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6 Signs You Are Better At Money Management Than You Think You Are

6 Signs You Are Better At Money Management Than You Think You Are

We know millennials have a strange relationship with money, not only because they lack them, but also because they grew up seeing the effects of economic hardships on a strong nation. The simple thought of money is enough to make millennials’ heads ache. They have a huge debt for their studies, they have no perspective of buying their own house, they have troubles landing a good job and many of them are forced to move back with their parents, when they can’t afford to pay the rent. This is why crowdfunding for your wedding is now millennials’ only option for affording a wedding.

As a millennial myself, I know how shattering it can be to wonder how are you going to live in retirement years or what will happen if you get fired.

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But experts in finances say you are probably better at money management than you think you are, if you are doing these things. I know I read this list breathlessly and I rejoiced at the end, when I realized I had checked multiple items off the list. I hope you will also score well!

1.You think about saving for retirement

As millennials are now in their 20s-30s, we have a lot of time until retirement. If you are thinking of your retirement years, despite this, you are on the good path towards proper adulthood/money management thing. According to money management expert Holly Perez, take advantage of your 401K and look for opportunities to maximize your savings, as well as finding reductions for your taxable income. You use recurring payments for the monthly bills

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In order to keep your credit score high, it’s very important to pay your bills on time. The most convenient way to do it is activating your recurring payments option. This way, you won’t need to remember paying the bills, as the bank will do it for you, automatically. If you are using this option, your financial status is not endangered by delays in payments and you are able to live off the rest of your money. The best time to set the automatic payments is right after payday, when your account has enough resources.

3. You also made automatic payments to your savings account

One of the best ways to ensure you do get to save money for your retirement fund is setting up automatic payments to your savings account. You can do this online, via online banking, at the end of each month, after you’ve paid for all the bills and groceries. If you are afraid you are not going to do this each month, ask your employer to direct part of your pay towards your savings account. For those of you who don’t like either of these options, simply set up another automatic payment, just like you did for your bills. If you already direct money to your savings, you know this is a great way to prevent overspending.

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4. You use financial apps and you value safe banking

If you are using financial apps to know the status of your account at any time, you are on the right track. People who are proficient in money management never leave their accounts to fate: they use financial and budgeting apps or strategies to make sure every dollar is spent wisely.

5. You are using your credit and debit cards wisely

All the previous things do suggest you are using your credit and debit cards wise, but this is so important, I had to reinforce it. Having a credit card and using it at providers who accept credit cards is a good thing, as it helps you build your credit history. This will enable you to get loans and benefits from low interest rates. However, you need to make sure you are not keeping debt on your cards!

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6. You have an emergency fund

The ultimate sign you are doing good is having an emergency fund. When you have to pay for something unexpected, you won’t have to take a loan, rely on crowdfunding or borrow money, which is going to make saving almost mission impossible. Having an emergency fund allows you to have peace of mind, as well as a base for future savings.

You don’t have to have millions of dollars in hidden, offshore accounts, in order to be financially stable. Money management is about knowing how to handle the payments and make the most out of your monthly revenue. If you recognized yourself in any of these signs, you’re more financially-savvy than you think you are, so congrats!

Featured photo credit: Good Vibrations Images/Elitedaily via cdn29.elitedaily.com

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Last Updated on January 21, 2020

How to Develop a Millionaire Mindset in 6 Simple Steps

How to Develop a Millionaire Mindset in 6 Simple Steps

We all like to dream about being financially wealthy. For most people though, it remains a dream and nothing more. Why is that?

It’s because most people don’t set their mind to achieving that goal. They might not be happy in their current situation but they’re comfortable – and comfort is one of the biggest enemies of growth.

How do you go about developing that millionaire mindset? By following these simple steps:

1. Focus On What You Want – And Take It!

So many people are too timid to admit they want something and go for it. When there is something that you want to accomplish don’t think “I could never actually do that”, think “I could do that and I WILL do that”.

Millionaires play to win, not to avoid defeat.

This doesn’t mean to have to become a selfish jerk. What it means is becoming more assertive and honest with yourself. You don’t have to grab off other people. There is a big pot of unclaimed gold in the middle of the table — why shouldn’t you be the one to claim it? You deserve it!

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2. Become Goal-Orientated

It’s almost impossible to achieve anything if you don’t set firm goals. Only lottery winners become millionaires overnight. By setting yourself attainable goals, you will get there eventually. Don’t try to get rich quickly — get rich slowly.

Let’s take the idea of making your first million dollars and expand on what kind of goals you might set to get there. Let’s also say you’re starting at a break-even position – you’re making enough to get by with a few luxuries, but nothing more.

Your goal for the first year can be having $10,000 in the bank within a year. It won’t be easy but it is doable. Next, you need to figure out the steps you need to take to achieve that goal.

Always look at ways to make growth before cutbacks. With that in mind, you might want to see if you can negotiate a pay rise with your boss, or if there’s another job out there that will pay better. You might be comfortable in your old job but remember, comfort stunts growth.

You may also have other skills outside of your workplace that you can monetize to boost your bank balance. Maybe you can design websites for people, at a fee of course, or make alterations to clothes.

If this is still not enough to make the money you need to save $10,000 in a year, then it’s time to look at cutbacks. Do you have a bunch of old junk that someone else might love? Sell it! Do you really need to spend $10 on your lunch everyday when you could make your own for a fraction of the cost?

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If you are to become a millionaire, you need to start accumulating money.

Here’re some tips to help you: How to Become Goal Oriented and Achieve More in Life

3. Don’t Spend Your Money – Invest It

The reason you need to accumulate money is for step three. Millionaires tend to be frugal people, and that’s because they know the true value of money is in investing. Being your own boss goes hand-in-hand with becoming a millionaire. You’ll want to quit your regular job at some point.

Stop working for your money and make your money work for you.

Rather than buying yourself a new iPad, that $500 could be used to invest in the stock market. Find the right shares (more on that later), and that money could easily double within a year.

There’s not just the stock market — there’s also property, and your own education.

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4. Never Stop Learning

The best thing you can invest in is yourself.

Once most people leave the education system, they think their learning days are over. Well theirs might be, but yours shouldn’t be. Successful people continually learn and adapt.

Billionaire Warren Buffet estimates that he read at least 100 books on investing before he turned twenty. Most people never read another book after they’ve left school. Who would you rather be?

Learn everything you can about how economics works, how the stocks markets work, how they trend.

Learn new skills. If you have an interest in it, learn everything you can about it. You’d be surprised at how often, seemingly useless skills, can become extremely useful in the right situation.

Start developing the habit of learning continuously: How to Create a Habit of Continuous Learning for a Better You

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5. Think Big

While I advise to start off with small goals, you absolutely should have a big goal in mind. If you have a business idea, then that is your ultimate goal – to start that business and make a success of it. If you want to invest your way to millions of dollars and do little work other than research, then that is your big goal.

There is no shame in not achieving a big goal. If you run a business and aim to make $1 million profit in a year and “only” make $200,000, then you’re still significantly ahead of most people.

Aim for the stars, if you fail you’ll still be over the moon.

6. Enjoy the Attention

To be successful, you have to be willing to promote yourself and enjoy the attention to a certain extent. Now the attention doesn’t need to be on yourself, it could be on your brand, but attention definitely attracts money.

Never be embarrassed to get your name out there. That means finding a spotlight and being brave enough to step right up underneath it.

If you run a business, try contacting the local papers. You’d be surprised at how amenable they often are to running a story about you and your business, and it’s all free publicity.

Above all, remember: You control your own destiny. Push hard enough for anything and you’ll get it.

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Featured photo credit: Austin Distel via unsplash.com

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