Have you ever wondered why one person lives from paycheck to paycheck, and the other manages to save money with ease? Your first guess will probably be the amount of income, but nothing could be further from the truth. People who have a six-figure annual salary don’t necessarily have to be good with money.
So what makes someone good with money?
Traits of people who are good with money
These are five traits that put people in control of their finances. Plus tips on how you can develop these qualities in yourself as well.
They are goal-oriented
People good with money understand that you have more leftover at the end of the month if you have a goal to work towards. The more forward-thinking people are (not only in terms of money, but careers, for example), the better they are at managing their finances.
Tip: are you also going to work with financial goals? If you make them SMART (specific, measurable, achievable, realistic, and time-bound), you are more likely to achieve your goals. For example, a SMART goal is: I want to have saved 10,000 dollars for my future wedding in one year.
They are disciplined
People who are good with money will not easily catch you on an impulse purchase. For example, they are also less sensitive to discounts. While some people feel that they have saved money when they buy something at a discount, others know that they have not saved anything if they did not intend to buy something in the first place.
Do you have trouble with discipline? Only go to an (online) store if you need something, make a shopping list before going to the supermarket and wait three days before purchasing to see if you still want it.
They are not materialistic
People who are good with money generally have less interest in accumulating things. They would never buy anything for the sake of buying it. They do not derive their happiness from things but from experiences and realize that they have less stress with savings in the bank.
Do you also want to spend your money on experiences instead of “things”? Then make sure that you do not go overboard and spend too much money on this category. Think of a monthly budget that you want to stick to.
They are patient
It’s nice to be patient in a world where online orders can sometimes be delivered the same day, and you can transfer money in two seconds. But people who are good with money are patient.
They can postpone a short-term gratification (buying something in the store) to the long-term (a financial goal). In addition, they are also patient when it comes to their savings and investments. Here, too, they know that a long-term strategy is needed.
As much as we would like to be a few thousand dollars richer tomorrow, this is not realistic. This will discourage some people from saving, but people who are good with money know that every little bit adds up.
They are confident
One of the reasons people spend too much—driving a big car, for example, when they can barely afford it—is because they care about what other people think of them.
People who are good with money care less about expensive new gadgets and clothing but think it is more important to save for bigger goals.