What’s the difference between someone who is smart with their money and someone who could use a bit more discipline? Here are ten examples of things people who truly understand the value of the dollar do — or don’t do.
Set Clear Goals
People who are smart with their money don’t do so without clear intentions. They’re goal makers, always knowing not just the what, but the why behind their frugal habits.
Track Their Spending
Financially aware people track everything they spend their money on. And by everything, we do mean everything. No single cent or credit card swipe goes uncounted. They know that if they don’t track everything, they might as well not be tracking at all.
Use a Realistic Budget
A realistic budget is a must for people who are good at money management. Note that we said “realistic” and not “restrictive” — they know that if they don’t allocate their money in a way that makes sense for their lives, their budget is dead in the water.
Prioritize Saving
It makes sense that those who care about their spending also have excess every month to save. But for them, it’s not even considered excess: it’s part of their plan. They build saving into their overall financial health so it’s a feature and not an afterthought.
Invest in Quality Products
We’re talking about people who make their dollars count — not those who try to hoard their money like a fantastical dragon. That means they know the difference between buying something cheap that will break in months and investing in something slightly more expensive that will last them four times as long.
Aren’t Afraid to Tweak and Refine
No one’s financial methods are perfect. And those who care about their financial future will be the first to tell you this. They’ll adapt to circumstances, adopt new ideas, and abolish old concepts that don’t work for them anymore.
Build an Emergency Fund
What better way to make a dollar count than to set your future self up for success? An emergency fund is a hallmark of people who are good with their money — and it’s something that everyone should build for themselves.
Use Credit Wisely
Credit is a double-edged sword. Smart people know to use credit wisely, paying off balances in full every month to avoid interest charges. They also keep track of their credit scores and strive to keep a positive credit profile.
Celebrate Small Wins
A word from the wise: celebrate your small wins. Not just because it’ll make you feel better about your progress, but because you can’t expect anyone else to build you up.
Set Up Automatic Payments
Why stress over monthly payments if you can simply automate them? Well, financially sound individuals don’t have that problem; they set up automatic payments for every single account that they can.
Ask For Help
Too many people believe that pulling yourself up by your bootstraps is the only way to achieve success. But smart, frugal people aren’t afraid to ask for professional assistance to handle their finances. They let the experts handle their money while they get to do, well, anything else they love instead of panic about their upcoming bills.
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