Money habits: The good and the not-so good

Money touches every part of our lives. But for many of us, it’s easier to avoid looking closely at our spending habits or financial health. Maybe you’re hoping what you’re doing is enough to get by. Maybe the idea of examining your finances feels overwhelming. 

But here’s the truth: Understanding your relationship with money is one of the most powerful things you can do to reach your financial goals. 

Our money habits don’t just show up out of nowhere. They’re shaped by how we were raised, what we believe about success and security, and how we respond to stress. No matter where you’re starting from, there are proven strategies that can help you build a healthier relationship with money.  

The habits that help 

These are the kinds of habits that can make money feel less stressful and more like you’re in control: 

1. Creating a budget
   A budget is more than numbers, it’s a way to see your priorities in action. Tracking what comes in and goes out can give you a clear picture of your financial health, and help you plan for what’s next.
2. Paying yourself first
   Treat your savings like any other bill. Even a small automatic transfer to a savings account each month adds up over time. Future you will thank you.
3. Building an emergency fund
   Life happens. Having money set aside for unexpected expenses means you’re less likely to reach for credit when something goes wrong. Once your emergency fund is in place, consider growing your savings through a TFSA or RRSP.
4. Paying bills on time
   Missing payments can lead to late fees and hurt your credit. Automating bills or setting reminders can make this habit easier to stick with.
5. Investing early (and often)
   Letting your money grow through investing, even in small amounts, can help build long-term wealth. Look into options like stocks, mutual funds, GICs, or speak with a financial advisor to get started.
6. Using credit wisely
   Credit isn’t bad it just needs boundaries. Keep balances low, pay on time, and try to avoid carrying high-interest debt.
7. Learning as you go
   Personal finance isn’t always taught, but it’s never too late to learn. Read books, listen to podcasts, or take courses on personal finance. Check your credit score and find out how the choices you’re making could be affecting it. 

The habits that might be holding you back 

You’re not alone if you see yourself in any of these. They’re more common than you think, but awareness is the first step toward change. 

1. Living paycheque to paycheque
   If your money runs out before the month does, it’s not a personal failure, it’s a sign that something needs to shift. This cycle can lead to relying on credit or payday loans. 
2. Relying on credit cards for everyday spending
   Using credit for needs (or wants) you can’t afford to pay off right away can quickly turn into expensive debt.
3. Avoiding or ignoring debt
   Making only minimum payments (or none at all) can cause balances to balloon. Facing your debt head-on is the only way to start reducing it.
4. Impulse spending
   Unplanned purchases can sneak up on you, especially when you’re stressed. Over time, they chip away at your savings and make it harder to reach your goals.
5. Overusing buy now pay later options
   These can feel like an easy solution, but they can also lead to overspending and debt if you’re not careful. If you can’t afford it today, it may not be a wise choice to have to pay for it later.
6. Not saving for retirement
   Retirement may feel far away, but time is your biggest asset. Even small contributions now can grow significantly in the future.
7. Using debt to pay off debt
   Taking out loans to pay off other loans, especially high-interest options like payday lenders, can trap you in a cycle that’s hard to break.

It’s never too late to change 

If some of these habits sound familiar, don’t beat yourself up. Shame isn’t a useful tool to inspire change. Instead look to empower yourself through compassion and knowledge. Celebrate the small wins as they can help build momentum for long term change. 

Whether you’re starting fresh or just making a few tweaks, the goal is the same: to feel more confident, less stressed, and more in control of your money. And that’s a habit worth building.