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10 Signs That You’re A Good Financial Manager

10 Signs That You’re A Good Financial Manager

It feels wonderful when someone acknowledges your work and the fact that you’re doing a good job. Conversely, sometimes you can become a severe critic of yourself. It could be tough to identify that you are not chasing rainbows, and you are on the right track. This is particularly accurate when you are trying to manage your finances.

There’s a whole host of guidelines, rules, guides, recommendations, etc. that you can follow. But the point to consider here is, how can you judge if you’re really good in financial management? You might be on the right track, even if you aren’t quite there yet. These 10 signs are great “road signs” to let you know you’re on the right path and good in financial management.

1. You have great credit

While your credit score is not the supreme factor of financial management, your good credit score indicates your solid financial management expertise. If you have excellent credit, it shows that you have minimal debt and always pay your bills on time.

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If you don’t use credit, you don’t need to get worked up about it, since there are other signs to know that you’re good in financial management.

2. You are proactive

A good financial manager always creates a monthly budget. Even if you earn a small income monthly, it doesn’t mean there is no need to plan for it. Indeed, you need a budget most, since you have very little or even no left-over cash that can go to savings which could eventually be utilized for a healthier financial future.

3. You save money each month

If you save money each month that means that you are on the right roadway. If you are saving some money in a rainy day fund and your retirement fund regularly, that is an indication of a good finance manager. If the situation is totally opposite and you can’t save “enough,” that means you aren’t managing your finances well.

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4. You prioritize things

A great money manager always schedules his priorities – which is the ladder needed to reach your needs and eventually your goals. If you are not putting off anything important and responding to emergencies it shows how good you are at managing your pockets.

5. You don’t stress out at the end of the month

If your stress starts bouncing up as the end of the month comes and you desperately wait for your paycheck, there is an honest probability that you simply aren’t managing your finances well.

However, if you aren’t worried at the end of the month about the money in your pocket, because you know that you can easily manage until the succeeding paycheck without any worry, you are undoubtedly doing something that shows how strong you are at managing your finances.

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6. You look for additional opportunities

You take extra time hunting for additional income streams or considering to invest part of the budget in other activities, or doing cost-saving activities. It’s undeniably fruitful to achieve your goals and proves that you are good in financial management.

7. You pay bills on time

If you are paying your bills on time, or you don’t adjourn paying your bills, that’s a strong sign that you are managing your finances properly.

8. You understand your insurance policies

There are many mechanisms to an insurance plan. If you do not have extra expenses and understand components of an insurance policy then you are on the right path. If you are spending too much each month for something you don’t need or want, then you need to work on your finances.

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9. You have no liabilities

If you own a credit card and you are actively paying off your credit card bills at the end of each month then you are certainly a good financial manager. The element of being able to live within your resources, avoiding liability, is a good emblem.

10. You manage all your liabilities

The existence of liabilities doesn’t mean that you are bad at managing finances. Certain types of liability are acceptable, like car loans, house loans and education loans, as long as they are manageable.

Additionally, if you are keenly realizing a debt reimbursement plan, you are probably doing just fine to manage your finances.

Get it together and make a difference for you and your family before your option to choose is replaced by the intestacy laws of your state.

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Tayyab Babar

Tayyab is a PR/Marketing consultant. He writes about work, productivity and tech tips at Lifehack.

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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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