Financial hygiene: how to take control of your money in one hour and stop wasting it

In times of economic instability and rising prices, the ability to manage one's own finances is becoming increasingly important. Most people feel stressed because money "slips through their fingers."

Kateryna Klyimova, a financier and founder of the Fin Easy agency, explains: LIGA.netHow to take control of your finances in an hour, what simple habits help you stay stable in any crisis, and what imperceptibly "eats up" your budget every day. We share real life hacks and proven methods. More money management secrets – by subscription.

Common financial mistakes we make every day

Among the most common behavioral mistakes that prevent people from managing their own finances, financial expert Kateryna Klyimova primarily names the lack of accounting for income and expenses.

The first and most basic mistake is that people simply don't manage their finances. That is, they don't record how much they earn and where they spend it.

According to the financial expert, income usually has 1-3 sources, while expenses are much more diverse. This is especially true for cash. It is important not only to record expenses but also to analyze them at least once a month. However, many people are actually afraid to see the real picture. "I had a client," Klimova says, "who didn't want to count his expenses because he was afraid to find out how much he spent on coffee and restaurants. It turned out that coffee was not a problem, but restaurants took up a significant part of the budget. He accepted this and took it under control."

"Banking apps are partially helpful, but their categorization is often inaccurate. For example, a card-to-card transfer doesn't show what's behind it," says the expert.

Accounting doesn't mean total savings; it's more about conscious spending: when you see the numbers, you can decide what is valuable to you and what you can easily give up without losing your quality of life.

The second common mistake is the lack of savings and a financial reserve.

"Even when incomes rise, expenses often rise along with them. People don't save the difference, but start spending more. This creates a life without a financial cushion and makes a person vulnerable to crises," Klyimova explains.

Separately, the expert draws attention to the popularity of pseudo-financial courses that promise money without real action – through meditation or "expanding financial flows."

"In Ukraine, such practices are almost unregulated, so people often just lose money. Instead, keeping track of expenses is free and much more effective than any promises of 'financial prosperity'," the financier concludes.

What most often "eats up" the budget

Daily little things – coffee, sweets, snacks.

"The problem is not with one cup of coffee, but with the third, fourth, or fifth one of the day. If you calculate such expenses for a month, they create a significant burden on the budget," Klimova notes.

Another important category of expenses is food away from home.That's why the financial expert advises separating expenses.

"Household products are one thing, and food away from home is another. The second category is usually much more expensive, and then it's easier to decide whether to accept these expenses as part of your lifestyle or to optimize them," she explains.

The expert also advises paying attention to automatic subscriptions and recurring payments.

"Individual write-offs may be almost imperceptible, but over a month they can 'eat up' significant amounts," concludes Kateryna Klyimova.

Why is it difficult for people to manage their subscriptions?

"There is no 'magic pill'," the financier emphasizes. "Either you control your finances, or you live at random."

She gives an example from her own experience: "For a long time, I had an expense category called 'I don't remember.' This was cash that I spent and simply couldn't recall what it was for. When I got myself into the habit of recording expenses at the moment or immediately after, it turned out to be about 15,000 hryvnias a month. That's when I figured out what those expenses were."

According to Klymova, the situation with subscriptions is more complicated. The subscription model is designed to make it difficult for a person to cancel the service or even realize that a payment has been made.

"Three to five dollars may seem like a small amount, but several subscriptions add up to a significant sum," explains the financial expert.

Technical write-off mechanisms create additional complexity: the subscription is actually tied not to the card, but to the account, so payments can continue even after it is reissued or blocked.

"Subscriptions are designed to be inconspicuous. Without analysis, they quickly turn into a 'black hole' for the budget," the expert concludes.

What simple financial actions can you take in one hour to improve your control over your money?

Financier Kateryna Klyimova notes that it is impossible to solve all financial problems in one hour, but it is quite realistic to take a few simple steps that will have a tangible effect.

"I always advise starting with two specific actions. They are simple, but very effective," she says.

Step one: start saving now.

"If your salary is deposited into your card, you can set up an automatic transfer of a portion of your income to a separate savings account in your banking app. If you're scared, start with 5%. If you're comfortable, start with 10%," Klyimova explains.

Ideally, she notes, up to 20% of income should go to savings, but it's important to start with a comfortable amount.

"This can be done not in an hour, but in 10 minutes. If the income is in cash, it is enough to get a separate envelope or box and immediately put a part of the income there," the financier adds.

Step two is to create a basic budget of expenses.

According to Klimova, it is realistic to form a simple picture of one's own finances in one hour.

"You need to list the main expense categories and approximate amounts – based on your gut feeling. It's important to immediately separate groceries for home from food away from home: deliveries, cafes, restaurants. This is one of the most expensive categories," she notes.

The expert advises including transportation, fuel, childcare expenses, recreation, "pleasure" purchases, medicine, and household odds and ends in the basic budget. This approach allows you to quickly see if expenses fit within your income.

Step three is to keep track of your expenses for one month and compare the actual figures with what you wrote down for that hour.

For those who already manage a budget and have savings, the financial expert suggests another option to use this hour productively: auditing subscriptions.

"In an hour, you can go through all your services, check which ones are monthly and which are annual, and unsubscribe from those you don't use. In practice, this often saves you between $100 and $200," Kateryna Klyimova concludes.

What habits help maintain financial hygiene in the long term?

Financial hygiene is not a one-time action, but a set of simple rules that only work if they are followed regularly, says Kateryna Klyimova.

Rule #1: "Pay yourself first."

According to the expert, this is a key habit that accounts for half of financial success.

"As soon as you receive income or a salary, you immediately set aside a predetermined portion – 5%, 10%, or 20%. Not on the principle of 'I'll save if there's anything left,' but on the principle of 'I pay myself first,'" Klyimova explains.

She advises doing this systematically – with every income, regardless of whether it's one payment a month or two. The process can be automated through a banking app, or you can set money aside in a separate account or in an envelope.

"Even if you don't keep track of your finances yet, start with this rule. In six months or a year, you'll be pleasantly surprised by the result," the financier notes.

Rule #2. Regularly track and analyze expenses.

Another important habit is to record your expenses and summarize them once a month.

According to her, such an analysis helps to understand in advance where costs can be cut and where they cannot. This is especially important in crisis situations or when income decreases.

"In that case, you already know the minimum amount you need to live on, and you can adapt to changes more quickly," the expert explains.

Rule #3. Distinguish between needs and wants.

Before every purchase, the financial expert advises asking yourself a simple question: is it a real necessity, or just a desire?

"This doesn't mean completely giving up pleasures. It's about priorities. With a limited budget, basic needs must be met first – housing, utility costs, food. And only then – restaurants, clothes, and 'joy' purchases," Klimova notes.

According to the financier, following these three rules ensures up to 80% of success in maintaining financial hygiene.

"We can also talk about the responsible use of credit or the rule of 'spending less than you earn.' But if you systematically pay yourself first, these principles are essentially followed automatically," Kateryna Klyimova concludes.