5 Steps to Money Mindfulness

“Very demure, very mindful” is the latest TikTok trend sweeping the internet. And while the influencer who coined the phrase was talking about dressing for work, being “mindful” can be helpful in many other aspects of our lives—including finances.

Money mindfulness means being highly aware of the way you handle your finances, knowing the decisions you make today will impact your future. It’s about setting goals and implementing a plan to achieve them.

Financial advisers say money mindfulness has a less obvious benefit, too: reducing stress. And many consumers are stressed these days. In a recent TD Bank survey of more than 1,500 American adults, 67% reported that some aspect of their finances keeps them up at night.

So, if money mindfulness is something you’d like to try, here are five steps to get started:

1. Establish goals. “Taking a step back to become aware of your own financial goals and focusing on what is most important to you is an important first step,” says Courtney Mitchell, head of Consumer Deposit and Payment Products at TD Bank.

A suggestion would be to divide your goals into three categories: short-term goals to be achieved in less than a year, medium-term goals to be accomplished in one to five years, and long-term goals for further down the line. This will help you prioritize your spending and savings.

One goal that likely should be high on your list: “Pay off high-interest debt such as credit cards and personal loans,” Mitchell advises. “This will pay off in the long run and give you more flexibility with your money.”

Goals can seem overwhelming once you put a dollar figure to them. But they can be achieved over time by making small changes to your spending habits and gradually building your savings.

2. Know where your money goes. Start by closely tracking your spending for a few months. With this exercise, you can identify expenses you could cut—such as streaming services you no longer watch—which can free up money for your goals.

Next, use this information to create a budget. A popular budget is the 50-30-20 rule, which splits your take-home pay into three categories:

• 50% is set aside for necessities like groceries, housing, insurance, transportation, and utilities.
• 30% goes toward wants, such as dining out, entertainment, or vacations.
• 20% is dedicated to savings and repaying debt.

“Online banking and mobile apps allow you to track your expenses anytime, anywhere” Mitchell says. “That way, you’ll always know how your spending is aligning—or not aligning—with your budget.”

3. Plan for emergencies. An emergency fund is essential to any financial plan. This is money you can tap instead of using credit cards if you lose your job or have other surprise bills.

“Give yourself peace of mind by preparing for unexpected changes to your income and account for any unexpected expenses,” Mitchell says. “You never know what challenges the future may bring along.”

The standard recommendation is to keep three to six months’ worth of living expenses in an easily accessible—and preferably high-yield— savings account.

That can seem like a stretch, but you don’t have to build emergency savings overnight. Saving even small sums consistently can help you build a sizable emergency fund over time.

“One of the easiest ways to start consistently saving is to automate it,” Mitchell says. “You can either set up for a direct deposit to go to a separate savings account or set up automatic transfers from your checking to a savings account based on the frequency and amount that works within your budget.”

In the realm of personal finance, few tools have stood the test of time like the savings account. If you're ready to jumpstart your savings journey, TD Bank accounts such as TD Simple Savings and TD Signature Savings provide options to help you meet your individual savings goals.

4. Practice mindful spending. It’s easy to make impulse purchases, particularly now with sales promotions during Black Friday and the holidays. But just because something is on sale doesn’t mean you're saving money, especially when you don’t need the item.

Mindful spending is being intentional about your purchases and pausing before each to ask yourself: Is the purchase something you really need or value? Would that money be better used elsewhere?

This doesn’t mean you can’t have any fun. “If you decide to splurge, give yourself time to save for that purchase or create a plan on how to pay for it,” Mitchell says.

5. Don’t leave money on the table. Make the most of benefits or perks that can put more cash in your pocket—with little or no effort on your part.

For example, if your employer matches your contributions to your 401(k) plan, make sure you contribute at least enough to get the full match. That’s free money.

Take advantage of a high-yield savings account or certificates of deposit that offer higher interest rates and allow your savings to grow faster.

And if you’re in the market for a new credit card, look for a rewards card that offers cash back. It's important to know what rewards are most valuable to you, and to know how you're likely to use the card. If you like to set it and forget it, you'll often get the most out of a flat cash back card like, which allows you to earn a percentage on every eligible purchase without any further thought. If, on the other hand, you like to be very strategic around rewards, a card like TD Cash lets you choose your top spending categories each month to maximize your rewards on specific categories like groceries and gas.

Or if your goal is to pay down card debt, consider transferring your balance to a card offering a low introductory interest rate for 15 or 18 months and then aggressively paying it off before the promotional rate expires.

Lastly, money mindfulness is a journey—one that starts with small steps. These five can put you on a path that will reap financial rewards for years to come.