Top 15 'Money-as-Ally' Financial Habits to follow for beginners to stop fighting with their finances - Goh Ling Yong
Does the thought of checking your bank account fill you with a sense of dread? For many of us, our relationship with money feels like a constant battle. It’s a source of stress, anxiety, and guilt—a formidable opponent we’re always trying to outsmart or wrestle into submission. We fight to make enough, we struggle to keep it, and we worry endlessly about losing it. This adversarial relationship leaves us feeling powerless and stuck in a cycle of financial frustration.
But what if you could change the narrative? What if money wasn't the enemy, but your most powerful and reliable ally? Imagine your finances as a partner, working alongside you to build the life you truly want—a life of security, freedom, and choice. This isn't just a hopeful fantasy; it's a strategic shift in mindset that can revolutionize your financial well-being. By treating money as a tool and a resource, you move from a place of conflict to one of collaboration.
This transformation starts with small, consistent actions. It's about building a foundation of positive habits that realign your relationship with your finances. Here on the Goh Ling Yong blog, we believe that financial empowerment is accessible to everyone. Forget the complex jargon and overwhelming spreadsheets. We’ve compiled 15 simple, powerful 'Money-as-Ally' habits that will help you stop fighting with your finances and start building a future of abundance, one step at a time.
1. Give Every Dollar a Job
Before your paycheck even hits your account, it feels like it's already spent. This is a common feeling when your money lacks direction. The "Give Every Dollar a Job" habit, often called zero-based budgeting, is about taking control and becoming the boss of your money. Instead of just tracking where your money went, you proactively tell it where to go.
Think of yourself as the manager of a team, and every dollar is an employee. Your job is to assign each one a specific task: some dollars go to rent, others to groceries, some to paying off debt, and—crucially—some to saving and investing for your future self. This ensures that no money is left idle or gets spent on impulse without your permission. It eliminates the "where did it all go?" mystery at the end of the month.
How to do it: At the start of each month (or pay period), list your total income. Then, list all your expenses, savings goals, and debt payments. Assign your income to these categories until your income minus your outgoings equals zero. You can use a simple spreadsheet, a notebook, or apps like YNAB (You Need A Budget) to make this process seamless.
2. Automate Your Wealth Building
The single most effective way to build wealth is to make it automatic. Relying on willpower to save what's "left over" at the end of the month is a recipe for disappointment. Life happens, expenses pop up, and good intentions fade. By automating your savings and investments, you treat your financial goals with the same importance as your rent or utility bills.
This is the modern version of "paying yourself first." You decide on a specific amount to save or invest, and you set up an automatic transfer from your checking account to your savings or investment account. This transfer should happen right after you get paid, before you have a chance to spend it. Your future self is your most important creditor—pay them first, automatically.
How to do it: Log into your online banking portal. Set up a recurring transfer from your primary checking account to a high-yield savings account for a specific amount on the 1st and 15th of the month (or whatever day you get paid). Do the same for your investment account. Start small if you need to—even $50 a month builds the habit and makes a difference over time.
3. Have a Weekly 'Money Date'
The idea of reviewing your finances can be intimidating, conjuring images of stern lectures and complicated spreadsheets. A 'Money Date' reframes this task into something positive and empowering. It's a short, regular, and non-judgmental check-in with your financial ally. This isn't an audit; it's a calm, 15-20 minute meeting to see how things are going.
During your Money Date, you can review your spending from the past week, check on your savings goals, and make any small adjustments needed for the week ahead. Did you overspend on dining out? No big deal, just be more mindful next week. Did you come in under budget on groceries? Awesome! Celebrate that small win. This regular check-in keeps you connected to your goals and prevents small issues from becoming major problems.
How to do it: Schedule a recurring 20-minute appointment in your calendar—say, every Sunday morning. Grab a cup of coffee or tea, put on some relaxing music, and open your budgeting app or spreadsheet. The goal is to make this a calm, routine activity, not a stressful chore.
4. Use a 'Cooling-Off' Period for Impulse Buys
Impulse spending is one of the biggest enemies of a healthy budget. Clever marketing, social media pressure, and the instant gratification of online shopping can easily derail your financial plans. A 'cooling-off' period is a simple but incredibly effective defense mechanism. It creates a deliberate pause between the impulse to buy and the act of purchasing.
The rule is simple: for any non-essential purchase over a certain amount (you decide the threshold, e.g., $50), you must wait a set period—like 24 hours, 48 hours, or even a week—before buying it. More often than not, you'll find that the urgent "need" for the item fades. This habit isn't about deprivation; it's about ensuring your spending is intentional and aligned with your true values.
How to do it: Create a "Wish List" in a notebook or a notes app on your phone. When you feel the urge to buy something non-essential, add it to the list with the date. Revisit the list after your cooling-off period has passed. If you still genuinely want and can afford it, go ahead. You'll be surprised how many items you end up deleting.
5. Track Your Net Worth, Not Just Your Spending
While tracking your spending is important for day-to-day management, it only tells half the story. It focuses on what’s leaving your accounts. Tracking your net worth, on the other hand, gives you a bird's-eye view of your entire financial health. It's a single, powerful number that tells you if you're making overall progress.
Your net worth is the value of everything you own (your assets) minus everything you owe (your liabilities). Watching this number grow over time is incredibly motivating. It shifts your focus from scarcity (cutting costs) to abundance (building assets). Even when you have a high-spending month, your net worth might still increase thanks to investment growth or debt reduction, which helps you see the bigger picture.
How to do it: Once a month, create a simple two-column list. On one side, list your assets (cash in savings/checking, investment account balances, value of your car or home). On the other, list your liabilities (credit card debt, student loans, mortgage). Subtract liabilities from assets. That's your net worth. Track it month-over-month to see your progress.
6. Create 'Sinking Funds' for Big Expenses
Have you ever been blindsided by a large, predictable expense like annual car insurance, holiday gifts, or a much-needed vacation? These costs often force us into debt or drain our emergency fund. A 'sinking fund' is your secret weapon against this cycle. It's a dedicated savings pot for a specific, upcoming expense.
Instead of scrambling to find $1,200 for your car insurance renewal, you "sink" $100 a month into a separate savings account for it. When the bill arrives, the money is sitting there, waiting. This transforms a financial emergency into a planned expense. You can have multiple sinking funds for different goals: new tires, a new laptop, a wedding gift, etc. This habit makes you proactive rather than reactive.
How to do it: Open a high-yield savings account and use its features to create different "pots" or "buckets" for each goal. Calculate the total cost of the future expense and divide it by the number of months you have to save. Then, set up an automatic monthly transfer for that amount.
7. Reframe Debt as a Solvable Problem
Debt can feel like a heavy weight, shrouded in shame and judgment. This emotional burden often prevents us from tackling it effectively. The 'Money-as-Ally' approach requires you to reframe debt. It is not a moral failing or a reflection of your worth. It is simply a mathematical problem with a clear, strategic solution.
By removing the emotion, you can look at the numbers objectively and create a plan. Two popular strategies are the Snowball Method (paying off the smallest debts first for quick, motivational wins) and the Avalanche Method (paying off the highest-interest debts first to save the most money). Neither is "better" than the other; the best method is the one you will actually stick with.
How to do it: List all your debts, including the total balance, minimum payment, and interest rate. Choose your strategy (Snowball or Avalanche). Funnel all your extra cash toward that one target debt while making minimum payments on the others. Once it's paid off, roll that entire payment amount onto the next debt in line.
8. Negotiate One Bill Every Quarter
Many of our recurring bills—like for our phone, internet, insurance, or streaming services—are not set in stone. Companies often have retention offers or newer, cheaper plans available, but they rarely offer them unless you ask. Making a habit of questioning and negotiating one bill every few months can unlock hundreds, if not thousands, of dollars in annual savings.
This isn't about being confrontational. It's about being an informed consumer. A polite 15-minute phone call to ask if you're on the best possible rate or if there are any available promotions can lead to significant savings. The worst they can say is no, but the potential upside is huge.
How to do it: Set a calendar reminder once per quarter. Pick one provider (e.g., your internet provider). Do a quick search to see what new customers are being offered. Call customer service, be polite, and say something like, "I'm reviewing my budget and noticed my bill is quite high. I'd like to stay with you, but I see [competitor] is offering a lower rate. Is there anything you can do to help me lower my monthly bill?"
9. Invest In Your 'Earning Ability'
Your single greatest financial asset is not your bank account or your investments; it's your ability to earn an income. Nurturing this asset is one of the highest-return activities you can undertake. This means investing in your skills, knowledge, and network to increase your value in the marketplace.
This isn't an "expense"; it's an investment in yourself. This could mean taking an online course to learn a new software, attending a weekend workshop to get a certification, reading books about your industry, or even hiring a coach. As financial expert Goh Ling Yong often emphasizes, habits that increase your earning potential create a powerful ripple effect across your entire financial life.
How to do it: Identify one skill that, if improved, could lead to a raise or a better job. Research affordable ways to develop it—free YouTube tutorials, a low-cost Udemy course, or books from the library are great starting points. Dedicate a few hours each week to this self-investment.
10. Celebrate Your Financial Wins
If your financial journey is all about restriction and sacrifice, you're unlikely to stick with it. It's crucial to build in positive reinforcement. Celebrating your financial wins—no matter how small—creates a positive feedback loop that makes you want to keep going.
Did you stick to your budget for a whole week? Amazing! Did you pay off a credit card? That's a huge milestone! Did you make your first automated investment? Fantastic! Acknowledging and celebrating these moments helps rewire your brain to associate good financial habits with positive feelings.
How to do it: The celebration doesn't have to be expensive or counterproductive. It could be enjoying a fancy coffee, taking an afternoon off to read in the park, or having a nice meal at home. The key is to consciously acknowledge your achievement and feel proud of your progress.
11. Understand Your 'Money Story'
We all have a "money story"—a collection of unconscious beliefs and attitudes about money that we learned from our family, our culture, and our life experiences. These stories dictate our financial behaviors without us even realizing it. Perhaps you grew up hearing that "money is the root of all evil," leading you to subconsciously sabotage your financial success. Or maybe money was never discussed, so you feel anxious and ill-equipped to manage it.
Becoming your money's ally means you first have to understand this backstory. By bringing these beliefs into the light, you can question them and decide if they still serve you. You have the power to write a new, more empowering money story for yourself.
How to do it: Grab a journal and reflect on these questions: What is your earliest memory of money? What did your parents teach you about it, both directly and indirectly? What are the top three words you associate with money? There are no right or wrong answers—the goal is simply to build self-awareness.
12. Build a 'Freedom Fund'
Everyone talks about an emergency fund (which is essential!), but a 'Freedom Fund' serves a different, more empowering purpose. This is a pot of money that gives you options and agency. It's enough cash to allow you to walk away from a situation that is no longer serving you—be it a toxic job, a bad living situation, or a project that's draining your soul.
Knowing you have this cushion reduces feelings of being trapped and allows you to make decisions based on your well-being, not just financial desperation. It could be one month's expenses, or it could be three. The amount isn't as important as the psychological freedom it provides. It's the ultimate 'money-as-ally' tool, giving you the power to say "no."
How to do it: Start a separate savings account labeled "Freedom Fund." Begin funding it after you have at least a small emergency fund ($1,000) in place. Even adding $25 a week will help it grow, and with it, your sense of security and control.
13. Use the 'Envelope System' (Digitally or Physically)
For categories where you tend to overspend, like groceries, dining out, or entertainment, the envelope system is a game-changer. It provides clear, tangible boundaries. The traditional method involves withdrawing cash and dividing it into labeled physical envelopes. Once an envelope is empty, you're done spending in that category until the next month.
In our increasingly cashless world, this system works just as well digitally. Many budgeting apps allow you to create "digital envelopes" that track your spending in real-time. When you're nearing your limit in a category, the app will notify you. This provides the same discipline as the cash method but with the convenience of using your card.
How to do it: Identify 2-3 spending categories you struggle with. If you're using cash, withdraw the budgeted amount and put it in labeled envelopes. If you're going digital, use an app like Goodbudget or the envelope features within YNAB to set your limits.
14. Learn the Language of Investing (Just the Basics)
The world of investing can seem intimidating, filled with complex charts and impenetrable jargon. But you don't need to be a Wall Street expert to make your money work for you. The first step is to simply demystify the basics. Making investing your ally means understanding its language.
Commit to learning a few fundamental concepts. What is an index fund? What is an ETF? What does "diversification" mean? Understanding these core ideas will give you the confidence to start. You'll realize that a sound, long-term investment strategy is often far simpler than you think—it's usually based on consistency and patience, not trying to outsmart the market.
How to do it: Don't try to learn everything at once. Dedicate 20 minutes a week to reading a financial blog, listening to a beginner-friendly podcast (like 'Planet Money' or 'The Ramsey Show'), or watching explainer videos. Focus on understanding one new concept at a time.
15. Practice Financial Gratitude
Our financial mindset is often dominated by what we lack. We focus on the debt we still have, the savings goal we haven't reached, or the things we can't afford. Practicing financial gratitude flips this script. It's about consciously appreciating what your money—no matter how much or how little—already does for you.
Your money provides you with a roof over your head, food to eat, electricity to power your devices, and the ability to connect with loved ones. Acknowledging this shifts your perspective from scarcity to abundance. A grateful mindset reduces financial anxiety and fosters a healthier, more positive relationship with your money, making you a better steward of the resources you have.
How to do it: At the end of each day, take a moment to identify three specific things your money provided for you. It could be the warm coffee you enjoyed in the morning, the internet that allowed you to work, or the comfortable bed you're about to sleep in. This simple habit cultivates contentment and appreciation.
Your Financial Ally Awaits
Shifting your relationship with money from a battle to an alliance won't happen overnight. It's a journey built on these small, consistent habits. It's about choosing collaboration over conflict, intention over impulse, and clarity over confusion. By implementing even a few of these practices, you will begin to feel a profound shift—from anxiety to confidence, from powerlessness to control.
Your money wants to work for you. It wants to help you build a life of security, achieve your dreams, and provide for the people you love. All you have to do is give it the direction and respect it deserves. Start today. Choose one habit from this list and commit to it for the next month. You have the power to build a strong, lasting, and prosperous partnership with your finances.
Which of these habits are you going to start this week? Share your first step in the comments below! Let's build our financial futures together.
About the Author
Goh Ling Yong is a content creator and digital strategist sharing insights across various topics. Connect and follow for more content:
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