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2023 Positive money habits

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The new year ahead can serve as a reset button for many areas in our lives, be that fitness, a new hobby or a career direction. As we enter 2023, your finances should be high on that list. We look at some of the ways to develop positive money habits in 2023.

Money Mindset

Before you even begin to analyse your finances, it’s important to develop a positive money mindset.

If you find that you’re easily shaken by money talk and have a fear of opening your bank statements or avoiding the subject altogether, then this is a habit you absolutely must practice.

For 2023, list a few financial goals you’d like to hit or think of something you’re hoping to buy in the new year. Create excitement around this and certainty that with your willpower and financial strategy you will hit your goal or purchase that desired item!

There are many valuable resources online to help fix your money mindset and address the impact it can have on your mental health. Here are a few to get you started:

Always budget

One of the most important habits to develop is budgeting.

This will set the baseline for everything; you will know where you stand and have more structure around your spending month-to-month. Whatever your financial objectives, budgeting will provide the foundations.

Budgeting can be a creative process and an opportunity to set yourself new challenges. There are many ways to strategise and categorise your monthly spending.

Our top recommendations are:

Automate it mate

Setting up direct debit payments or standing orders will make your financial life a lot easier.

Automating your bill payments means you won’t miss a payment and potentially incur arrears fees and penalties that just mount to increase debt. You will have peace of mind knowing all your priority payments are made and we recommend setting the due date for the same day as your payday.

Having a standing order set up to go to your savings account with the desired amount that you made in your budget will ensure that every month you are adding and building to your savings pot. Again, have this set for the same day as payday, meaning once you get that payslip through you’ve put yourself and future savings goals first.

Spend wisely

For this habit, ‘avoid’ is the keyword!

It can be hard sometimes when you’re in a shop and something catches your eye - without thinking you’re tapping your card or phone on the reader. Observe your spending habits and judge your purchases more wisely. You’ll start to notice with this new discipline how much your pennies add up.

Avoid spending on repeated purchases. If it’s not a necessity, doesn’t fit in your monthly budget and you can wait to save up for it – try and avoid it.

Put your money to work

We’re sure you’ve heard the phrase ‘make money work for you’ and it’s a lot easier than you think; you don’t have to work harder, longer hours or start a side hustle…sounds like a dream!

Storing your money in a savings account will mean your money earns interest. But shop around, don’t always go for the rate offered by your current account provider as there are often better rates available elsewhere.  

Schedule your check-ins

When you’re laying out your financial goals and strategy for 2023, make sure you schedule in time to check your progress and review your balances. Make any adjustments where necessary.

You’ll find that the fear of checking your account balances will vanish and the excitement will set in of seeing that you’re one step (or 10) closer to hitting your savings goal.


Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551