Some people claim that they are naturally good with money. Some people claim that they aren’t. There are a few different reasons a person might think they are/aren’t good with money. Maybe you never have enough left over at the end of the month, or alternatively, you always find yourself with enough money for everything. Let’s talk about what being good with money is really all about.
Just What is Being Good With Money Include?
Your Self Worth
Many people don’t realize that how good they are with money is usually directly tied to their self worth. If you don’t have high self esteem, chances are, you won’t be good with money. You may not have a lot, or you may spend it with nothing to show for it as soon as you get it. By improving your self worth, you can improve your relationship with money and how you use it.
Your Attitude Towards Money
If your attitude towards money is negative, you’ll only ever see the negative. You’ll only see your utility bills, and other things that make you unhappy. However, if you have a positive attitude towards money, you’ll be grateful for all it brings. The food on your table, the roof over your head, the pillow you sleep on. Even if you don’t have a huge TV or the same things as other people you know. Being grateful towards money and improving your attitude is a must.
Your Financial Goals/Plans
If you don’t have financial goals and plans to reach them, how do you expect to have more money in the future than you do now? Even just rough plans and ideas in your head will help you to keep moving forward and improve the way you see and use money.
Your Budget And How Often You Look At Your Account/Statements
If you don’t have a budget, how do you know how much money you can afford to spend on food, clothing, and other things? You don’t need to struggle with your budget. A budget is simply meant to keep you in the green and have enough for everything. Also, if you avoid looking at your account/statements like so many other people do, it’s too easy to spend more than you have and go into your overdraft. This can be a dangerous way to live!
Having a bit of money saved is crucial. What if you have an emergency? You never know what life will throw at you, whether it’s a flat tyre or a flood in your home.
How Careful You Are About Spending Money You Haven’t Got
So many people use credit to spend money they haven’t got, leaving them with crippling debts. Sometimes, using credit can be useful, and even safer than using the cash you have. However, if you’re using it for random things and not paying it back on time, you’ll get into trouble. Making payments on time is crucial for your credit score, for those of you wondering ‘how do I build credit?’.
How Much You Think About Each Purchase You Want To Make
Carefully thinking about bigger purchases, and waiting to make sure you really need/want them is also important. Buying on a whim usually leaves you with no money and things you don’t even use.