18 Signs of a Skilled Financial Management
Check if you have financial habits allowing you to increase your savings and to avoid empty pockets.
1. You Have Savings
Under the mattress or on a saving bank account you have a sum equal to your triple monthly incomes at least. These funds will be needed if you suddenly get fired, injured or meet any other unpleasant issues making you lose your stable income source. During three months, you’ll be able to pay from that account for household bills, house rental, food and other things in order to live as you are used to live.
2. You Save a Part of Your Monthly Salary
If you add some savings to your account from every monthly payment, this means two good things at a time. First: you are fine with your expenses and you can let yourself save a part of your income. Second: your savings grow every month.
3. You Count Expenses After Every Purchase
Money loves being accounted. Finances do not like if you treat them carelessly. You write down all the exes even if they demonstrate your budget management mistakes. This helps you analyze what expenses could be avoided and allows you to correct your outlays for the rest of the month.
4. You Have More than One “Wallet”
You do not rely on your memory and circumstances in such important questions as the financial ones. That is why your money for everyday needs are on your credit card, unexpected issue costs are on the saving account, and big goal (apartment, car, vacation) finances are on the deposit account.
Thus, your funds can be sorted in the paper envelopes, too. The point is, you’ve got no risk to spend the savings devoted to other goals by accident.
5. You Know How to Save
You are aware of many ways to save funds on everyday purchases. For instance, you buy big packs in order to lower the price for a single good; you don’t visit a supermarket with an empty stomach; and you know all the tricks of sellers who push you towards making unconsidered and impulsive purchases.
6. You Avoid Empty Outlays
There are some easy ways to spend your money for nothing: buying plastic bags at the supermarkets, paying for that “walking” coffee cup and so on. But you are fine with that, and you know what expenses can be easily avoided.
7. You Create Shopping Lists
The easiest way to avoid unnecessary expenses: understand what you need to buy in advance.
8. You Plan Budgets for Month and Year
Your personal financial plan makes your relationship with money simple and easy. You know which expenses are unavoidable and how much money is left for entertainments. You can predict big outlays and can start saving money for them in advance. This helps you get rid of a “pendulum” situation when on one day you have much money and then you suddenly get empty. You can supply yourself with all the necessary things like that.
9. You Don’t Seek for Pennies Two Days Before Payment
You don’t have the situation when you lack funds to buy even bread and milk during the last days before payment. Two reasons can explain that: you are a master of budget planning, or you earn more than you spend.
10. You Pay Household Bills, Taxes and Fees in Time
Fees are very unpleasant punishments for your lack of discipline. But it is easy to avoid it if to pay all the bills in time. You know about that and never miss a thing.
11. You Have Financial Goals and Plans to Achieve Them
You save money for vacation, your car or a control pack of stocks of an oil company. And you know exactly how much money you are going to need if to take inflation into account, you have a realistic deadline for a goal achievement and you save a certain amount of funds every month according to your saving schedule. Such approach means that you’ll make it.
12. You Know Prices
You know the cost of your usual products, household chemicals and other basic goods. Your hand won’t put “discounted” milk into the basket because you know that the same milk is two times cheaper in a market nearby. This helps you choose the most profitable goods and avoid unnecessary outlays.
13. You Use Apps That Help You Save Funds
It is not effective to ignore modern technologies if they help you save finances. There are various applications that track discounts and compare prices in different shops. And you don’t even need to get out of bed to make that kind of a financial analysis.
14. You Don’t Borrow Money From Your Friends and Relatives
Living within your means is one of the main principles of a correct financial treatment. This means that if your income is not enough and you need to ask someone for help, then something went wrong with your financial planning.
15. You Don’t Take Consumer Credits for Things You Can Buy on Savings
Even if they offer you a credit with a low percent, it most likely has the “built-in” insurance, additional warranty service or anything that makes you pay more. Plus, many purchases are not vital (like a new smartphone or a gaming console). You can easily wait a bit and save some funds.
16. You Can Count
Most probably, algebra course has never been needed in your entire life. But the knowledge gained on math lessons is necessary every day. Simple calculations help you understand which way to buy something is more profitable, know if transport outlays are not bigger than discount profits, and if it is profitable for you to have a cash-back bank card if you pay 50 dollars per year for it and can get back only 2-3 dollars per month.
17. You Have a Plan to Increase Incomes
Even if you earn enough to live without economy, it is not effective to be satisfied with that income level. That is why you look for new ways making it possible for you to become a more paid specialist: you learn new things, make useful connections, take part in perspective projects, etc. Additionally, you see the direction for you to grow in order to increase your incomes.
18. Investments Interest You
Even if you don’t have sum that could be profitably invested yet, you are interested in deposits, investments and other ways to make your money work That’s a correct approach that will help you at least not to lose a part of your savings due to inflation in the future.