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The Power of Micro-Habits for Financial Success

Posted on by kbhennes

Achieving financial success doesn’t require large changes. Sometimes, it’s the small consistent habits that make the larger impacts down the road. These are what we considered in the financial industry to be micro-habits. These tiny, everyday actions can have massive financial impacts over time. Whether it’s tracking your spending, automating savings, or cutting back on small expenses, these habits can build up over time to create a solid foundation for improving financial health. By incorporating micro-habits into your daily life, you can set yourself on a path towards a healthier financial life.

Track your spending daily.
• Micro habit: Spend 5 or less minutes every day reviewing your expenses.
• Why it works: Tracking your spending regularly helps you stay aware of where your money is going. It also helps prevent overspending. Ways you can go about tracking your daily spending include manually checking your credit card and debit card accounts or downloading apps like NerdWallet or PocketGuard.
• Benefit: By regularly staying on top of your spending, it prevents you from overspending or being unaware of your expenses. It also creates a level of safety in knowing if your information has been stolen by immediately being able to recognize a purchase that wasn’t from you.

Set aside income for savings.
• Micro habit: Every time you get paid, set aside a percentage of your income for savings.
• Why it works: Small amounts of savings add up over time. Doing this consistently overtime helps build up an emergency fund and ensures that you’re building your wealth passively.
• Benefit: By regularly contributing small amounts over time this allows you to create a nest egg of funds in the emergency that you need a chunk of cash. It also creates a mindset of saving that can translate further down the road for when it comes to retirement and other savings goals.

Pay off credit cards in full monthly.
• Micro habit: Each month pay off your credit card in full before the due date.
• Why it works: Paying it off in full each month allows you to avoid paying on hefty interest rates, fees, and debt payments.
• Benefit: By paying your credit card off in full every month, you avoid spiraling into credit card debt, paying extra fees, and it helps build your credit score. Think of this as three birds, one stone kind of benefit when paying your credit card off in full.

In summary, micro-habits are small actions that, when practiced regularly, can lead to significant improvements in financial health. By focusing on simple behaviors like tracking spending, saving regularly, and paying off credit cards in full, you can start building better financial habits. These small adjustments to your daily life can have large impacts on your financial health over time. With patience and consistency, micro habits can lay the groundwork for lasting financial success. If you have any further questions or would like to learn more about this topic, reach out to us at Powercat Financial Here to schedule an appointment.

Drew Cason
Peer Counselor II
Powercat Financial
www.k-state.edu/powercatfinancial

How to ‘Treat Yourself’ on a Budget

Posted on by ekoochel

College is stressful, and managing money can be hard. Trying to manage your money during stressful times can be especially difficult. You may find that when life gets tough you just want to ‘treat yourself’, but you don’t want to fork over your hard earned money just for a little enjoyment.

Here are 4 tips to treating yourself without breaking the bank.

  • Set aside a certain amount that you can spend each month on yourself.
    • Each person has a different budget, and that budget will determine how much you can actually afford to spend on yourself. This could also limit how many times you can afford to engage in some extra spending. For some, spending $15 every week on themselves fits into their budget. Another person may only be able to devote $10 each month to pampering themselves. Whatever your budget is, stick to it. It is easy to spend too much if you do not have a plan before spending.
  • Plan ahead.
    • There are times when we all are just looking forward to the end of the week. Maybe you have three tests and two papers to write. Maybe you have to work extra hours, even though your campus organization is holding their biggest event of the year. No matter what your circumstances, there are times when you know you will just want to celebrate the week being over. If you see you have a crazy week ahead, look around for different deals or discounts that you could use once your hectic week has finished.
  • Don’t forget it is okay to spend money on yourself.
    • Sometimes it’s hard to convince yourself that you should be spending money on yourself when you have other financial obligations. Treating yourself is not supposed to be overwhelming, or make you feel bad. It is alright to spend money on yourself every now and then.

“When you treat yourself right, you run better and more efficiently. Which means you don’t have to go 100 miles an hour to get everything done.” – Ann Curry

  • Treating yourself doesn’t always have to be a big thing.
    • When you hear “treat yourself” your mind probably first went to spending money. However there is a lot more to indulging on yourself than just buying something. It is important to take some time to focus on your self-care in other ways as well. You can treat yourself without spending a single penny. Some ways to do this include: watching your favorite series on Netflix, getting outside and engaging in a physical activity you enjoy but haven’t gotten to do much of recently due to your busy schedule, or calling a friend or relative you have been wanting to catch up with.

Remember – treating yourself is important, but it doesn’t have to break the bank. For help establishing a budget or savings plan, or if you have any other financial questions, visit our website, www.k-state.edu/pfc to make an appointment with Powercat Financial Counseling. Our services are completely free and confidential to all Kansas State University students. One of our counselors would be happy to sit down with you and discuss different ways to make wise financial decisions.

Lindsay Adams, Peer Counselor I
Powercat Financial Counseling
www.k-state.edu/pfc