Learning to be good at anything new takes time, trial and error, and dedicated practice. Now that it’s been two months since starting my financial journey, I’m getting more familiar – and more comfortable – with good money habits that are helping me reach my financial goals.

Here are six things that have made the biggest impact on my journey to financial literacy and success:

1. Financial Deep Dive

If you hope to reach any financial-related goals, this is a non-negotiable first step: you need to establish your current financial situation. That means doing a deep dive into your income, spending habits, bills, subscriptions — anything that has to do with your money coming in and going out.

Financial podcasters The Budget Besties, who I’ve mentioned in a previous post, recommend a 90-day financial audit. When I first started my journey, I chose to examine the last 30 days because it felt less daunting and more manageable for me. That was enough to set me up for every other step that followed.

To start your deep dive, establish your monthly income. If you don’t earn a regular monthly income, go by an average. Determining how much money comes in for you every month is crucial because it allows you to figure out what happens to it throughout the month. Remember, the point of this journey is to put yourself in a healthy financial situation where you’re paying all your bills on time, reducing any debt you may have, and building personal savings — all while still enjoying the things in life that matter to you.

After establishing your income, note all of your monthly bills: each amount and the dates they’re due. Tracking this is important to make sure you have the money you need when you need it, so that you don’t get hit with unexpected NSF or late fees, or dig yourself into a hole with your accounts.

Lastly, take a look at your spending habits and note how much you tend to spend on the “extra things”: eating at restaurants, going out, shopping, gifts, personal maintenance, home decor and vehicle accessories.

Be warned: although crucial, this step can bring up uncomfortable feelings because it requires you to confront yourself. When I realized how much I was mindlessly spending on things like subscriptions I forgot about, boredom purchases, monthly fees, impulsive shopping or outings… I felt genuinely embarrassed, even ashamed. I was blowing hundreds of dollars every month that I could’ve been saving or putting toward my bills and debt. That “only $5” spent each day on a muffin or breakfast sandwich on the way to work, or that “really good deal” on something off Amazon that I would never end up using? It adds up. And it impacts your overall financial well-being more than you might realize.

2. Cut the Fat

Once I got over the shame of my financial habits and reconciled with my current financial situation, I was able to start implementing positive changes. The first thing I did was cancel every unnecessary subscription I was paying for. This was tedious and, at times, frustrating (a lot of companies make it unnecessarily complicated!), but every minute spent was worth every dollar I would re-claim each month. Do the hard thing now so things will be easier for you later. You’ll always be grateful that you did.

The other factors that were contributing to the mindless draining of my bank account required behavioural changes that I needed to make. I stopped buying that blueberry muffin every morning before work, stopped scrolling on Amazon when I was bored, started paying every bill on time since I now had reminders in my calendar, and even closed my longest-standing bank account (the first one I ever opened back in 9th grade) after deciding I wasn’t going to deal with monthly bank fees anymore.

Whatever is taking your money from you that doesn’t need to be, make those necessary changes. Decide that it’s worth it to have the money for yourself and the things that you value, rather than going into the void or in the hands of corporations that encourage your oblivion. Be protective of the money that you earn. It won’t protect itself.

3. Automate Your Bills

Once you’ve figured out your monthly bills and when they’re due, set up automatic payments for each one so they’re paid on time without you having to think about it. It lightens the mental load and helps you stay consistent. It also protects you from late fees, missed payments, and the stress of trying to keep track of everything.

Since you already know the amounts needed for each bill, you can total them and make sure that amount is set aside each month. Because this number stays the same, it’s easy to remember and to plan the rest of your monthly spending around it.

Which leads us to the next step:

4. Build a Budget

I know, I know. Nobody likes the B-word. But the truth is, it’s impossible to reach any financial goals without setting some kind of budget for yourself. Now that you’ve made note of your income and taken care of your monthly bills, you need to assign the money you have left. Give each dollar a job. If you don’t, you’ll continue to spend mindlessly and could end up wasting hundreds or even thousands of dollars that could’ve gone toward your financial goals.

To start, determine your spending categories: groceries, rent, gas, gifts, self-care, savings. Whatever you need or want to put your money toward each month, figure out the amounts and stay within those limits. Keep in mind anything specific coming up like birthdays, celebrations, irregular bills, car maintenance – and be sure to account for them.

Easier said than done, for sure. But simply being intentional about your spending already sets you up to start doing more with your money than you might have ever thought possible. Like all habits, sticking with a budget takes time to build. If you’re not used to tracking your money, it can be hard at first, and you’ll most likely end up needing to make tweaks along the way. This is normal – do not let it discourage you. Stay persistent and mindful and, before you know it, you’ll be budgeting without having to give it a second thought.

5. Re-Define Your Banking

This step is optional, but for someone like me who used to look at my account balance and spend as long as there was something in there, doing this made a crucial difference. I opened new (free) bank accounts from separate financial institutions, and designated them by function: one account for bills, one for spending, and one for saving. As mentioned, I also closed an account I’d had since I was a teenager because the fees kept going up and were costing me over $30/month. That’s hundreds of dollars a year – no thanks.

Before this, I already had two separate banking accounts, so adding a third didn’t feel daunting. Most jobs allow you to split your direct deposit between two accounts, and I previously had mine set up so a percentage automatically went to my second account every payday. That account was meant to accumulate savings, and it did, for a while. But because I wasn’t being mindful with my main banking account, I’d end up dipping into my savings now and then. When I went through financial hardship last year, I drained everything I had saved up… plus my entire credit card balance.

Today, I have three separate bank accounts. One is for bills, where all my payments are automated (this is also the account my paycheck goes into). A second account is for savings, where I transfer a predetermined amount each week. The third account is for spending. Each month, I calculate what I need for bills and savings, and whatever’s left goes into my spending account. That way, I know exactly how much I’m allowed to spend, and I don’t have to do mental math every time I make a transaction. If I ever want to check how much I can spend, I just look at the balance in that account. It helps me plan my spending, and since it’s separate from my bills account, I don’t have to worry about accidentally using money that was meant for a payment I forgot to account for.

It might seem tedious to have multiple accounts with different banks, but it’s basically a modern, digital version of the old-school cash envelope system – where you separate physical money into envelopes labeled things like “groceries,” “bills,” “travel,” “house,” “savings,” to allocate where your money is going. You can open as many accounts with as many banks as you’d like, just like you can create as many envelopes as you need. Some people open accounts specifically for groceries, or household purchases. Others have accounts just for their kids’ needs or hobbies.

If you decide to go this route, make things easier for yourself by opening free bank accounts. In Canada, we have a number of reliable, no-fee banking options available: Simplii, Tangerine, PC Financial, and EQ Bank, among others. I opted for PC Financial because I like that I collect PC points when I use it. The other free bank I chose was Simplii, based on a recommendation from a family member, and I’ve been generally happy with it. The third banking account I have isn’t from a no-fee bank, but it’s fee-less because of the account type I use.

When making your selection, you can also consider things like interest rates, transaction habits, or customer service. Make sure to do your research, read reviews, and consider your personal banking needs and values to ensure that you choose banks that are right for you.

6. Split Your Savings

This is another optional step, but it made all the difference for me when it came to saving. I mentioned before that I used to automatically send a percentage of my paycheck to a second account meant for savings. This practice is definitely effective, and if it sounds like something you could benefit from, I’d absolutely recommend giving it a try.

But now that I’ve been setting actual financial goals for myself, I gave myself a slightly ambitious target for how much I wanted to save each month. Partly to see if I could, but also because building a personal savings fund is one of my core goals with this journey, and I wanted to set aside something significant.

At first, I tried setting aside the whole amount in one go, but because I get paid biweekly, I would inevitably end up having to pull some out to make payments elsewhere before I received my next paycheck. Next, I tried splitting the amount in half and started setting that aside every two weeks. This is essentially the same as setting aside a certain amount or percentage with each biweekly paycheck which, again, is effective. But since it was still early in my journey and I was still learning how to establish and navigate a budget, there would inevitably be things I forgot to include, or amounts I would have to tweak, and I wouldn’t always be able to put even the half aside when the two weeks came up.

Finally, the last thing I tried was splitting my goal into four and putting that amount into my savings account each week. This ended up being the method that worked for me and it’s what I continue to do now. Because it’s a small amount being set aside each time, I hardly even notice it and can navigate the gap with ease. I don’t end up waiting for my next paycheck or feeling bad because I couldn’t set aside a large amount all at once. I continue budgeting the rest of my money throughout the month, and by the time the month is up, I’ve reached my full monthly savings goal without even realizing it.

The monthly amount never changed, just the way I went about setting it aside. This was a game-changer for me. If you’re trying to save a certain amount each month but find it hard to stick to, don’t adjust your goal just yet. Try adjusting how much you put aside at a time. You can even automate your transfers so the money goes into your savings account without you having to do anything.

I know this can also be done with a savings and chequing account within the same bank, but if you followed the previous step and opened separate accounts for each “envelope,” this method helps (especially if you’re someone like me) because you don’t see your savings balance unless you open that specific account. For me, that means I never feel tempted to spend it. And when I do sign into that savings account at the end of the month and see my balance, I always feel pleasantly – and proudly – surprised. It encourages me to keep doing what I’m doing and affirms that my goals are attainable. What better motivation could you ask for?

As time goes on and I learn more and more, I continue to discover ways to reach my financial goals, but these six laid the foundation for success. If any of them resonate with you, give them a shot. If they don’t end up working, at least you’ll have learned something, and sometimes, that leads you to what does work instead. Every path to success is different, but each one starts with taking that first step.

If any of these steps are familiar and have worked for you, too – or if you have some money tips and tricks of your own – feel free to leave a comment below. I’d love to hear all about it.

Wishing you a fruitful financial journey,

Antonette