Try to answer the following questions for yourself by choosing one out of the two categories-
Are you still driving around in an old or unsafe car since you can’t afford repairs or a new car, or can you upgrade your car for a safer one at the drop of a hat?
Are you constantly worried about being behind on bills, or are you looking forward to an upcoming holiday that you have fully paid for?
Are you always counting the days until payday, or are you content with your current financial situation?
You know, as a vicenarian, I used to believe that it is absolutely normal not to know how good or bad we are with money. But then this pandemic situation happened, and it was like a wake-up call. It actually made me realise that now is the time to become aware of my current financial situation and work out how I can master building a financial future while making myself more comfortable in the present.
So I am sharing a list of signs that’ll help you judge how good you are with money, see how many of them apply to you-
Living with your means is a critical part of staying in the black and growing your wealth. So first, you have to figure out what your means are.
Once you have an idea of how much you earn and how much you spend, simple arithmetic will reveal what you can or cannot afford.
You can afford housing and utilities, food, transportation, college fees, and other essential needs every month without going into debt.
You don’t worry about whether you can afford lunch with coworkers or about purchasing the latest smartphone or camera you’ve been eyeing.
You can cover all your necessities, afford things you want, not just the ones you need, and still stash away funds for your future or emergencies.
Possibly you haven’t started putting money away yet, but considering what you want your retirement to be like and how much it would cost is itself a good start.
You’ve foreseen, priced out, and already started planning on how to afford an asset in a few months or a year from now.
You keep a check on your credit score and try improving it since it helps the lenders decide whether they’ll lend you money for major purchases, such as a car or a home.
You avoid bad debts, such as credit card debt and high-interest rates, since they don’t help you build wealth or assets.
You are ahead of the game if you have regular conversations about your financial reality and future with your partner.
Wealthy people value continued self-education and read to learn more about the world. As the saying goes, “The more we learn, the more we discover how much we do not know.”
Rather than putting all your savings in the bank, you invest your money since it has the potential for growth far more than what you’d see in a traditional savings account.
So how many of them apply to you? If they all do, then pat yourself on the back for being an incredible financial manager!