4 Financial Habits That Look Boring — but Build Real Wealth
Written by
Josephine Nesbit
Edited by
Jenna Klaverweiden
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Building wealth is a slow grind and typically doesn’t come with instant results. It’s a series of small, repetitive decisions that may feel underwhelming but, over time, compound into something more.
And sometimes, the best money habits are boring. Finance experts shared some of their top financial habits that may seem boring but can build real wealth over time.
Use the Rule of 72
One financial habit Tom Mathews, Certified Financial Educator (CFEd) and author of the book “How Money Works,” recommended is using the Rule of 72, a formula that estimates the number of years it will take for your money, like an investment, to double.
“Take the number 72 and divide it by the annual interest rate percentage of your investment,” Mathews said. “The result tells you the approximate number of years it will take for your money to double.”
It helps build wealth by making compound growth easier to understand and demonstrates how long it will take your money to double at a given rate of return. This can help motivate investors to start early, stay consistent and pay attention to how even small differences in returns add up.
Automate Savings and Investments
Another “boring” financial habit is to automate your savings and investments. “When money automatically is set to move to savings, retirement or brokerage accounts, it removes emotion and temptation,” Mathews explained.
You can also do the same with building emergency savings.
According to consumer and money-saving expert Andrea Woroch, emergency savings can help you pay for an unexpected bill or get through a tough financial time without racking up debt. She recommended aiming for at least three months’ worth of living expenses set in a separate account.
“Setting up automatic transfers from your checking account directly to savings or for small amounts you won’t miss each week,” Woroch explained. “Keep in mind, where you stash this emergency is equally important as a high-yield savings account offers higher interest rates, so your savings works harder for you.”
Track Spending
Tracking your spending is another boring habit, but it’ll show you exactly where your money goes each month. “You don’t need any big fancy, complicated spreadsheets, but when you know where your money goes, it can help you change your behavior,” Mathews said.
It can also help you avoid making impulse purchases. “If you can’t resist a sale, delete shopping apps or turn off push notifications and unsubscribe from store newsletters to avoid those discount temptations,” Woroch recommended.
She added that you can reduce impulse buying by avoiding going into stores that have spending temptations and shopping online or doing curbside pickup instead.
Let Time Grow Your Money
“Keeping an eye on your money and investments is certainly important, but sometimes the best advice, and most boring of all, is doing absolutely nothing but letting time grow your money,” Mathews said.
This is a great long-term strategy, and it can prevent knee-jerk reactions to market volatility. “Compounding rewards patience,” Mathews said. “The younger you are when you start, the more your money will grow.”
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