15 Signs You Manage Money Much Better Than the Average American
Our society’s capitalistic mindset often has people turn against one another. It sets others up for success, while the lack of it sets others up for intense failure. Money, as they say in the media, runs the world. Whether we indulge in the materialistic world as it is or fight against the capitalistic nature of society, we can’t live a practical life in modern society without knowing how to manage money. So, how do these resourceful people manage their money?
1. Have a Savings Account
Unfortunately, lots of Americans live paycheck to paycheck, incapable of saving enough funds to start a savings account. Many factors contribute to the lack of savings accounts. For one, you are not earning enough money or becoming stuck in a cycle where you spend every cent on bills and food, leaving none to spare for the future.
2. Financial Advisor
Individuals with money management skills understand the necessity to speak to a higher-up in the field. Like a mentor, a financial advisor reviews documents, answers questions, and opens the door to anyone looking for advice or guidance. Don’t let fear of their judgment scare you away from sound fiscal advice.
3. Pay Bills on Time
Have you ever paid a late fee? Or did you wait too long to pay a bill, forget about it, and have to pay twice the next month? People who track their finances monitor billing cycles and ensure they never miss a payment.
4. Never Overdraft
I’ve mentioned before that the overdraft cycle is a huge contender in poverty. When a person doesn’t hold enough money in an account to make a purchase, they must make the purchase. Since their bank account is below the amount needed for the purchase, the bank sends an overdraft alert, meaning the account swooped below zero dollars. A person with adequate monetary skills never allows their account to overdraft.
5. Have Autopay Set Up
If someone enrolls in autopay, that means they have enough money in the bank each month to cover their expenses; therefore, that indicates their monetary intelligence and skilled bill-planning. Those who do not have autopay set up panic each billing cycle, scraping funds together to cover expenses.
6. Paying Off Debt
The majority of people accrue debt at some point in their lives. Whether the debt materializes in a mortgage payment, a car payment, or one too many poor choices in college, Americans carry debt. People who deal with debt showcase a positive skill in managing the money owed. As most people have debt, most struggle to pay off their debts.
7. Have a Budget
Creating a budget comes with three steps. 1. Create the budget. 2. Stick to the budget. 3. Repeat the process. Avoid the act of losing yourself when creating a budget that you don’t stick to. Or the act of sticking to the budget once, noticing your skill, and abandoning it the next month.
8. Have an Emergency Fund
Like a savings account, an emergency fund serves as excess money stored away in a natural disaster, accident, or other emergency. However, a person can touch their savings account as they please. An emergency fund forbids withdrawals except in case of an emergency.
9. Good Credit
Rich people might have a bad credit score, while financially struggling folks might have a good credit score. Those who manage their money well, make more than one payment a month, and monitor their credit card purchases and interest rates show skilled money management skills.
10. Debt Pay-Off Plan
Perhaps you’re someone with a load of debt stuck in a dead-end job, yet you make enough money for life to work. After paying bills and rent, you scribble a plan to eradicate your debt before it piles up and consumes your life. Congratulations.
11. Track Spending
Tracking spending seems like a monotonous exercise, resorting to the memories of grade school, although the action saves money. When you examine how much you earn vs. how much you spend, a shopping spree might scare you away as opposed to your pre-tracking days.
12. Side Hustle
We live in a society where no one works a single job anymore. Everyone (or everyone wants) another gig to bring in extra cash, a job in a niche hobby requiring minimal effort and yielding profitable results. To start, look at Uber driving, delivery driving, blogging, freelancing, and odd jobs.
13. Spend Within Reason
An issue people make when they receive their first “adult” paychecks is spending above their means. Sure, they’ve earned $600 in one check. Nonetheless, they forgot to factor in bills and rent payments, so they might wear a fancy new pair of sunglasses, though they can’t pay rent.
14. Live Below Your Means
This is a simple tidbit. Don’t spend what you don’t have. You know if you can or can’t swing it. Don’t let your present self put your future self in dire debt.
15. Don’t Have Debt
Financially sound people engage in all of the aforementioned measures while living debt-free lives. Achieving debt-free status could take a minute, but it is possible.
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