The definition of being good with money is different for everyone. However, to most people, being good with money means having zero debt, a ton of savings, and/or a huge investment portfolio. The people who have none of these things may find themselves feeling a little hopeless. However, there is good news; if you see yourself as someone bad when it comes to managing money, which probably is not the problem, all you need to do is learn a few basics to get your finances on track once and for all!
Here are all the tips you need to become good with money, confirmed by experts!
1. Check Your Money Regularly
One of the biggest reasons why a person isn't able to develop a good money habit is because they’re afraid to know how much they have got. A financial counselor has said that a person will only be able to understand the flow of their money in and out of their bank account if they regularly look at their money. A 15 to 20 minutes check with your money every week is enough. Set a reminder on your calendar and follow it like any other commitment! Scan your money and ask yourself if any changes took place or if it's in line with what you had expected.
2. Be Aware Of Your Triggers
If you're someone who struggles with an overspending problem, take some time to reflect on why you feel the urge to spend, and when? What it is that you feel, and what do you like to buy most? Being aware of your spending triggers can help you figure out ways to change your behavior as well as prevent you from impulsive purchases. Write down every transaction you've made, so that you’re well aware of when you’re spending your money.
3. Try a Zero-Based Budget
You must learn to take control of your finances! Learn to tell your money what to do and when to do it. Experts recommend a zero-based budget. This means that you create a monthly budget on a paper outlining where all your money is already spent. It’s the best and the ultimate way of managing your finances as every dollar that you make has a job, whether that's paying debts, paying bills, or putting it towards investments and/or savings.
Try all these tips and see yourself becoming good with money as every day passes!