Managing money well is more important than ever as costs rise. For example, inflation has jumped around 17% in recent years (5 Financial Questions to Ask Yourself Before 2025 – NerdWallet Canada), meaning our dollars don’t stretch as far as before. By adopting smart habits now, you can feel more in control of your finances in the coming year. Here are five simple, practical money habits to try in 2025, each with an easy example or app to help you along.
1. Track Your Spending and Budget
Knowing where your money goes is the first step to saving. Try using an app or spreadsheet to record your expenses and set a basic budget. Tools like Mint or You Need A Budget (YNAB) automatically categorize transactions, and newer apps like PocketGuard, PocketSmith, or Honeydue will show you exactly how you spend in each category (5 Financial Questions to Ask Yourself Before 2025 – NerdWallet Canada). Seeing a summary of your spending each week or month helps you spot areas to cut back (for example, dining out or subscriptions). Over time, this gives you a clear picture of your habits and where to save more.
2. Automate Your Savings
(Money Saving Pictures | Download Free Images on Unsplash)Make saving money effortless by automating it. Set your bank to transfer a fixed amount (even $5 or $10) into a savings account each payday. You can also use round-up apps: for example, Acorns or Stash will round your purchases up to the next dollar and invest the extra change. Other apps like Digit or Qapital can analyze your spending and quietly move small amounts into savings. Even small weekly deposits grow over time in a high-interest account, especially when you never miss a contribution.
3. Build an Emergency Fund
Aim to save a few months’ living expenses in an “emergency fund” separate from your checking account. Keeping this money in a high-yield savings account means it’s still earning interest while sitting aside for urgent needs. Contribute regularly (even a small amount each week) using automatic transfers, and your fund will grow steadily. Financial experts recommend this as a top priority – any extra cash you have should go toward boosting your emergency savings (5 Financial Questions to Ask Yourself Before 2025 – NerdWallet Canada). With a cushion like this, unexpected bills (car repairs, medical costs, etc.) are much easier to handle.
4. Start Investing Early
You don’t need much to get started with investing. Apps like Robinhood or Acorns let beginners invest even tiny amounts; in fact, Robinhood’s app is noted for being very user-friendly for new traders (Best Investing & Stock Trading Apps: Top Picks for 2025 – NerdWallet). Robo-advisors (like Betterment or Wealthfront) can also help by automatically building and managing a diversified portfolio for you. If you invest just $5–$10 a week in an index fund or retirement account, compound interest will grow that money a lot over the long run. The key is just to start and make investing a regular habit.
5. Pay Down Debt and Spend Wisely
High-interest debt (such as credit cards) can quickly eat up your budget. Try to pay more than the minimum whenever possible, focusing extra payments on the debt with the highest interest rate. Whenever you get any bonus or refund, use it to pay off debt or add to savings (5 Financial Questions to Ask Yourself Before 2025 – NerdWallet Canada). Also be mindful of fees and extras: for example, pay your credit card on time to avoid late penalties, and cancel any subscriptions you don’t use. Even small changes – like switching to a cash-back card or finding a cheaper phone plan – can free up cash to tackle debt faster.
Conclusion
Getting started on better money habits in 2025 doesn’t have to be hard. Pick just one habit to focus on and build from there, gradually adding more over time. Consistency is key: even small steps (like automating $5 or skipping a weekly coffee) will add up in the long run. If you stick with these habits, you’ll head into 2026 with more financial security and confidence. Best of luck – you’ve got this!
Sources: Expert financial guides and app reviews (5 Financial Questions to Ask Yourself Before 2025 – NerdWallet Canada) (5 Financial Questions to Ask Yourself Before 2025 – NerdWallet Canada) (5 Financial Questions to Ask Yourself Before 2025 – NerdWallet Canada) (Best Investing & Stock Trading Apps: Top Picks for 2025 – NerdWallet).
