’s how it works and it all starts with Knowing Your Numbers:
- Calculate your net (after-tax) income.
- Write down your essential expenses: housing, food, utilities, insurance, transportation.
- Allocate a portion of your income to your goals: saving, investing, or paying off debt.
- Whatever’s left can be spent guilt-free on entertainment, dining out, or travel.
Simple! You’re not restricting your life — you’re prioritizing your freedom.
Imagine not having to live paycheck to paycheck! Doesn’t that sound like a huge breath of relief you yearn to experience?
Quick Tip: Review your budget monthly. Ask, “Does this expense move me closer to my goals or further away?” Small adjustments compound into huge progress.
If you want a much easier option to help you budget, read ‘The ‘Goal Focused Budget’: The Easiest Budget Method You’ll Ever Need’.
Hundreds of dollars in savings a month equates to thousands a year that could go towards reaching one or more of your financial goals.
This habit of budgeting and awareness on spending provides good character building to practice self-control and avoid making purchases haphazardly.
3. Track Your Money
This simple habit changed everything for us.
I’ve made my share of careless spending decisions, mostly to avoid facing the reality of my habits. But the truth is, your efforts count, especially when you work hard and aren’t always paid what you deserve.
The more you track your expenses, the more it becomes second nature. Over time, you start making smarter choices in the moment – pausing before you swipe your card or hand over cash.
When you start tracking your spending, you instantly become more intentional.
Log in to your bank account weekly, review your transactions, and ask yourself:
- Where did my money go this week?
- Which purchases brought value, and which didn’t?
- How can I adjust for next week?
There are great apps like Mint, YNAB (You Need A Budget), and Empower that automate the process.
You’ll quickly start noticing unnecessary subscriptions, late fees, or impulse purchases you didn’t even remember making.
Ask yourself “why” not just “where”. Where your money ends up is important but why you choose to spend your money on a particular product or service is just as important.
We find ourselves paying for things that might not benefit us or maybe it’s a subscription we don’t use often enough to justify paying for it. Why am I spending my money on insert your spending habit here? Is it worth it?
Start this habit and you’ll likely find you can save hundreds every month.
Pro Tip: Awareness equals control. When you know exactly where your money goes, you can redirect it toward what truly matters.
4. Avoid High-Interest Debt
Credit cards can be both a tool and a trap.
If you’re paying interest, the trap has already sprung. High-interest debt is like a leech, quietly draining your financial health while you barely notice.
Let’s say you buy a $1,000 phone on a credit card with 20% APR and only make minimum payments. That phone ends up costing you over $1,700 and takes 7 years to pay off.
I get it, sometimes unpredictable emergency purchases are necessary but that is the point of having an Emergency Fund. We’ll touch on that below.
Credit cards can offer benefits but only if you use them responsibly. If you’re still building discipline around spending, it’s perfectly okay to stick with cash or debit.
Don’t worry, you’ll soon reach a point where you can enjoy credit card perks like cash back, travel rewards, and more. This is your Financial Takeover, after all.
To break free, use one of these two methods:
- Debt Avalanche: Pay off the highest-interest debt first.
- Minimize Interest, Maximize Savings
- Best for: Saving the most money over time
- You reduce how much interest you pay overall, which helps you get out of debt faster if you stay consistent.
- Debt Snowball: Pay off the smallest balances first for quick wins.
- Build Momentum with Quick Wins
- Best for: Staying motivated and seeing quick progress
- Those early “wins” give you a psychological boost and help you build positive money habits.
Remember: The key to wealth isn’t just how much you make; it’s how much you keep.
5. Build Financial Knowledge
Financial literacy is a superpower.
The more you learn about money and investing, the faster it grows.
Learning financial terms and getting comfortable with reading financial literature without fully understanding everything at first, is a key step. The more you read, the greater your understanding and familiarity becomes.
Start small:
- Read beginner finance books (like The Simple Path to Wealth).
- Watch YouTube channels or podcasts about investing and budgeting and personal finance.
- Read finance blogs (like this one!) regularly to get money management tips.
You don’t need to be an expert, just curious and consistent with expanding on your financial education. Building your confidence through financial education will translate to action!
Pro Tip: Wealthy people never stop learning. Financial education builds confidence and confidence builds wealth.
# 6. High-Yield Savings Account
On average, most brick-and-mortar banks give you a 0.01%-0.06% interest rate on your savings annually. That means if you have $5000 in a savings account, without making any additional deposits or withdrawals over a 10-year period, you would earn a whopping $5! (Insert eye-roll emoji here).
I am all about making my money work for me. I have worked for my money since I was 15 years old and for a long time did not have much to show for it.
I recommend parking the money you are not investing but maybe saving for a home, a car, or any other purchases into a high-yield savings account.
High-yield savings accounts out there are giving anywhere between 1%-5.5% interest rate annually, depending on which you choose.
That same $5000 in the example above, placed in a high-yield savings account that offers a 4% interest rate yearly, would yield $7401! Now isn’t that more of an appealing option?
Believe in Yourself, You Can Reach Your Financial Goals. Just Keep Reading!
# 7. Emergency Fund
To ensure you don’t pull emergency money out of your savings or investments and to avoid taking out loans or using your credit card to make emergency purchases, you should have an emergency fund for unpredictable costs.
We had a global pandemic just a few short years ago that proved life to be unpredictable. You’ll want an emergency fund that includes 3-6 months’ worth of expenses along with extra funds for short-term emergencies, i.e. hospital bills, car or home repair.
Emergency funds are important to establish to allow for your other funds and investments to grow without the risk of needing to withdraw from them.
# 8. Sinking Funds
I recently implemented this habit into our household and I am so glad I did. This is a fund for the expenses that don’t happen as frequently as your monthly expenses but still need to be accounted for, i.e. Vacations, Holidays, Birthdays, etc.
In the past, I would always get anxious around the end of the summer as all of my siblings’ birthdays were just weeks apart between the 3 of them. I was never prepared financially and would not get to enjoy the anticipation of celebrating as I was overwhelmed with stress.
It was similar around the holidays, from gift-giving costs and the increase in our grocery bill as we would indulge in specific holiday meals and treats. I always felt like we were spending more than we had available.
I came to realize I was going in “blind” when shopping because not having a set amount allocated for the holidays left me susceptible to extra spending.
To prepare for this, gauge how much you typically spend on these specific events and divide that by 12 months. Take that monthly amount and stow it away where you feel comfortable. Accounting for these costs ahead of time will leave you feeling like a champion and anxiety-free ready to enjoy all the celebrations.
# 9. Pay Yourself First
This is the biggest habit to set for reaching your goals.
Simply, after receiving your paycheck you immediately allocate part of your income to your savings and investment goals FIRST. The amount you allocate is based on the goals you previously listed and the dollar amount it will take monthly to get there in a specific timeframe.
Then the rest goes towards your expenses whether it be bills or other costs. That’s right, here you are prioritizing yourself. You are telling yourself that you and your future self matter!
Your financial health is a critical aspect of your life. Maintaining poor financial habits can affect you mentally, emotionally and physically. Working towards reaching a better financial state will translate positively into other areas of life.
The real key here is to consider making lifestyle adjustments to fulfill your goals. When you start allocating money to your goals as a priority, you will find yourself dedicated to finding more ways to save money on your expenses to get on the fast track to financial independence.
# 10. Be Cautious of Lifestyle Inflation
I’m a big believer in enjoying the “now” and not being super restrictive with yourself. However, there should be a realistic approach to this. You have to be practical with the current situation you are in and work with what you have. There are many alternatives to having fun that are less costly.
Lifestyle inflation occurs when you start to implement a certain lifestyle that includes pricey things or habits, that if you were honest with yourself you realize you don’t actually need or able to afford without going into debt. Those pricey things then eat away at your future financial independence journey.
I am not just talking about savings now for retirement many years later. You can make better choices now for the short term future as well.
As I said, enjoy yourself in this life. But don’t get carried away because things truly add up QUICKLY!
Budget and plan for the things you really want. Even before you do that, really think about how important that “thing” is for you before you spend your hard-earned money on it. Will this be an expense that give you short term gratification?
A lot of the time when someone’s income increases, rather than make use of the extra money to reach their financial goals sooner, they just buy more stuff, a fancier car, splurge on expensive dinners or designer clothing and accessories.
Guess what that does, it puts you right back to where you were before your income increased. That extra money is going towards items that might give you momentary excitement but leave you with bigger bills.
To be able to pay yourself first, you need to look at your expenses and get rid of the unnecessary frills that do not add value and only slow down your savings and investment growth.
Restricting yourself (especially temporarily) is not a bad thing when it is necessary, it helps build character and discipline.
# 11. Review Your Finances
Routinely checking your finances will keep you on track with your goals and maybe even get you there quicker when you make certain tweaks as necessary.
My husband and I take one day out of the month to keep each other up to speed and review our finances. Here we uncover whether we are staying on track and if changes need to be made in our approach.
Here is what we analyze:
- We review and reevaluate our Goals
- Double-check our expenses and even check to see if we can further reduce any costs.
- Review our budget and ensure it is in line with our goals
- Discuss any new and upcoming or unaccounted-for payments or events that need to be allocated into our budget
- We check the status of all our funds: Investments, Retirement, Savings, Emergency Fund, etc.
- Analyze our investments to see if any modifications need to be made.
- Lastly, we share any ideas i.e. passive income, to reach financial independence sooner
Here you have it, 11 Habits of People Who Are Never Broke
Stick to these 11 Habits and you will be in a much more relaxed state of mind financially.
I will help you learn the tools you need to make better financial decisions, improve your money-management skills, and get you on the path to retiring early and enjoying financial independence.
I care to make this a fun journey rather than a restrictive one but that takes being mindful, practical, and intentional with your financial habits.
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Until next time,
The Financial Takeover
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