Understanding your Money Habits

Welcome to Day 1!

You’re here because you’re ready to take control of your spending, and that’s a huge step. I know firsthand how easy it is to let little purchases add up—$5 here, $20 there—until you’re wondering where the hell all your money went. For me, it was those “just one thing” trips to Target that somehow turned into a cart full of impulse buys. Or the convenience of takeout when I had perfectly good food at home. It wasn’t until I truly looked at my spending habits that I realized how much money was slipping through my fingers.

This challenge isn’t about guilt—it’s about awareness. When you understand where your money is going, you can make more intentional choices.

Today, we’re going to lay the groundwork for lasting change.

Why do We Need to be Aware of Our Habits?

Because our choices are often made on auto pilot. Sometimes even before our conscious brain kicks in and tells us “hey that’s our last $20 until payday!” 

If we don’t pay attention to where our money is going, it’s easy to fall into cycles of overspending, living paycheck to paycheck, or feeling like we never have enough, even when we should.

When we become aware of our habits, we:

✔Recognize our spending triggers – Whether it’s boredom, stress, or convenience, knowing why we spend helps us break unhealthy patterns.
✔Make intentional choices – Instead of reacting to every sale or impulse, we learn to prioritize what truly matters.
✔Gain control over our finances – Money stops feeling like something that just “disappears,” and instead, it becomes a tool we manage with confidence.
✔Build better financial habits – Awareness is the first step to change. Once we see where our money is going, we can redirect it toward savings, investments, or goals that actually improve our lives.

In short, money habits shape our financial future. If we don’t take control of them, they’ll control us.

So, how do you become aware of what your spending habits are?

Track Your Spending for One Week

Before you can cut back, you need to know exactly where your money is going. Your task, for however long you need, is to start tracking your spending. This can be as simple or detailed as you like:

• Option 1: Keep a small notebook and jot down every dollar spent.

• Option 2: Use a notes app on your phone for quick logging.

• Option 3: Download a free expense-tracking app like Mint or EveryDollar.

• Option 4: Use the free printable that came with this course!

The key is to track everything—even small purchases like a coffee or a $1 app download. These little expenses often add up the fastest! And when you finally see it all on paper you can begin to realize where your money is going and how much of it was essential or not.

Goal for the Day: Create Your Spending Snapshot

At the end of the day, take a moment to reflect. Look at where your money went today and consider:

• Were any of these purchases necessary?

• Were any of them out of habit, convenience, or impulse?

• Is there anything you wish you hadn’t spent money on?

• What was the trigger that caused you to buy that item?

If you really want to see the bigger picture, go back through the last 30 days of your bank statements. Highlight non-essential or impulse purchases. This exercise can be eye-opening—it’s easy to underestimate just how much we spend on things that don’t truly add value to our lives.

Daily Mindset Shift

"Tracking my spending isn’t about restriction—it’s about empowerment. The more I understand my habits, the more control I have over my financial future."

Say this to yourself anytime you’re feeling down about trying to be frugal. 

Identifying Spending Triggers

If you want to go deeper, take 10–15 minutes to review past expenses. Look for patterns like:

• Frequent fast food or coffee runs

• Late-night online shopping

• Emotional or stress spending

• "I deserve this" purchases after a hard day

Recognizing your biggest spending triggers will help you prepare for the days ahead.

Final Thought for Today

Money isn’t just numbers—it’s habits, emotions, and mindset. The more you understand your spending, the more power you have to change it. No shame, no guilt—just awareness and intention.

Tomorrow, we’ll talk about decluttering your mindset so you can shift into a no-spend mindset and set yourself up for success.

Now go take that first step—track your spending and take control! 

If you can’t wait for day three hit the button below to fast track your way to finical freedom!