Positive Financial Habits to Adopt in 2024

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Financial stability comes from healthy financial habits. Although you cannot develop good financial habits in a day, you can surely build them one at a time.

Good financial habits are the building block of your financial stability and future financial security. To develop these habits, you don’t have to make massive changes but start by making small changes in managing your spending and finance.

Developing good financial habits might seem complicated at first, but they will benefit you in the long run. Here are ten positive financial habits you can adopt in 2024 and lead a financially healthy life.

1. Create Budget and Stick to It

If you want to make the most out of your money, you need to plan a fixed budget and stick to it. To create a budget, you need to plan things such as:

  • Monthly Income: how much is your regular monthly income, and do you have any alternate source of income?
  • Monthly Expenses: keep in mind your monthly expenses such as rent, bills, loans, EMIs, clothing, groceries.
  • Monthly Savings: always consider your salary before creating a monthly savings plan. How much can you practically afford to save every month?

2. Invest

The best way to save and make money is through investing. When you receive your salary, keep some amount aside for investment. You can open SIPs, PPF, and insurance policies, which are great low-risk investment strategies.

3. Minimise Credit Cards and Avoid Debt

Always choose debit cards over credit cards whenever possible. You have an instant idea of how much money is left in your bank account with debit cards. That way, you know how to handle expenses after that.

Apart from using debit cards, avoid getting yourself into debt. You might get the urge to spend money beyond your means and start borrowing money from friends and family or take loans from banks, but if you avoid debts in the first place, you can improve your financial situation.

4. Reduce Impulse Buying

Impulse buying means purchasing anything that you weren’t planning in your budget. It can be as small as buying clothes to as big as buying a smartphone.

Impulse buying is the biggest obstacle in leading a financially positive life. To stay within budget and adopt positive financial habits, you need to reduce your urge to shop impulsively. You can do this by:

  • Planning big purchases in advance
  • Selecting zero cost EMI or “buy now and pay later” options for expensive purchases

5. Emergency Fund

Emergency funds are funds where your money is readily available whenever you need it. For example, you can use these funds in medical emergencies.

Building emergency funds isn’t just a habit, but it is indeed a need. You can face emergencies at any point in your life. To overcome them, you need to keep a backup for yourself. Opening a savings account, fixed deposits, or liquid debt mutual funds are the options you can explore.

6. Pay Your Bills on Time

A small but crucial step in your financial life is paying bills on time. Sometimes you get late in paying your bills because you don’t have enough time or are simply too lazy, but timely submission of bills is necessary to avoid late charges.

Paying bills on time is also a great way to create financial discipline and keep you organised. You can pay your bills on time and avoid late charges by following these simple steps:

  • Set reminders on your phone
  • Automate the payment of your bills

7. Make Retirement Plans

One of the most crucial steps in maintaining a healthy financial life is making retirement plans. Retirement planning is meant for long-term objectives, and you should start it at a young age to reap the benefits of compounding over the years.

The sooner you plan for your retirement funds, the better benefits you get out of it post-retirement. They will eventually add up and pay you off a vast sum if you save even small amounts.

8. Search for Passive Earnings

Often referred to as money earned overnight, passive earning is a steady cash flow that will build security over a long time.

Earning through passive income will need some kind of investment from you. The investment can be of either money or time. You can begin your passive earnings through plausible options of renting your property or through affiliate marketing.

9. Automate Your Investments & Expense Payment

Automating your expense payment and investments saves you the time to think every month and prevents you from missing out on monthly payments. Missing out on your monthly payment is inconvenient. Moreover, the extra late fees you get are also a burden.

Hence, using technology to your advantage and automating all your payments and investments is the best way to stir clear from late charges and any related hassles.

10. Involve Your Kids

Discussing positive financial habits should be family time. There is no age to learn about proper financial habits. Kids at 14 understand what their parents are doing.

Involving them and telling them the importance of investing and saving money, where and how to invest it, is necessary for their future.


The most important part of adopting positive financial habits is getting started right away! You can find thousands of excuses on why you cannot start your personal finance journey.

It can be because of the market or your personal reasons. Either way, get started immediately. The sooner you start, the sooner you will become financially independent.

Aatish Khanna

Aatish Khanna works with the Content Marketing team at Money Club, a digital chit fund platform that makes saving, borrowing, and investing your money more efficient. He writes on topics to help his readers understand processes so they can make better financial decisions. He’s the go-to person that his family, friends, and colleagues turn to for all their money matters. He loves to play board games and aspires to one day build his one finance-related board game and app.