Not all of us can handle money wisely. Dealing and controlling your money is hard. It can be overwhelming and sometimes frustrating. But what if you’re doing better than you think? What if you’re actually better at managing your finances than the average adults in the world?
Here are a 10 signs that you are good with money:
1. You have a budget
Allocating time once a month to work on your budget is an indication of a good finance manager. Having a budget allows you to get in control over your finances. You keep track of how much is coming in and how much is coming out. You can tell your money where you want it to go and most importantly, you can allocate a fixed amount for your savings.
2. You have a steady flow of income
If you are working that 8-5 job and you get a paycheck every month, then you are on the right road. Generating a regular paycheck may it be from both your day job and a side job is important to secure your finances.
Knowing how much income is coming in is as important as it seems. For you to be able to live below your means, you must first know your means.
3. You have a financial goal
Having a financial goal drives to a better money management. Perhaps you are saving for your dream wedding, a car, or for your child’s education, setting a goal will definitely help you have a clear view on where you want your money to go. This will drive you to focus on achieving that goal.
4. You have money for your wants
If you have money to spend for your shopping and other lifestyle choices that doesn’t harm your savings in any way, you’re doing great! You never have to worry about where you will get the money to buy a gift for your brother’s birthday. You set aside money for yourself and the people you care about.
5. You think a lot before spending on something
This is one good habit that everyone must start developing. Impulse buying affects everyone including the people around them. Giving yourself some time to think about how a material thing can affect or even damage your finances is a good way to practice if you want to save money.
You plan ahead before a major buy. This is not an easy trick, but is definitely effective to avoid buying things you don’t really need.
6. You have an emergency fund
Even in this era where insurance is a trend, there is still a chance that you will spend big money on an emergency situation. An emergency fund is there for you to access every time you need it. If you’re already doing this, then you’re in good hands!
7. You shop with a list, and stick to it
Having a list and actually sticking with it is an important skill that not everyone can do.
Small expenses are actually more dangerous than the big ones. You don’t realize you already spent a lot until you’re already at the counter were your purchases are getting totaled. You see how these little purchases messed up your budget.
But since you already know this, I can now conclude that you are definitely better at managing your money more than you think!
8. You keep track of your expenses
Knowing exactly where your hard-earned cash is going helps you manage your finances better. To keep track of these expenses, there are lots of available apps you can download or you can even use Excel or Google Spreadsheets.
9. You have a good credit score
At some point in our lives, there will be times we will need our credit score to be good. If your credit score is over 700 in the USA, you probably know you’re doing extremely well financially. Maintaining this is simple–you just have to pay your bills on time!
10. You save regularly
Instead of making excuses why you can’t save any money, you work your ass off to have money saved at the end of every week. Because you know how to budget, you can effectively allocate an amount for your savings and that’s what a good finance manager do!