Habits to ditch to be financially savvier in 2025

Habits to ditch to be financially savvier in 2025

If you want to be better at managing your money this year, then you need to ditch these habits immediately. 

A woman holding shopping bags and sitting on a couch
A woman holding shopping bags and sitting on a couch/iStock/dvulikaia

One of the biggest challenges people face year after year is becoming more financially disciplined.

While it's a goal many strive for, old habits often derail progress, causing people to fall off the wagon too soon. Despite the uncertain times, many people continue to spend more than they should on things they could easily do without.

If you’re determined to become a savvy saver this year, here are some top pieces of advice to help you stay on track.

1. Say goodbye to impulsive buying 

To master financial discipline, you need to ditch impulsive purchases. Buying things that aren’t a priority can quickly drain your funds and fuel poor spending habits.

While bargains, sales, and discounts may seem tempting, using your savings to buy items you might need down the line isn’t the best choice. Impulse shopping prevents you from building your savings.

If you find yourself easily swayed by impulse buys, consider placing your savings in a fixed deposit account to make it harder to access and spend unnecessarily.

2. Living beyond your means

Creating a lifestyle within your financial means is key to financial discipline. Following trends and living beyond your means can quickly lead to an empty bank account and a lonely life. 

"Living within your means doesn’t mean you can’t enjoy life. It’s about making informed decisions and prioritising what’s important to you." (Geediting)

3. Learn to budget

Budgeting is an often overlooked habit that needs to be prioritised if you want to lead a more financially savvy lifestyle. 

By tracking your expenses against your income, you’ll gain a clear picture of your monthly finances. This insight helps you identify where your money is going, so you can prioritise spending and avoid falling into debt.

4. Stay away from credit

Avoid relying on credit cards and loans. While they might seem like a quick fix when facing financial troubles, credit can quickly trap you in a cycle of debt. 

The combination of monthly instalments and interest charges can quickly become overwhelming. If you must use credit, ensure you do so responsibly and with a clear plan to repay it.

5. Start saving immediately

Many people put off saving until they’re earning more, but that’s not the ideal approach. Regardless of your income, you should start saving a portion of your earnings as early as possible. 

"Procrastination can be a significant barrier to financial discipline. It’s a habit that stems from the belief that there will always be more time in the future. However, time is one of the most valuable assets for saving and investing.

"Compound interest – the process by which interest is earned on both the initial amount saved and the interest already accrued – works best over long periods. The earlier you start, the more money you can accumulate." (Geediting)

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