Five minutes a day, or even once a week, can help you keep on top of your personal finances. Sometimes even a one-off five minute task, like installing and setting up the right app, can have a long-term impact. Consider these five minute habits if you’re trying to keep your personal finances on track.
Track Your Cashflow
We most commonly use this phrase when talking about business finances, but your personal cashflow matters too. In this context, cashflow is simply money in and money out. Spending a few minutes each day or week to see how much you spent (and on what) versus what came in, can make you feel very connected to the flow of money in your life and encourage more mindful spending.
Install a Money App
No you don’t want to clog up your device with loads of apps, but spending five minutes every now and then to download and set up one that will work for you long-term is five minutes well spent. Finance apps that might help you include:
- Mint – Helps you track your spending and monitor your credit score
- Every Dollar – A budgeting tool with built in financial advice to help make improvements
- Acorns – Automatically saves spare change into an investment account based on your income and goals
- Honey – Runs coupon codes to offer savings every time you shop or book online
Personally I love the Honey app and everyone who does most (or even some) of their shopping or booking online should consider it. Every time you check out online, whether you’re buying physical goods, concert tickets, or anything else, it will check for online coupon codes to make sure you’re getting the best possible deals. If there’s no deal to be had, you sometimes get a cash back offer instead. So far this morning, I’ve saved on airport parking for an upcoming trip, an online grocery order and an overnight hotel stay.
Run a Quick Comparison Before Making Big Purchases
Spending out on a vacation or renewing your auto insurance? You can almost certainly get a better deal than the first one you come across, but who wants to search through endless offers online? Use a comparison site to check there aren’t better offers out there. There are specialist comparison sites such as Kayak for travel or Quote Wizard for auto insurance.
Educate Yourself
It only takes five minutes to read an article on personal finance, or a few pages of a book. Make it an audio book (or podcast) and you can combine it with doing something else like driving, working out or daily chores.
You’ll want to read (or listen to) a book about money that won’t actually bore you to tears. Consider The Richest Man in Babylon by George Samuel Clason, Your Money Or Your Life by Vicki Robin and Joe Dominguez, or The Millionaire Next Door by Thomas J Stanley and William D Danko. They’re all easy to dip in and out of even if you only have five minutes at a time.
Automate Your Savings
Automation can be a good or bad thing when it comes to finances. I’m one of those crazy people who actually likes to pay my bills and move my money around myself so I feel more connected to the process. But there are exceptions. Setting up an automated transfer from your checking to your savings account will save you time and help you put money aside each month as a built-in part of your budgeting process.
Delay Purchases
So much of our spending is highly impulsive, often unnecessary, and ultimately a source of stress (more stuff + less money = more stress, a lot of the time). Many people like to delay all significant purchases by a day or even a week, to see if they still feel the same urge to spend after a ‘cooling off’ period. Even taking five minutes to consider an impulsive purchase can make a difference, sometimes making you realize the purchase won’t enhance your life at all, and could make it worse.
Look Over Your Goals
Whether you have specific financial goals, or simply general life goals that require money to take action on (and let’s face it – most do), create a visual that represents them. I’m a words person so a simple list works for me, but if you’re a vision board type of person, go for it. Even a photo of that dream destination you’re aiming to visit can work.
Just make sure to look over your list, or other visual incentive, for five minutes now and then, so the motivation to achieve those goals stays top of mind. It will be there in your subconscious when you’re deciding whether to make that impulse purchase or maybe go the extra mile on an income generating project.
Habits like these won’t change your life overnight, but over a year or decade, they can definitely make an impact.
Frequently Asked Questions
What are some simple daily habits that improve your finances?
Small, repeatable habits tend to work better than occasional big efforts. Examples include checking what came in and went out of your accounts each day or week, pausing before non-essential purchases, comparing prices before big buys and spending a few minutes reading or listening to something about money. Over months and years, these short routines can add up to better spending awareness and steadier savings.
How do I stop impulse buying?
One of the simplest tactics is a cooling-off period: wait a day or a week before buying anything that isn’t essential, and only buy it if you still want it after that time. Unsubscribing from retail emails, removing saved payment details from shopping sites and keeping a short list of goals you are saving for can also reduce the urge to spend on the spot.
Is it a good idea to automate your savings?
For many people, yes. Setting up an automatic transfer from checking to savings right after payday means you save first and spend what is left, rather than relying on willpower at the end of the month. Choose an amount your budget can comfortably handle so the transfer doesn’t push your checking account into overdraft, and review it whenever your income or expenses change.
How often should I review my financial goals?
There is no fixed rule, but a quick look every week or month keeps goals front of mind, and a deeper review once or twice a year lets you adjust for changes in income, family or priorities. Writing goals down, or keeping a visual reminder such as a photo of a place you are saving to visit, can make them easier to stick to. A financial advisor can help if your goals involve longer-term decisions such as retirement or investing.
About the author
Contributing Writer, Wealthtender
Karen Banes is a freelance writer specializing in entrepreneurship, parenting and lifestyle. She writes articles, website content, ebooks and the occasional award winning short story. Her work has appeared in a range of publications both online and off, including The Washington Post, Life Info Magazine, Transitions Abroad, Brave New Traveler, Natural Parenting Group, and Copia Magazine.
Karen provides copy editing and proofreading services, as well as content creation services, at her website KarenBanes.com.