Most of us were never taught how to build wealth. Sure, we learned how to add up numbers in school, but no one sat us down and explained how everyday habits—both big and small—shape our financial future. Whether you’re earning a six-figure salary or just starting out, your money habits will determine where you end up.
So, what are the habits that can either make or break your financial future? Let’s break them down.
1. The “Invisible” Spending Trap
Ever wondered where all your money goes at the end of the month? You’re not alone. Subscription services, small daily purchases, and impulsive online shopping add up faster than you think.
✅ Winning Habit: Set up a “spending audit” once a month to track unnecessary expenses and redirect that money toward savings or investments.
How to Set Up a Spending Audit:
Review your past 1–3 months of bank statements and categorise expenses into Essentials (Needs), Discretionary (Wants), and Financial Goals. Identify unnecessary spending—forgotten subscriptions, impulse buys, or overspending on non-essentials. Set limits, automate savings, and track spending with an app or spreadsheet. A monthly review ensures your money is working for you, not disappearing unnoticed.
💡 Pro Tip: If you use budgeting apps like Pocketbook, YNAB, or MoneyBrilliant, you can pull your data directly from them.
2. Living Pay to Pay — Even When You Don’t Have To
Many people increase their spending as their income rises, a phenomenon known as “lifestyle inflation.” It feels good in the moment, but it keeps you stuck in the cycle of working just to cover expenses.
✅ Winning Habit: Create a budget that prioritises savings and investments before discretionary spending.
How to Break the ‘Living from Pay-to-Pay’ Cycle:
Track your income and expenses to see exactly where your money is going. Allocate your funds using the 50/30/20 rule—50% for essentials, 30% for lifestyle, and 20% for savings and debt reduction. If your expenses exceed your income, look for areas to cut back or find ways to boost your earnings.
💡 Pro Tip: Use our Budget Planner Calculator to take control of your cash flow and start building financial security today.
3. Ignoring Your Credit Score Until It’s Too Late
A bad credit score can silently sabotage your financial goals. It affects loan approvals, interest rates, and even job applications in some industries.
✅ Winning Habit: Check your credit score regularly, pay bills on time, and keep your credit utilisation low.
How to Improve Your Credit Score:
- Pay off your bills before the due date to avoid late payment marks.
- Keep your credit card balance below 30% of your limit—this keeps your credit utilisation ratio healthy.
- Check your credit report for errors and dispute any inaccuracies.
💡 Pro Tip: Many banks and credit agencies offer free credit score checks. Want to know where you stand? We can help! Contact us for a free credit check and expert advice on improving your score.
4. Not Having a ‘Plan B’ for Your Income
One job, one income stream—sounds stable, right? Until something unexpected happens. The wealthy know that multiple income streams are the key to long-term security.
✅ Winning Habit: Start small with a side hustle, passive investments, or learning new skills that increase your earning potential.
How to Build Multiple Income Streams:
Consider passive income sources such as dividend stocks, rental properties, or online businesses. Even a small freelance gig, selling handmade items, or tutoring can add up over time.
💡 Pro Tip: Not sure where to start? Think about skills you already have and explore ways to monetise them.
5. Investing Only When You “Have Extra Money”
Too many people wait until they’re “comfortable” to invest. The truth? You should start as early as possible, even if it’s with small amounts.
✅ Winning Habit: Automate investments—even $50 a month can grow into significant wealth over time.
How to Start Investing Without a Huge Budget:
- Set up a micro-investing account that rounds up spare change into investments. Example micro-investing app’s – Raiz, Spaceship, or CommSec Pocket.
- Use low-cost ETFs (Exchange-Traded Funds) to spread your risk across multiple assets. Popular options include VAS, IOZ, or A200.
- Start a regular contribution plan to invest automatically, just like a bill payment.
💡 Pro Tip: Time in the market beats timing the market—start now, even with small amounts!
6. Thinking “I’ll Save What’s Left” Instead of “I’ll Save First”
If saving is the last thing on your list, you’ll rarely have money left over. The wealthy flip this equation—they save first and spend what remains.
✅ Winning Habit: Automate savings by setting up a direct debit to a separate savings or investment account.
How to Prioritise Saving Without Feeling the Pinch:
- Pay yourself first—automate a percentage of your income into savings as soon as you get paid.
- Open a high-interest savings account to maximise your savings growth.
- Set up sinking funds for big expenses like holidays, car rego, and home repairs.
💡 Pro Tip: Even starting with $10 a week builds the habit—then increase over time.
7. Assuming Home Ownership Is the Only Path to Wealth
Buying a home is one of the biggest financial decisions you’ll make—and a powerful way to build wealth. But too many people tie up all their money in their home without exploring other financial opportunities that can accelerate their financial growth.
✅ Winning Habit: Think beyond your owner-occupied home—consider smart property investment strategies alongside other wealth-building options.
How to Build Wealth Beyond Just Owning a Home:
- Invest in shares or ETFs to complement your property portfolio and diversify risk.
- Consider property investment—owning a home is great, but strategic investing in real estate can help you build wealth faster.
- Maximise superannuation—small extra contributions now can mean big gains in retirement while offering tax benefits.
💡 Pro Tip: Looking to invest in property? Our team can help you explore smart borrowing strategies for building a profitable property portfolio. Speak with a Mynt Financial expert today.
Conclusion: Change Your Habits, Change Your Future!
Success with money isn’t about luck—it’s about small, consistent habits that add up over time. Whether you’re fixing past mistakes or starting fresh, the key is to take action now.
💡 Ready to make smarter financial moves? At Mynt Financial, we help people create wealth-building strategies that fit their lifestyle. Book a chat with us today and start securing your financial future.
