15 Easy Hacks to Improve Your Relationship with Money

Last Updated on March 25, 2025 by Katie

Studies show that our relationship with money is formed by the age of seven, including money habits and behaviours. If you feel like you’ve developed some bad habits, you’re not alone. I’ve had my fair share of bad money experiences in my early 20s!

The good news is that it’s never too late to develop better habits, so you can have a healthier financial future.

Today, we’re going to dive deep into the best hacks to improve your relationship with money.

By making these small changes, you can develop and better money mindset, save more, spend less on unnecessary items and secure your financial future.

Will it be easy?

Well, that depends on how bad and ingrained your bad money habits are.

But, it is possible to improve your money management skills, as I’ve done it myself!

Let’s dive in!

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Easy Hacks to Improve Your Relationship with Money

Are you ready to take control of your finances?

Read on to learn about the top hacks to improve your relationship with money.

1: Shift Your Money Mindset

Shifting your money mindset involves changing the way you think about money.

This can affect your financial decisions and overall attitude towards spending and saving and a negative mindset about money can lead to stress and poor financial habits.

Some people struggle with a negative money mindset due to past experiences or ingrained beliefs about money, so, recognizing and addressing these patterns is essential.

Here are a few tips:

• Identify your limiting beliefs about money
• Replace negative thoughts with positive affirmations
• Educate yourself about financial management
• Practice gratitude for what you have
• Surround yourself with financially responsible influences

Pro Tip: Keep a journal of financial successes, no matter how small, to reinforce positive thinking and track progress.

Further reading: create a vision board for successful money habits and positive money affirmations.

2: Track Your Spending Habits

Tracking your spending habits is one of the best hacks to improve your relationship with money.

It helps you identify where your money goes and highlights areas where you can save.

Many people find this challenging because it requires consistent effort and honesty about spending patterns.

Follow these steps:

• Start by recording every purchase, no matter how small
• Use budgeting apps or a simple notebook to track expenses daily
• Review your spending weekly to spot patterns and areas to cut back
• Set realistic spending limits and stick to them
• Regularly update your budget to reflect any changes in income or expenses

Pro Tip: Automate data collection by linking your bank accounts to a financial app to simplify the tracking process.

3: Set Clear Financial Goals

Establishing clear financial goals can guide you toward better financial decisions and habits.

Clear goals help you prioritize spending, saving, and investing efforts and many people may struggle with this due to a lack of direction or uncertainty about where to start.

Here are a few steps to get you started:

• Identify what is most important to you financially
• Break down long-term goals into smaller, manageable steps
• Establish specific, measurable, achievable, relevant, and time-bound (SMART) objectives

Pro Tip: Regularly review and adjust your goals to keep them aligned with any changes in your financial situation or priorities.

4: Build a Budget Plan

Building a budget is essential for improving your relationship with money.

It helps you control your spending, save effectively, and allocate funds for various needs, although, many people find budgeting challenging due to irregular income or unexpected expenses.

To create a budget plan, start by tracking your expenses for a month and identify areas where you can cut back and allocate funds for savings.

• List your income sources and amounts
• Categorize and tally your expenses
• Set spending limits for each category
• Review and adjust monthly to reflect changes

Pro Tip: Use budget apps to automate tracking and receive spending alerts.

Further reading: check out these budgeting tips for beginners.

5: Practice Mindful Spending

Mindful spending involves being conscious of how you allocate your funds, ensuring that each financial decision aligns with your priorities.

This approach helps you avoid impulse purchases and fosters a healthier relationship with money.

Sometimes, people struggle with mindful spending due to emotional triggers or ingrained habits and recognizing these challenges is the first step toward improvement.

• Track your spending habits to identify where your money goes
• Check out these things to stop buying to save thousands
• Pause and reflect before making a purchase to ensure it meets your needs
• Set a budget to guide your spending decisions
• Use cash instead of cards to limit impulse buys
• Explore your emotional triggers that lead to unnecessary spending

Pro Tip: Create a “wish list” for purchases. If you’re still considering items after a month, they might be worth it.

6: Establish an Emergency Fund

Having an emergency fund is a critical financial safety net and it will help you handle unexpected expenses such as medical bills or car repairs, without derailing your financial stability.

Many people struggle to set aside money consistently due to tight budgets or bad spending habits.

Follow these steps to get started:

• Identify areas where you can save such as groceries
• Set a specific savings goal based on your monthly expenses
• Create a dedicated savings account for your emergency fund
• Automate transfers to your emergency fund after each paycheck
• Save any windfalls like tax refunds or bonuses

Pro Tip: Start with a small, achievable goal, such as $500, then build up to three to six months’ worth of expenses.

7: Embrace Financial Education

Understanding finances is crucial for managing your money effectively.

Financial education involves learning about budgeting, investing, and smart financial planning and it empowers you to navigate complex financial decisions with confidence.

Ideas might include watching YouTube financial channels, reading finance blogs or taking the time to read books on managing money.

Taking steps to educate yourself helps mitigate any challenges and helps you to have a healthier financial future.

Follow these steps:

• Identify reputable sources on personal finance
• Set aside time each week to focus on financial learning
• Take online courses or attend workshops

Pro Tip: Join financial education groups or forums to connect with others and learn collaboratively.

8: Automate Savings Contributions

Automating your savings contributions is one of the top hacks to improve your relationship with money.

By setting up automatic transfers from your checking account to a savings account, you ensure consistent savings without the temptation to spend that money.

Many find it hard to prioritize savings amidst daily expenses and automatic contributions remove this challenge by making saving a seamless process.

Here are a few tips:

• Set up a direct deposit split through your employer so part of your paycheck goes directly into savings
• Use online banking to schedule regular transfers from your checking to your savings account
• Consider using apps that round up your purchases and transfer the difference into your savings

Pro Tip: Increase your automatic savings amount periodically, such as when you receive a raise, to boost your savings over time.

9: Invest in Your Future

Thinking about the future can sometimes be overwhelming, but investing in it is essential.

Building a secure financial future involves making prudent choices today and is critical to ensuring long-term stability and growth.

Some people may hesitate due to uncertainty or lack of knowledge, but, overcoming this involves learning and taking manageable steps forward.

Here are a few steps to get started investing:

• Start by educating yourself about different investment options like stocks, bonds, and mutual funds
• Set clear, realistic financial goals that align with your future plans
• Consider consulting with a financial advisor to help you make informed decisions
• Regularly contribute to retirement accounts, such as an IRA or 401(k)
• Reassess and adjust your investment strategy as your financial situation evolves

Pro Tip: Start small. Even modest investments can grow significantly over time due to compound interest.

10: Forgive Past Financial Mistakes

Letting go of past financial errors is crucial for getting a healthier relationship with money.

Mistakes are natural, but holding onto them can hinder progress. Acknowledging them allows you to move forward.

This can be challenging as financial blunders often come with guilt and stress, but if you want to move forward, you need to learn and move on.

Follow these steps:

• Recognize the mistake and its impact
• Reflect on what you have learned
• Develop strategies to prevent repeating it
• Practice self-compassion and kindness

Pro Tip: Keep a journal to track your financial growth and document lessons learned.

11: Stop Comparing Yourself to Others

Comparing your financial situation to others can harm your self-esteem and decision-making.

It often leads to unnecessary stress and distracts you from focusing on your own goals.

However, some people may struggle with this due to social pressure and exposure to others’ successes on social media.

But, know that we are all different and have come from different backgrounds and financial situations, so no two people’s journey will be the same.

Follow these steps:

• Recognize that you are a unique individual
• Focus on your own financial journey and how YOU can improve
• Set personal financial goals that align with your circumstances and values
• Limit time spent on social media where comparisons can arise
• Celebrate your financial milestones, no matter how small

Pro Tip: Reframe your thoughts by considering what you can learn from others’ successes instead of using them as a benchmark for your own progress.

12: Tackle Debt Strategically

To improve your relationship with money, it’s crucial to address debt thoughtfully.

High-interest debt can weigh heavily on your financial well-being, so, set out a plan to reduce your debt.

However, some find it challenging to stay focused and motivated, especially when juggling multiple financial obligations.

But, focus on paying off one debt at a time and these small wins will keep you motivated.

Follow these steps:

• List all debts with interest rates and balances
• Prioritize paying off high-interest debts first
• Consider the snowball or avalanche method to manage your payments effectively
• Find opportunities to cut unnecessary expenses to free up cash for debt repayment

Pro Tip: Schedule regular check-ins to track progress and adjust your strategy as needed.

13: Start Appreciating What You Have

Recognizing the value in what you already possess can transform your financial outlook.

Gratitude shifts focus from what you lack to what you have, helping to reduce unnecessary spending and increasing contentment.

Remember that – even if your financial situation isn’t perfect today, you wake up, you have a healthy body and you have food in the cupboards!

These are things that we should all be thankful for!

Here are a few extra tips:

• Reflect daily on things you are grateful for
• Avoid comparison by focusing on personal goals
• Engage in activities that bring joy without spending

Pro Tip: Keep a gratitude journal to regularly note what you appreciate, reinforcing positive financial habits.

14: Build Multiple Income Streams

Creating various sources of income can bolster your income, so you can enjoy a better financial situation.

By creating multiple income streams, you are reducing reliance on a single paycheck.

Although this path can seem daunting, it rewards those who embrace creativity and are willing to explore new opportunities.

Here are a few steps to get started:

Pro Tip: Start small and gradually expand your efforts as you gain more experience and confidence.

Further reading: 19 one day a week jobs to boost your income effortlessly.

15: Celebrate Small Wins and Achievements

Celebrating small wins can significantly improve your relationship with money.

By acknowledging progress, you reinforce positive habits and this strategy can prevent financial stress and increase motivation.

Just remember to not totally blow your budget when you celebrate! There are plenty of low-cost ways to treat yourself that won’t break the bank.

Here are a few tips:

• Recognize your accomplishments, no matter how minor
• Take a moment to reflect on what you achieved
• Feel proud of your progress and share it with others.
• Choose a celebration method that nurtures your interests, such as a small treat or a favourite activity

Pro Tip: Create a journal to track these successes, offering a visual progression of your financial journey.

Final Thoughts on Hacks to Improve Your Relationship with Money

Those are the top hacks to improve your relationship with money.

Start slowly and build one at a time into your routine. Once you conquer the first hack, move on to the next and congratulate yourself with each win.

With time, you’ll rid yourself of debt, have a good chunk of savings in your bank account and will be well on your way to a healthy financial future!

Do you struggle to save money?

Check out how to save $1,000 in a month, even if you’re broke.

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15 Easy Hacks to Improve Your Relationship with Money (and Become Financially Free).

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15 Easy Hacks to Improve Your Relationship with Money (and Become Financially Free).

Author

Katie Lamb

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Remote Work Rebels

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