These Small Money Habits Really Can Plant Roots

Hyacinth flowers growing in four stages.

The start of a new year has a way of inspiring us. We set goals, imagine fresh possibilities and picture the version of our financial lives we'd like to build.

But by February, many people feel their momentum slipping. The excitement of January fades, routines reassert themselves, and it's easy to think you've "missed your chance" to make meaningful changes.

But here's the truth: February is one of the best times to revisit your financial goals. The pressure of the new year has eased, the calendar is still wide open, and you have the space to think clearly about the habits that will support you for the long haul.

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And the habits that stick — the ones that truly move the needle — are almost always the small ones.

Why small habits work better than big resolutions

We tend to think change requires sweeping commitments. But behavioral research tells a different story. Big resolutions often collapse under their own weight, while small, repeatable actions quietly build momentum.

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The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

The key is to make the first step so small that following through feels natural:

If you want to save more, start with a modest automatic transfer.
If you want to get a better handle on spending, begin by tracking just one category.
If you want to simplify your financial life, choose one account to consolidate this month — not all of them at once.

Small steps work because they're doable. And once you succeed at something small, you're far more likely to keep going. That's how habits take root and begin to compound.

Start by simplifying your financial life

One of the most powerful small steps you can take is to reduce the complexity of your financial world.

Over time, most of us accumulate accounts without much strategy — an old 401(k) here, a couple of IRAs there, a handful of taxable accounts, a savings account opened years ago for a purpose long forgotten.

This fragmentation creates friction. It makes it harder to see your full financial picture and harder to make confident decisions.

A simple early‑year win is to consolidate where it makes sense:

Combine old IRAs into a single account when appropriate
Streamline taxable accounts across banks or investment firms
Reduce the number of savings accounts unless each has a clear purpose

The goal isn't to chase minimalism. It's to create clarity. When your financial life is easier to see, it becomes easier to manage — and easier to improve.

Simplify your spending, too

The same principle applies to your day‑to‑day spending. Many people use multiple credit cards, debit cards and payment apps without realizing how much complexity they've introduced.

When your spending is scattered, it becomes nearly impossible to understand where your money is actually going.

Choosing one primary spending card or device can be transformative. It doesn't require you to change your lifestyle — only to channel it through a single source. Suddenly, your spending becomes visible. Patterns emerge. And with visibility comes control.

Track your spending through the lens of joy

Once you have a clearer picture of your spending, the next step is reflection — not judgment. One of the most powerful questions you can ask yourself is:

"Am I spending money on the things that genuinely bring me joy?"

This is where financial planning becomes deeply personal. A budget isn't about restriction — it's about alignment. When you understand what brings you joy — people, experiences, hobbies, travel, learning, generosity — you can begin directing more of your financial resources toward those areas and away from the ones that don't matter as much.

A simple exercise can help:

List the top five things that brought you joy last year
Look at your spending summary
Compare the two

If the alignment is strong, you're on the right path. If not, you've just uncovered one of the most meaningful habit opportunities of the year.

Make one change that pays off for years

Some habits require almost no time but deliver enormous long‑term benefits. Two stand out:

Increase your workplace retirement plan contributions, even by 1%
Direct your annual raise or bonus into savings or investment accounts, allowing you to maintain last year's lifestyle while strengthening your future

These are classic "set it and forget it" habits. They don't rely on willpower. They simply require a decision — one small step — and the rewards compound quietly in the background.

It's not too late — it's exactly the right time

February often gets a bad reputation as the month when resolutions fade. But in reality, it's a perfect moment to reset. You're far enough into the year to reflect honestly, yet early enough that every positive change still has 11 months to work in your favor.

If you haven't started on your financial goals yet, you're not behind. You're right on time.

If you started but lost momentum, you're not failing. You're human — and you get to begin again.

And if you're already making progress, this is the perfect moment to reinforce what's working.

Remember, start small

Small, intentional financial habits can transform a person's long‑term trajectory. The most meaningful progress rarely comes from dramatic overhauls.

It comes from simple steps taken consistently — steps that bring clarity to your financial life, align your spending with what matters most and strengthen your future one decision at a time.

If you're revisiting your goals this February, consider it an opportunity rather than a setback. The calendar doesn't determine your success — your habits do. And it's never too late to begin building habits that support the life you want to live.

Whether you're consolidating accounts, simplifying your spending, increasing your retirement contributions or simply paying closer attention to where your money goes, each action is a building block.

Over time, those blocks create a foundation of financial confidence that can carry you through every season of life.

A strong financial future isn't built overnight, but it is built — one clear, manageable step at a time.

This article was prepared for educational purposes only. Although the information has been gathered from sources believed to be reliable, we do not guarantee its accuracy or completeness.

Disclaimer

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

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Bill Schultheis is a veteran financial adviser, investment writer and widely respected speaker who helps investors stay focused on long‑term planning over short‑term market noise. He founded Soundmark Wealth Management in 2000, growing it to more than $453 million in assets before its 2024 acquisition by Edelman Financial Engines, where he now serves on the Wealth Planning team.