I used to think saving and investing were too hard or only for people who had lots of extra money. But then I learned some simple habits that really changed the way I manage my finances. Below are five tips that helped me feel more confident with my money — and the last one is a game-changer when it comes to treating yourself!

I used to think saving and investing were too hard or only for people who had lots of extra money. But over the years/through trial and error, I learned some simple habits that really changed the way I manage my finances. Below are five tips that have helped me feel more confident with my money — and the last one is a game-changer when it comes to treating yourself!

1. Track Your Spending

When I started writing down every purchase, I got a much clearer picture of where my money was going. I used to wonder, “Where did all my money go?” Tracking my spending forced me to see how much I spent on things like coffee, snacks or online shopping. Once I knew the exact numbers, I could decide if they matched my real priorities.

Pro Tip: Use a simple spreadsheet or a free app on your phone. The goal is to understand where your money goes each month so you can make decisions aligned to your needs and goals.

2. Build an Emergency Fund

After my first car broke down on my way to work one morning, I learned that life can surprise you with big expenses, and having a small cushion can save you from going into debt. Luckily, I was able to cover the new spark plug — but I did have to forego a few nights out with friends, and I also realized how fragile financial health can be. If I’d had an emergency fund, I wouldn’t have had to sacrifice even just a bit of fun. An emergency fund also gives you peace of mind because you can enjoy yourself and know you have money set aside for the unexpected.

Quick Start: Even if you can only save $10 or $20 each week, it adds up. Put this money into a separate savings account, so you won’t be tempted to use it for daily expenses.

3. Pay Down Debt

Everyone knows that high-interest debt, like credit cards and student loans, can quickly drain your finances; the question is how to pay it off. Every month you carry a balance, you pay extra money in interest. One approach is the snowball method: pay off ay off the smallest balance first, then move on to the next smallest. And for people who prefer a “rip-the-band-aid-off” approach, pay off the debt with the highest interest rate first to reduce the total amount of interest you pay.

Quick Start: Figure out how much of your monthly budget you can allocate to paying off debts. Then decide which loan you can make the biggest dent in first. 

4. Invest in a Robo-Advisor

Investing can help you grow your money over time, but not everyone has the time or confidence to pick stocks or funds. (You can check out my journey from hesitant to confident investor here) That’s why a halal robo-advisor like Wasat can be helpful. It automatically invests your money in ways that follow Islamic principles. You don’t have to worry about whether certain companies or sectors are compliant, because Wasat handles that for you.

Why It’s Great: A robo-advisor makes investing simple and stress-free, so you can start growing your money without needing to be a finance expert.

5. Match Every Treat with an Equal Investment

I picked up this habit from a friend, and it  completely changed my view on “splurges.” Now, whenever I buy something fun — like a fancy coffee, new makeup, or the latest tech gadget — I invest the same amount of money (and now we can do that with Wasat).

How It Works:

Mindful Spending: If you really want a $20 coffee order, set aside another $20 and invest it. This makes you think twice before spending.

Long-Term Benefits: While you enjoy your treat, you’re also building your future. It’s a win-win situation.

These five habits helped me spend with purpose, save for emergencies, and invest for the future — all without feeling like I had to give up everything I enjoy. The key is taking small steps you can stick to. If you’re looking for a simple way to invest in line with your values, consider trying Wasat. It removes a lot of stress by automatically managing your money according to halal standards.