Financial Habits Everyone Should Cultivate

Establishing a good habit is like running a program in the background; once it’s set, you can rely on it without having to think much about it. Consider those habits that save you the most time and energy: dropping your keys in the same place every day so you know exactly where they are, setting a gym schedule so you don’t have to think about it, keeping a running grocery list, checking your calendar first thing every morning, etc. Cultivating good habits can automate those behaviors so they require less effort and mental energy.

Just like other areas of your life, you can set yourself up with good habits in your finances. Building financial habits is often easier than you may think; a little time and attention in the beginning can pay off with big savings over time.

Here, Coldstream advisors offer their advice about the most important financial habits everyone should cultivate.

Pay yourself first

Anthony Rue, CFP®
Wealth Manager

Pay Yourself First: Most people do this with their 401(k) but don’t do this with their brokerage account, which gives you much more flexibility. If you can make the same contribution as your 401(k) contribution, that’s great—but any amount helps.

I prefer setting up a direct deposit directly to a brokerage to keep it “out of sight, out of mind.”

Know your time horizons

David Bigelow, CFP®, MBA
Wealth Manager

“When would I potentially need these dollars?” is a fundamental question to ask when evaluating nearly all financial decisions. Making a habit of thinking in time horizons has a positive cascading effect and leads to more financial clarity and intentionality. What percent of the paycheck should stay in the checking account to pay the mortgage and regular expenses? How much should be in the emergency fund that needs to be available to pay for an unexpected expense or loss of employment? Both of these time horizons are quite different than dollars you’re saving for a down payment or home remodel in five years, a college fund for ten years down the road, or retirement assets that won’t be tapped into for decades. The constant variable in almost all money questions is time, and training yourself to think this way is a habit of the most financially organized and successful people. So, the next time you’re asking, “what’s this money going toward?” also ask the follow-up question of, “when will I need it?”

Set it and forget it

Elaina Shemeta, CFP®
Team Lead & Wealth Manager

As a wealth manager, I’ve seen that the most successful financial strategies are often the ones that require the least amount of daily effort. One habit I believe is transformative is the “Set it and Forget it” approach to savings. Between a demanding career and the beautiful chaos of raising three children, my husband and I realized that while our goals were a priority, we simply didn’t have the extra time to manually manage every transfer. We decided to automate a specific percentage of every paycheck to go directly into our investment accounts. By paying our future selves first, we removed the mental load of “deciding” to save. This ensures our family’s long-term goals grow steadily in the background, leaving us more time to focus on being present in the moment. It’s also the perfect way to leverage dollar-cost averaging: investing consistently regardless of market swings is one of the most powerful tools for long-term growth.

Freeze your credit

Glen Goland, JD, CFP®
Wealth Manager

Everyone ought to be in the habit of freezing their credit. A credit freeze prevents new credit lines from being opened under the social security number of the individual whose credit is frozen. This protective step is critical at a time when data thefts have exposed sensitive data to the world repeatedly. It is easy to freeze your credit on the websites of the major credit agencies and unfreezing things is a simple process (I unfroze my credit in minutes from the dealership floor the last time I bought a car).

Use debt strategically

Krista Charlton, CFP®
Associate Wealth Manager

Paying yourself first—by automating savings—is one of the simplest and most effective ways to build long-term financial stability. Rather than saving what’s left over at the end of the month (which is often nothing), this approach prioritizes your future by directing a portion of your income into savings and investment accounts as soon as you’re paid. Automation removes the need for ongoing decision-making and reduces the temptation to spend, creating consistency regardless of market conditions or life’s busyness. Over time, this habit not only builds wealth through compounding (which is also very powerful), but also reinforces a mindset that your financial goals are a non-negotiable expense, not an afterthought.

Using debt strategically is another cornerstone of financial literacy, as it distinguishes between borrowing that supports long-term growth and borrowing that erodes financial progress. Not all debt is inherently negative—when used thoughtfully, it can be a tool to acquire appreciating assets or create opportunities that increase earning potential. The key is understanding the cost of debt, including interest rates and repayment terms, and ensuring it aligns with a broader financial plan. By prioritizing low-interest, purpose-driven debt and avoiding high-interest consumer liabilities, individuals can leverage borrowing to their advantage while maintaining control over their financial future.

Create resources for unexpected opportunities

Mark Rosenbaum
Wealth Manager

As a young advisor, I was taught that once you begin to earn more than subsistence wages, that there are those people who spend and save whatever is left, if anything. And there are those who save first and spend the balance. The key point made in this distinction was that those in the first category always work for those in the second! 🙂

I have found that successful asset builders find ways to save money in a manner where they do not have to think about it. They set up automatic 401(k) plan contributions, which often qualify for matching dollars.  They set up payroll deduction plans that buy company stock. They set up automatic deductions from their checking accounts into their after-tax investment accounts with money being invested in mutual funds or ETFs.

All the above habits create wealth which will compound over time and allow the owners to build on more and more opportunities. The small mutual fund account allows for the purchase of investment real estate or investment in business opportunities and more.

Savings do not always have to do with immediate goals; sometimes it is creating resources for unexpected opportunities that you can then actualize. Set up your own business, seize an unexpected opportunity, grace someone else with unexpected and needed support.  Your habits create great future options.

Make sure your spouse has access 

Matt Sampson, CFP®, CEPA®
Wealth Manager

If one spouse is less engaged in the management of the finances, ensure they have access to all login credentials, professional contacts, and that they know where to access an updated net worth statement/financial profile.

Automate your savings

Reem Rizk-Hunter, CFP®
Associate Wealth Manager

Pay yourself first. For those in the accumulation phase, automating savings is one of the most effective ways to make that happen. By setting up automatic contributions to retirement accounts, investment accounts, or savings goals as soon as income is received, you remove the temptation to spend what you intended to save.

Automation turns saving from a decision you have to make each month into a system that works in the background. Over time, these consistent contributions can compound into meaningful progress toward long-term goals. The key is to treat saving like any other essential expense—prioritize it first, automate it, and let time and discipline do the heavy lifting.

Consistency over intensity

Roger Reynolds
Co-Founder & Team Lead

One of the most powerful financial habits I’ve observed over 35 years is simple: consistency over intensity. The clients who build lasting wealth aren’t the ones who try to time markets or make bold, one-off decisions—they’re the ones who consistently save, invest, and revisit their plan through all market environments.

Good financial outcomes are typically the result of steady behaviors repeated over time, not perfect decisions made at the right moment. Whether markets are up or down, staying committed to a disciplined process is what ultimately drives success.

Consistency and compounding

Ryland Moore
Business Development Officer & Wealth Manager

I find some of the greatest financial habits are taught to us as children. I have opened Custodial Roth IRAs for my children, and even though they don’t have a lot of income yet from their work, we make sure to contribute a meaningful amount of everything they earn into the account. The power of consistently contributing to the account combined with the power of compounding is a wonderful financial habit to teach early on.

Make sure you are getting your full match

Vonie Bright, CFP®
Wealth Manager

Pay yourself first.  If your company has a 401(k) plan, contribute at least enough to get your company’s full match.  This is free money you are leaving on the table if you don’t contribute.  If you have young adult children, encourage them to do the same.  Not only will they get matching funds from their company, but the compounding returns will have a huge impact for them financially over time.

*This article is for informational purposes only and does not constitute investment, financial, tax, or legal advice. The views expressed are general in nature and may not be appropriate for all individuals. Financial habits and strategies discussed do not guarantee any particular outcome.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP^®. CERTIFIED FINANCIAL PLANNER™ and CFP^® in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. The Certified Exit Planning Advisor (CEPA^®) credential is issued by the Exit Planning Institute.