By James Carter February 22, 2025, 12:00 pm
Money isn’t everything, but let’s be real—it plays a huge role in our lives.
And if there’s one thing I’ve learned from studying mindfulness and personal growth, it’s that small, intentional actions can lead to big results over time.
That’s especially true when it comes to finances. The most successful people don’t wait until it’s too late to get their money in order. They make smart moves early on—before 40—to set themselves up for long-term security and freedom.
I’ve looked into what financial experts recommend, and the patterns are clear. There are key habits and decisions that make all the difference.
So if you want to build wealth while staying mindful of your life’s bigger picture, here are nine smart money moves to start making now.
1) Avoid lifestyle inflation
I learned this lesson the hard way.
When I got my first real paycheck, I felt like I had made it. So, naturally, I upgraded everything—fancier meals, nicer clothes, a better apartment.
It felt great at first, but before long, I realized something: No matter how much I earned, there was never much left over.
That’s lifestyle inflation in action. As your income increases, so do your expenses—unless you make a conscious effort to avoid it.
Successful people understand this. Instead of spending more just because they can, they keep their living costs reasonable and put the extra money toward savings, investments, or experiences that truly add value to their lives.
That doesn’t mean depriving yourself—it just means being mindful of what actually brings you happiness, rather than chasing status symbols or short-term pleasures.
As psychologist Daniel Kahneman put it: “Money does not buy you happiness, but lack of money certainly buys you misery.”
2) Invest in financial education
Most people spend years in school learning about history, math, and science—but almost no time learning how to manage money.
Successful people know that financial literacy is just as important as any other skill, and they make a point to educate themselves.
Reading books, listening to podcasts, and even seeking out mentors can make a huge difference in how you handle money. The more you understand about saving, investing, and growing wealth, the better decisions you’ll make.
When you become more conscious of your money habits, you can break free from impulsive spending and start making choices that align with your long-term goals.
At the end of the day, financial success isn’t about how much you earn—it’s about how well you manage what you have.
As Warren Buffett wisely said: “The best investment you can make is in yourself.”
3) Automate good financial habits
When it comes to money, willpower is overrated.
Research in behavioral psychology shows that humans naturally lean toward the path of least resistance—meaning if something requires too much effort, we’re less likely to follow through.
That’s why successful people don’t rely on self-discipline alone; they automate their financial habits.
Setting up automatic transfers for savings, investments, and even bill payments removes the need for decision-making. When a portion of your paycheck is automatically sent to a high-yield savings account or a retirement fund, you don’t have to think about it—it just happens.
This strategy, known as “paying yourself first”, ensures that your financial goals are met without relying on motivation or memory.
Psychologists call this choice architecture—designing your environment in a way that nudges you toward better decisions. By making smart money moves automatic, you avoid procrastination and prevent yourself from spending impulsively.
As behavioral economist Richard Thaler said: “If you want to encourage someone to do something, make it easy.”
5) Don’t focus on saving—focus on earning
Most financial advice tells you to cut back—skip the lattes, cook at home, live frugally.
And while saving is important, successful people know that there’s a limit to how much you can cut—but no limit to how much you can earn.
Instead of obsessing over every dollar spent, they focus on increasing their income. That could mean negotiating a higher salary, developing new skills, starting a side hustle, or investing in assets that generate passive income.
The goal isn’t just to save more—it’s to grow your wealth over time.
This shift in mindset is crucial. While cutting expenses can help in the short term, long-term financial success comes from expanding your earning potential.
After all, it’s easier to build wealth when there’s more money coming in.
As entrepreneur Naval Ravikant put it: “You’re not going to get rich renting out your time. You must own equity—a piece of a business—to gain your financial freedom.”
6) Embrace calculated risks
Playing it safe might feel comfortable, but when it comes to building wealth, avoiding risk entirely can hold you back.
Successful people understand that financial growth often requires stepping outside of their comfort zone—but they do it strategically.
This doesn’t mean gambling your savings on the latest get-rich-quick scheme.
Instead, it’s about taking calculated risks—investing in assets like stocks or real estate, starting a business, or even taking career opportunities that offer long-term rewards.
The key is to do your research, weigh the potential downsides, and take action with confidence.
Psychologists refer to this as the risk-reward tradeoff.
Our brains are wired to fear loss more than we value gains (a concept known as loss aversion), which is why many people shy away from investing or making bold financial moves.
But those who succeed train themselves to see risk as an opportunity rather than a threat.
7) Set clear financial goals
For years, I told myself I wanted to “be financially secure”—but what did that actually mean?
Without a clear definition, my progress was slow, and I found myself making random financial decisions without a real plan.
Successful people don’t just hope to have more money someday—they set specific, measurable goals. Instead of vague ideas like “save more” or “invest wisely,” they define exactly how much they want to save, by when, and for what purpose.
Psychologists call this the goal-setting effect. Research shows that when we create clear, actionable targets, we’re far more likely to follow through. Writing down financial goals and breaking them into small, achievable steps makes them feel real and within reach.
Whether it’s saving for a home, reaching a certain net worth, or building a passive income stream, having a concrete target provides direction—and the motivation to stay on track.
As psychologist Edwin Locke put it: “A goal properly set is halfway reached.”
8) Surround yourself with financially smart people
It’s often said that we become the average of the five people we spend the most time with—and this applies to finances, too.
If you’re constantly around people who overspend, live paycheck to paycheck, or avoid talking about money altogether, it’s easy to fall into the same habits.
Successful people are intentional about who they learn from and spend time with.
They seek out mentors, join communities of like-minded individuals, and engage in conversations that challenge them to think bigger about their financial future.
This isn’t about cutting people out of your life—it’s about expanding your circle to include those who inspire and educate you.
Whether it’s through networking events, mastermind groups, or simply following financially savvy individuals online, surrounding yourself with the right influences can change the way you approach money.
As psychologist Jim Rohn famously said: “You are the average of the five people you spend the most time with.”
Bottom line: Small choices, big impact
Financial success isn’t built overnight—it’s shaped by the small, consistent choices we make every day. The habits you develop before 40 can set the foundation for decades to come, determining whether you experience financial freedom or constant stress.
But here’s the thing: it’s not just about money. It’s about how financial security allows you to live with intention, focus on what truly matters, and free yourself from unnecessary worry.
At the end of the day, wealth isn’t just about numbers in a bank account. It’s about creating a life where you have the freedom to pursue what brings you fulfillment.
And that begins with the choices you make today.
Story from Hackspirit.com
James Carter
James Carter doesn’t believe in quick fixes—real growth takes patience, self-awareness, and a willingness to challenge your own thinking. His writing dives into mindfulness, relationships, and psychology, exploring what it really means to live with intention. Instead of overcomplicating things, he focuses on insights that actually help people navigate life with more clarity and balance. His perspective is shaped by both Eastern philosophy and modern psychology, bridging timeless wisdom with everyday challenges.
