In sport, we train to get fitter and achieve better results. If we have a hobby, we practise to get more proficient. Our relationship with money should be no different.
If we are to achieve our goals, we need to develop good discipline in how we spend, save, and invest.
Here are seven tips to help you adopt intelligent money habits and feel more financially secure.
1. Setting goals
When Alice in Wonderland asks the Cheshire Cat the way (saying she doesn’t much care where she gets to), he responds, “Then, it doesn’t much matter which way you go.“
Likewise, if you just have a vague notion of what you’d like to achieve with your money, you’re unlikely to realise it anytime soon.
But if you set clear goals with timelines attached, you’ve got much more hope of fulfilling them. So, write them down. Set realistic and specific targets.
Your short-term goals could include paying off a credit card or building a rainy-day fund. By contrast, your long-term goals could involve saving for retirement or purchasing your dream home. If you want to retire early, what year are you aiming for? How much will you need in your pension pot?
Set mini-milestones to track progress and adjust your targets if necessary. And celebrate when you reach them. That way, you’ll keep yourself motivated.
2. Saving regularly
Whether you’re saving for one of your short-term or long-term goals, putting money aside regularly is a great habit to get into. And the earlier you can start saving consistently, the better.
Investigate the different types of savings accounts and check out interest rates, fees and the number of withdrawals allowed.
High-interest savings accounts offer better rates of return than traditional savings accounts, but they may come with conditions, such as minimum deposit requirements or withdrawal notice periods. Make the most of your tax-free allowance by investing in an ISA, up to £20,000 in the 2026/27 tax year. Whatever you choose, finding an account that best aligns with your objectives is important.
Automate as much as you can. If you set up a direct debit from your current account for a fixed amount or percentage of your salary, it will feel like you’re paying yourself first. Sit back and let your nest egg grow.
3. Budgeting boldly
Think consciously about what you’re spending in advance. Setting a budget gives you a clear picture of what’s coming in and going out. This will help you live within your means and avoid getting into debt. It also helps you see if a certain category is soaring, for example, energy bills.
You may find downloading a budgeting app helpful for managing your money without grappling with your own spreadsheets. Most have free and paid subscriptions.
Simply connect a trusted app to your bank account and let it keep track of your expenses. Ultimately, however, it’s down to you to make your own savings.
4. Borrowing responsibly
Some debt may be necessary to fund university fees or to pay for a property with a mortgage. But it’s important to minimise high-interest debt so your borrowing doesn’t get out of control.
Assess all your debts. Stay on top of all your loans and credit cards. Try to pay more than the minimum amount each month. Make it a priority to pay off those with the highest interest first. Otherwise, the amount you owe can escalate quickly as it attracts compound interest.
You could consider a consolidation loan, where your existing debts are paid off and combined into a single monthly repayment at more favourable terms. This makes it easier to manage.
5. Reviewing the situation
It’s crucial to review your financial situation regularly. Get into the habit of checking your bank accounts daily, either online or using a mobile banking app. That way, you can spot any unusual or fraudulent payments straightaway.
The sooner you contact your bank about any unauthorised payments, the easier it will be to resolve and get a refund.
It also helps you avoid going overdrawn and incurring fees, as you can see exactly what’s going out and coming in.
6. Avoiding impulse purchases
Set yourself the 24-hour rule. If you’re tempted to buy something, ask yourself if you really need it. Is it a necessity or a want? By making yourself wait 24 hours, you can check how important the purchase is.
Promotional point-of-sale material and clever product positioning encourage us to make impulse purchases. Social media has only increased this tendency. You could just be scrolling through your feed when a seemingly irresistible item pops up.
Messages such as ‘Buy Now’, ‘Only 5 items left’, and ‘121 people are viewing this ad’ all contribute to the fear of missing out. Yet, all too often, when we’ve parted with our cash, we regret that sudden purchase.
So, try to curb impulsive spending habits and remember your long-term goals.
7. Learning from experts
There is a wealth of financial information out there. Equip yourself with as much knowledge as possible so you become financially literate and can make informed choices about your money.
Trawl the internet for free articles, podcasts and online courses. Borrow library books. Read up on budgeting, investing, debt management and retirement planning. Follow financial experts to see what tips they have to offer.
Plus, keep yourself up to date on news about interest rates and inflation.
Good habits don’t click into place overnight. But if you can start to implement some, they will form a solid foundation for your financial well-being.
Please get in touch if you’d like to know more about developing any of these money habits.
The content in this article was correct on 24/04/2026.
The value of your investment can go down as well as up and you may get back less than the amount invested
The Financial Conduct Authority does not regulate Tax Planning
You should not rely on this article to make important financial decisions. Teachers Financial Planning offers advice on savings, pensions, investments, mortgages, protection equity release and estate planning for teachers and non-teachers.
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