These six money micro-habits can make the difference between becoming financially independent or struggling to stay ahead. Self-made millionaires are doing all six, with smiles on their faces and pep in their steps, and they started these habits when they had no money at all.
If you want to finish 2025 on a high note, adopt these six money micro-habits right away.
Always be saving for the shorter-term
Ask yourself: “If I needed money for an emergency, a repair or home improvement, do I have it?”
Having savings is the key to staying out of debt. When something comes up, and it always does, savings lets you pay for it without borrowing money. It’s why many financial educators prescribe starting up a savings habit at the same time as paying off expensive balances. Learning to save helps break overspending habits, permanently.
In action, this is a simple weekly or biweekly transfer of money into a high-interest savings account you don’t have access to via debit tap. Even saving $25 a week starts to build a kitty of money for the what-ifs and must-haves. As your financial flexibility grows, or you come into more money say through a holiday bonus or gift, top up this account. Over time, you’ll build enough to cover a couple of months’ worth of expenses, and any upcoming big-ticket purchases.
Consistent investing contributions
Ask yourself: “Will my future self have enough money?”
One of the classic personal finance books, “Start Late, Finish Rich,” by David Bach, drives home the point that regular investment contributions over one’s working career, invested into quality investments, is precisely how to ensure you’ll have enough money for retirement. You can’t rely on inheritance, winning the lottery or coming into some magical windfall of money in your late 60s. If you’re a bit late starting, that’s OK. But don’t ruminate over how late you are, get going!
I recommend weekly or biweekly investment contributions into an age-appropriate portfolio consisting of lower-cost diversified investments as the starting point. ETFs are very common nowadays, and so are robo-adviser platforms to simplify the process. Custom portfolios can also work, and a reputable adviser might be the right way to go.
The key is to land on a sum of money that can be invested regularly, and into tax-advantaged investment accounts like RRSPs and TFSAs. If a pension plan is available through work and has a matching component, participate in that too. Stay invested for the long run and keep contributing even during leaner financial times.
Many self-made millionaires increase their contributions by a smidge every six to 12 months, until they’re investing at least 10 per cent of their gross income, meaning they’re living off of the remaining money. If you’re looking for motivation, run some scenarios through a compound-interest calculator like the one at GetSmarterAboutMoney.
Taking the right investment risk at the right age
Ask yourself: “Am I comfortable with the investments I own, and do I understand them?”
When you’re young you have time on your side to recover from potential losses your investments may take as a result of a high-growth strategy. When you’re near retirement, you just can’t take that risk and need to be more conservative and income focused. So grow your money according to your age and risk comfort level. This means taking on the right level of investment risk at the right time, and lowering it as you age.
I use a five-point risk scale (five is high risk). Shift down a point every decade and you will protect yourself from unnecessary market risk. In your 20s a five (aggressive growth); 30s a four (growth); 40s a three (balanced); 50s a two (moderate), 60s a one (conservative). You’ll find most managed investments, and portfolio managers, have similar names for their portfolios, and similar scoring systems, and will prompt you to lower risk as you age.
Saying no to the add-ons and extras
Ask yourself: “Do I really need this?”
Saying no to add-ons and extras is a bit more preparation and work. But if bringing your own towel and mat to the gym saves you $6 each time you workout, that’s hundreds of dollars over the course of a year if you’re going two to three times a week. The same goes when it comes to keeping orders to essentials-only and avoiding all the add-ons at the checkout. Another “free” blanket you don’t need won’t feel that good if your actual order is $100 over budget. Packing your own lunch takes some planning but can save you thousands in a year and keep your nutrition goals on track. Making a list prior to shopping can help keep you on track.
Getting the best value for money
Ask yourself: “Am I maximizing my money with this purchase?”
It requires a bit of research, but price comparing and deal hunting is known to shave 20 to 30 per cent off grocery bills, school supplies, clothes and even bigger ticket items like cars and computers. Consider a second-hand purchase to save even greater sums and reduce consumer waste. Millionaires are aware of seasonal pricing and mega sales, and time their purchases to maximize their savings and/or get the greatest perks.
Budgeting
Ask yourself: “Do I know exactly what’s coming in and going out of my bank account and credit card?”
If you learn to spend within your means, you’ll see the balance in your bank account grow. Millionaires use budgets to help ensure their outflows are lower than their inflows. They’re regularly reviewing their expenses, reducing or eliminating what’s not necessary, and keeping a close eye on their income. If there’s an opportunity to increase what their earning, especially if they find ways to work smarter or more efficiently, they’re on it.
The mistake I see often in my community is thinking that a budget will solve bad habits. It won’t. No budget will make you stop impulse shopping. Only a deep dive into why that keeps happening, emotionally, will reveal the root cause, which can then be addressed. A budget will however, reveal clues into the habits that are holding you back. So pick a budgeting system that you can stick to, and let that process of tracking inflows and outflows provide helpful insights that you can take action on.
These six habits take less than 15 minutes a week. Consistency is everything. If you stick with these habits, you’ll see results. If not, you won’t.
