Living a life where we feel financially secure is ideal. In a world where bills are constant and we must pay for everything from rent or mortgages to car expenses, food, and more, covering the necessities can often feel overwhelming and stressful. Many of us also want to indulge in leisure activities and guilty pleasures. However, building savings provides peace of mind, knowing we have a financial cushion for emergencies and retirement. In the long term, this approach can help grow our wealth.
It’s important to recognize that not all of us will become billionaires or even millionaires. Not everyone will be able to buy mansions or luxury cars, even when our savings are significantly increased. Wealth doesn’t have to be defined by luxury. Instead, it can simply mean a life of comfort and financial security, with extra funds set aside for emergencies and the future. In two recent Instagram posts, financial expert Kait shared top micro-habits that could significantly increase our capital.
Here are 12 micro-habits that can significantly increase your wealth:
1. Swap one (or more) name-brand grocery item(s)
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If you’re looking to save money, there are many easy ways to begin. One way is to swap one (or more) name-brand grocery item(s) for store-brand options or any other cheaper alternatives.
Most people buy groceries at least once a month for the rest of their lives. Just imagine how much money you could save over time!
Consumers can save an average of 25% to 30% on their grocery bills by choosing store-brand options over name brands, according to a study from the Private Label Manufacturers Association. You may be surprised how many great alternatives are out there that will help you save money.
2. Wait a day before buying something you want
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Most of us have had the urge to buy something that is not a necessity. It could be that dress, those heels, a new surfboard, you name it. It’s perfectly ok to indulge occasionally and enjoy.
However, it’s best to do it within your means. A great way to prevent impulsive shopping is to wait 24 hours before buying an item. During those 24 hours, evaluate whether it’s something you really want.
In 2023, Americans spent an average of $151 per month, or $1,812 annually, on impulse purchases. While that’s a significant decrease from the $314 monthly average in 2022, it’s still a lot of money.
One medium that consumers frequently use to make purchases is social media. A Bankrate survey revealed that in 2023, U.S. adults spent $71 billion on items they discovered through social media. So, put down those devices — you’re likely to save money.
3. Practice gratitude daily
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Kait asked the question, “What does gratitude have to do with wealth?” She responded, “Everything.”
You might not realize the power of words like “Thank you,” but they go a long way. Believe it or not, gratitude develops feelings of happiness, contentment, and connection while reducing stress, anxiety, and depression, according to Barbara Field from Verywell Mind.
How does this connect to making wealth? When you’re happier, you have more energy to work on the things that can make you wealthy, such as a side hustle. It can also inspire creativity or give you clarity as to what you want to do with your life. Also, it is likely that the people around you will feel happier and want to help you.
4. Limit social media scrolling
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A lot of us struggle with constant social media scrolling. The truth is we’re wasting a lot of time. It’s fine to keep up to date with some content, but spending hours and hours on it might be taking time away from important things that need to get done.
A study from 2023 found that adolescents who checked social media frequently developed differently than adolescents who checked it less.
Those who checked their phones more often became more focused on what others thought of them, while those who checked less didn’t show this effect. The heavy users also had higher dopamine levels, which is linked to addiction, and more activity in the amygdala — the part of the brain that controls emotions. This is often linked to impulse control issues. In contrast, those who use social media less are better at controlling their impulses and making thoughtful decisions.
But how does this carry over into adulthood? For one, the habit of scrolling through social media may continue, potentially leading to ongoing issues like low self-esteem, anxiety, and depression. Additionally, spending excessive time online can take away from valuable work time that’s needed to pay bills and earn extra money. By reducing time spent on social media, individuals can develop better productivity habits.
5. Increase your retirement contribution
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Retirement is the dream. It’s the time in life to relax and enjoy the financial security we’ve worked hard for. But what if we don’t have enough funds to finally take a break from work?
That’s why it’s important to increase your retirement contribution early, especially for women who are already at a disadvantage due to the pay gap and investing gap.
There are several ways to boost retirement savings. For example, opening a 401(k) through your employer, or if you’re self-employed or own a business, consider opening a solo 401(k), SIMPLE IRA, or SEP IRA.
Also, consider contributing to your workplace retirement account up to the employer match, contribute to a health savings account (HSA) to its maximum limit, and, if possible, max out your 401(k) contributions each year. You could also consider opening an IRA, adding after-tax money to your 401(k), or investing in brokerage accounts.
Unfortunately, not everyone will have the option to open a 401(k) or other retirement plans, either because their employer doesn’t offer them, discrimination, or other barriers. However, no matter the reason, open a savings account and save, save, save. Over time, you’ll be able to build a solid amount for retirement.
6. Upgrade your mindset
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The next micro-habit to increase your earnings is upgrading your mindset. According to Kait’s financial expertise, “Your financial reality is directly tied to your beliefs about money,” which is similar to what manifestation coaches often teach.
She explained, “If you see money as scarce or think you’ll ‘never get ahead,’ that belief becomes your reality.” If this mindset is your reality, it can be difficult to change, as it may stem from childhood experiences, family struggles, or a sense of giving up.
But hope is not lost. To start changing your mindset, embrace challenges as opportunities rather than losses, practice positive self-talk, and surround yourself with positivity — whether it’s through supportive friends, the music you listen to, or other uplifting influences. Finally, set goals and learn from your mistakes.
7. Detach from spending to impress
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Spending to impress can become a habit, especially with social media influencing us to compare ourselves or compete with others. We may feel the urge to impress to feel special, but this can leave us feeling empty.
A recent LendingTree survey of nearly 1,600 U.S. consumers found that nearly 40% have overspent to impress others, with 16% spending on clothes, shoes, and accessories, and 15% on gifts. Among those who overspent, 27% are currently in debt, while 36% have been in debt in the past. Gen Xers are the most likely to be in debt, with 34% having overspent.
So, is it worth it? Instead of trying to impress, consider using that money to build wealth and detach from the need to impress others.
8. Focus on small consistent wins instead of perfection
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Try not to focus on major financial achievements like investing on Wall Street or winning the lottery. Small steps are just as valuable as big milestones because they represent progress.
Certified financial planner Liz Frazier from Forbes suggested setting small, achievable, and specific goals for effective saving. Large, vague goals can make tracking progress difficult and reduce motivation.
Start by saving $10 or $15 each week if your budget is tight. As you reach your goal, gradually increase the amount. This approach helps you accumulate $40 or $60 a month, and watching your savings grow will keep you motivated.
9. Breakup with the ‘more, more, more’ mentality
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Kait clearly explained what she meant by “[breaking] up with the ‘more, more, more’ mentality.” She said, “If you always need the next thing to feel successful, you’ll never feel successful.”
Instead, she suggested focusing on gratitude for what you already have. You may find that you don’t need much, and sometimes the saying “less is more” really applies.
To adopt this perspective, business psychologist Dr. Camille Preston from Psychology Today advised practicing mindful consumption — thinking about the value of an item, its costs, and whether it can be reused. Embracing simplicity not only fosters gratitude but also helps put more money in your pocket.
10. Build relationships, not just a resume
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This may seem surprising to some, as we’re often taught that success is solely achieved through hard work and performance. However, that’s not the whole story. Building relationships is equally important.
As Kait pointed out, forming meaningful connections throughout your journey can be beneficial, providing support and opportunities over time.
As Fast Company noted, resumes showcase someone’s experience but don’t reveal the person behind the job titles. By meeting someone and building a relationship, you can better understand their character and determine if they’re a good fit. Just be yourself — someone will recognize your value.
Having a robust network can also help you make career moves that could change the trajectory of your earning potential.
11. Read or learn something at least 10 minutes a day
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Believe it or not, reading for just 10 minutes a day can make a big difference when it comes to your wealth potential.
In fact, a study published in 2015 revealed that adults who read at least ten more books a year than was required of them while they were in school earned 21% more money than peers who didn’t do much or any reading for pleasure as kids.
Spending your time reading and learning even as an adult is always a boon, whether to your well-being or your wallet. As we’ve learned, the two are linked.
12. Put unexpected money toward future wealth
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Kait’s final micro-habit for increasing wealth was to direct unexpected money toward long-term financial growth rather than instant gratification. She explained, “Tax refunds, bonuses, side hustle money, it can all be easy to mentally spend before it even hits your account.” She added, “BUT, if you put it towards your future self,” these small changes can lead to a significant impact over time.
It’s easy to look at anything “extra” as a windfall, but instead of using that money as a means to instant gratification, put it into a high-yielding interest account and make your money work for you!
By incorporating these micro-habits, you’ll quickly be on the path to growing your savings. This will provide financial security, making retirement more comfortable. Learning how to save is not only rewarding, but it’s also valuable knowledge you can share with others.
Mina Rose Morales is a writer and photojournalist with a degree in journalism. She covers a wide range of topics, including psychology, self-help, relationships, and the human experience.