The power of habit: small changes lead to big savings

Curated by Emirates NBD

2 min read

24/06/2025

49,129

Life can get expensive quickly, especially when you have a family. Between mortgage payments, childcare, healthcare, and other necessities, it's easy for your expenses to pile up faster than your paychecks come in. This can lead to financial stress and hardship if you're not careful.

Budget with intention

Budgeting is one of the most fundamental ways to get your finances on track, yet many people find the idea of restricting their spending unappealing. That's why it's important to budget with intention rather than deprivation. A budget shouldn't make you feel trapped – it should empower you and give you more control over where your money goes.

You could start by writing down all your fixed monthly expenses like housing, debt payments, childcare and so on. Then, make a list of needs like rent, groceries, utilities, transport etc. Finally, list your wants – things like dining out, entertainment and vacations. Studies show that the more granular you get with budget categories, the easier it is to curb overspending.

Once your budget is set, pick one flexible "want" category to cut back on, like dining out. Slowly decrease what you allocate to that category each month. Apply those savings towards an important financial goal like an emergency fund or college savings. You may find that over time, cutting back on dining out or takeout meals saves you thousands.

Automate your finances

Setting up automatic transfers and payments can help lock in positive financial habits. Here are some powerful set-and-forget automations to try:

Auto-deposit a portion of every paycheck into a separate high-yield savings account. This makes saving effortless while earning more interest.
Set up automatic payments for fixed monthly expenses. Not only does this save time, but you avoid late fees caused by forgetting a due date.

Enroll in an automatic savings plan from each paycheck, even if it's just 3-5% of your income. Thanks to the power of compound growth, that small change today could mean tens of thousands more in retirement.

Pay yourself first

Whenever you come into unexpected money, whether it's a bonus or gift, immediately put a percentage of that windfall into your emergency fund or retirement account, then spend what's left over guilt-free.

This ensures extra funds get put to good use rather than being spent on impulse purchases you'll barely remember later.

Teach your kids good money habits

Children often mimic what they observe at home, so always demonstrate positive financial habits. Talk openly about making trade-offs to save for big goals. Show them your budget and involve older kids in financial decisions. Give them an allowance and encourage them to save a portion.

By learning money management skills early on, your children can avoid some of the challenges you may have faced. Help them achieve financial independence and build wealth of their own.

Click here to learn about ways to tackle financial awareness in your household.

Small changes, big results

Reigning in expenses doesn't require flipping your lifestyle upside down. In fact, research shows that drastic changes rarely stick long-term compared to incremental habit shifts.

Try to focus first on one or two small money habit tweaks, then gradually build positive momentum over time. Saving and investing spare change that you would otherwise mindlessly spend can snowball into substantial amounts.

While keeping up with these daily money habits may feel tedious at first, think of it as planting seeds that can potentially grow into a fruitful financial future for your family. Consistently tending to those financial seeds allows the power of compounding to work its magic. Before you know it, those small changes can yield an abundant money harvest.

Disclaimer

The views shared in this podcast are for general information and educational purposes only and do not constitute financial, investment, legal or tax advice. Listeners should seek independent advice from a qualified professional before making any financial decisions. Emirates NBD Bank PJSC accepts no liability for any loss arising from reliance on the content discussed.