Can you consider yourself as a good money manager? ‘Yes’, ‘No’, or ‘Maybe’? Don’t worry! It may happen that unknowingly you’re following good money management habits.
Check out these 10 signs and judge whether or not you are good at money management. While analyzing your financial situation, you may also come to know that you’re rich than what you think of yourself.
So, keep a note of how many signs you can relate to yourself.
Check out these 10 signs that you are good at money management
1 You have opted for automatic payments
Do you get shocked after seeing your bills every month? No? Then, you’re on the right track and show signs that you’re good at money management.
Along with that, if you opt for automatic payments to your savings account, then you score some extra points.
2 Managing credit cards wisely is your strong point
You need to use credit cards and manage the payments in the right way. However, having too many credit cards is not advisable.
When you manage your credit cards wisely, it is the gateway to take out loans at favorable interest rates and in turn, help you enjoy a good lifestyle, and definitely, build a good financial future.
But, if you’re not able to manage your credit cards properly, you can easily fall into debt and will have to struggle to pay off your credit card debt.
3 Just ensure to repay your credit card bills at every billing cycle.
Another thing - When you’re paying with debit cards, keep a track of the money you’re spending.
4 You question yourself about the strategies you’re following
If yes, then you’re on the right track.
It is better if you consult a financial advisor from time to time to be sure that you’re following the signs of a good money manager. Through this analysis, you may also discover signs that you’re wealthier; that is, your financial planning and investments will bring profitable returns in the future.
5 Building an emergency fund is your top priority
Experts say that the ultimate sign that you are rich than what you think is to have an appropriate amount of emergency fund.
Building an emergency fund gives you peace of mind and in turn, you can save money on health issues.
It makes sense - right? :-)
6 Saving for retirement is your second priority
If building an emergency fund is your top priority, then saving for retirement definitely ranks second.
You can open a 401(k) account and deposit the maximum amount you’re eligible to and you’ll be assured to have a good life even after retirement.
7 You put emphasis on earning and not only on saving dollars
If you put more emphasis only on saving, then it’s a sign of being a poor money manager. Astonished? But, it’s true.
Most rich people rely on getting paid according to results, and are typically self-employed.
Don’t worry if you do a job and job satisfaction matters to you. Look for avenues to earn extra or try to get a promotion to earn more.
8 You have a diversified portfolio like a good money manager
One of the best ways to earn more is to invest wisely.
Researches have revealed that millionaires usually invest about 20% of their household income, every year. So, this is a definite sign to be wealthier.
Only investing is not enough; you need to invest in a diversified portfolio, so that if you don't profit from one investment or lose in one, other investments will help you achieve your financial goals.
9 You like updating knowledge on safe banking
Financially savvy people mostly use apps to be sure that they’re spending wisely.
It is advisable you check your account details from time to time so that you can report immediately if you find something fishy.
10 Only buying things you can afford is a sign that you are wealthier
It is not wise to load your credit cards to buy the things you want. Instead, save the amount and then buy, or at first make a plan to pay the amount back, and then go ahead with your buying urge.
Think - if you have the money to buy a RV (Recreational Vehicle) with cash, you can say that you’re rich. But, if you buy the same RV after about, say, 7 years, you’ll still be regarded as rich, but by then, you might have attained another financial goal.
Surveys point to the fact that about 33% Americans don’t have retirement savings or household savings.
Both you and your partner like talking about money with each other
A study from Fidelity Investment in 2015 stated that about 40% people don’t know how much their partner earns. This is not a right approach and can definitely be a sign that you are a poor money manager.
If you don’t have idea about total earning, how will you plan for your retirement?
Therefore, make the initiative to talk about money. You can select a money date every month - that’s the best way to talk solely about money management strategies to follow.
So, how many of these signs do you follow?
Congrats! Even if you follow one or two - you’re on the right track. Start following the other tips and build a good financial future.
All the best!