There are usually two types of people, those who say they are “good with money” and those who don’t say that.
What does it mean? Well, for those who don’t think they are “good with money” then the term may conjure thoughts of having a healthy balance in the bank account, possibly being able to handle most emergencies that arise, and basically having a solid awareness of one’s financial health.
And, of course, just because someone says they are “good with money” doesn’t necessarily mean they are. Conversely, someone who says they are “bad with money” may not be as bad as they think. To shed a bit more light on the subject, we have put together a few tips on how you can at least say you’re working on becoming better with money.
Get Serious About an Emergency Fund
We know that it’s not always easy to put away savings, but putting away a little bit, even if it’s only a few extra dollars weekly, can make a big difference if you need an infusion of cash for something like a medical or automobile issue. The hardest dollar to save is sometimes the first. Get in the habit of putting something away and it can slowly become routine.
Know When You’re Being Scammed
Being good with money also means knowing when not to spend it or to protect it. Be wary of any “get rich quick” schemes. In fact, be wary of all of them. It’s your money and just because you see a great offer on social media or even through mutual friends (such as starting up a home fitness shake business, for example) isn’t something that you want to invest your money in.
Invest Long Term
Instead of those “get rich quick” schemes, if you’re going to be good with money then you will learn to identify long term goals and to work with a financial advisor to meet them. Looking toward the future as a whole, not just tomorrow, can help you be better with money in a big way.
Taking Advantage of Your Employer’s Retirement Match
If your employer matches what you contribute toward your retirement plan (up to a certain level) you’ll want to take advantage of that as soon as you’re able to at your job. It’s as close to a no brainer as it comes to being good with money.
You Pay With Cash When Possible
There are some purchases that no one really expects anyone to make with cash. A new home would be a good example. However, there are a lot of purchases that people put on credit cards or take out loans for that they would be much better off simply saving for. Don’t get into debt if there is no reason to do so and practice some patience if you need to save for a month or two to buy an item that you may want now.
Being good with money can be somewhat subjective, however, those are a few good places to start if you want to be able to tell others how frugal you are!