Having a good understanding of money, especially our
money, can only be beneficial to us. We don’t need big books on Money
Management before we can put our finances in order. Sometimes, all we need to
put in check are our daily money routines and habits. Let us take a look at
five habits financially savvy people exhibit on a regular basis to develop
their personal finance.
They Save Money at all Cost: Saving money
is priority to these people. They save for everything; emergency funds;
vacation; retirement; education; EVERYTHING! Saving money comes first. No one
really knows tomorrow, but financially savvy people can worry less because they
have the means to keep their heads above water when the storm comes. Of course,
the storms don’t always last forever. It is very important to save regularly at
intervals; it could be daily, weekly or monthly. Another thing that helps is
automating your savings, so you do not have to always be bothered about what
and how to save at a particular time. Also, make sure to shop around for
savings platforms that offer highly competitive interest rates, because at the
end of the day, we are about growing our money.
They have more
than one stream of income: This is something we are a big believer of. It
is almost a taboo to have just one source of income. Statistic now shows that
millionaires have seven streams of income. Well, that can be a lot, especially
if you currently have one or none, an additional source is a good start. Who
says it has to be stressful or extravagant? It can be as simple as monetizing
the fun things you have been doing for free. For example, charging money for
making your friends’ hair or watching your neighbor’s baby. Little drops make
the mighty ocean.
They are not shopaholics: Financially savvy people are not compulsive buyers.
They don’t instantly buy all the things that they like and when they do, they
buy at the best price. This is because they are great bargainers and
negotiators. Where someone who isn’t frugal buys a dress for $4,000 a
financially savvy person can buy the same dress for $1,000 and probably from
the same seller. It also cannot be emphasized that you only buy what you need.
They jokingly negotiate to the last pence/kobo even throwing banters while doing
it.
They don’t take a loan without an actual plan: That you are financially savvy doesn’t negate taking a
loan if you need to. However, these people do not do this for frivolous
reasons. We have established the fact that there are good loans and bad loans
and responsible people take loans for a good cause. Loans can be taken to
finance an investment opportunity or to start or expand a viable business and
many other good stuff. The list is endless. In developed countries, people are
encouraged to use their credit cards responsibly because it not only affords
them a great credit score but also opens up opportunities financially. Take a
loan with an actual plan to use appropriately and pay back to avoid running
into debt not to get some form of luxury that you will further spend your hard earnings
or income to service.
They do not live above their means: Okay!
Now I’m screaming… See that dramaturgy; ‘Fake it ’til you make it’ does not apply
here. Do not earn $10,000.00 monthly and fund a lifestyle of $20,000.00 per month. Yes, that’s serious!
Don’t spend money you don’t have and do not create the impression that you have
it. Create an opportunity to save and grow where you are at the moment. Always
live within your means/income.
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