These 3 Habits Will Instantly Make You Better With Money, According to George Kamel

©George Kamel

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Managing your money and financially getting ahead can feel like an uphill battle. Recently, Ramsey Solutions money expert George Kamel posted a YouTube video explaining how adopting three simple habits can immediately improve your money skills, helping you to improve your financial situation and build wealth.

He recommended trying the following habits for 30 days to see how they can boost your finances.

Track Your Expenses Daily

“If you want to get better with your money, you have to pay attention to your money,” Kamel said.

The best way to do this is to note where every penny of your money goes. Tracking your spending and expenses helps you identify areas for improvement and stay accountable with your budget. 

Additionally, Kamel said asking the following questions before buying something can help keep your spending in check:

• “Will the purchase add value to my life?” 
• “Am I buying this for the right reason?”
• “Is this in my budget?”
• “Is this the best place and price to buy?”
• “Is now the right time to buy it?”

If you answer “yes” to all five questions, Kamel said you should go ahead and make the purchase — and track it. He also recommended waiting 48 hours before making any big purchase. This extra time can help you avoid the regret of a costly buy.

Use Your Own Money for Every Purchase

According to Capital One Shopping, people spend up to four times more using a credit card than cash. The difference adds up. 

“Using a credit card is not using your own money, even if you pay it off every month,” Kamel warned, since credit cards statistically lead to overspending.

Many experts have investigated this spending pattern to understand why it occurs. A 2021 study by Drazen Prelec of the MIT Sloan School of Management and Sachin Banker of the University of Utah found that credit cards might encourage spending by triggering the brain’s reward networks, releasing feel-good chemicals every time a purchase is made.

In addition to avoiding the feel-good influence of credit cards, Kamel also recommended the following:

• Practice delayed gratification, which means having the maturity to wait until you can afford something before buying it.
• Make online shopping less convenient by removing your saved credit card information from shopping sites and apps.
• Delete frequently used shopping apps from your phone to reduce the temptation.

Invest Consistently and Save Intentionally

Clear financial goals can help you stay focused, Kamel said. He recommended making saving a habitual part of your financial routine by setting up automatic deposits and investments.

Start by setting up automatic 401(k) or individual retirement account contributions. If you’re younger than 50, you can contribute up to $23,500 to your 401(k) and $7,000 to an IRA this year. If your employer offers a match, all the more reason to contribute consistently.

If you’re over 50, you can also take advantage of catch-up contributions — an additional $1,000 for your IRA and $7,500 for your 401(k). Your 401(k) catch-up contribution limit is even higher — $11,250 — if you’re employed and 60 to 63 years old.

Also, consider setting up automatic monthly transfers from your checking account to a savings account designated for your other savings goals. You may be less tempted to spend your savings if they aren’t mixed in with your spending money, enabling you to reach your financial goals faster.

Forming new money habits isn’t easy, so if you start making excuses as you hone these habits over the next 30 days, Kamel wants you to ask one question: “Is the future I really want worth sacrificing a little now?”

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