Whilst budgeting regularly is a great money habit. to have, it’s not the only sign which indicates that you’re generally good with money. Here we take a look at the giveaway behaviours which probably mean you’re financially healthy and stable.
You’re probably doing well financially if you have a regular, reliable income and don’t need to count the days until you’re paid.
Paying your bills on or before they are due helps you avoid late charges and getting into arrears. You always know when your bills are due and ensure you have money put aside to cover them. You don’t wake up in the middle of the night worrying about how to pay the bills – it’s done!
We all have some debt at some stage in our lives and borrowing money can help us to build a good credit rating. However, if you’re good with money, you always pay at least the minimum repayments and try to pay debt back as quickly as possible. You avoid interest charges at all costs!
You’re good with money because you’re able to plan ahead and build things into your budget. For example, you plan for spending at Christmas by saving something towards it every month or by adding extra to your budget for birthdays. You avoid getting into debt by planning ahead.
Life is full of surprises and not all of them good! Many of us can be knocked off course by the unexpected things that crop up from time to time. But if you’ve prepared for the unexpected by building up what we call an "emergency fund", chances are you’re pretty financially sound.
Sticking within your budget isn’t always easy but if you’re money-smart, you’ll understand that a budget needs to be tweaked and constantly under review. You understand that circumstances change, finances aren’t always static and your budget needs to be fluid.
Another indication that you’re financially adept is that you think about your purchasing decisions. You plan purchases ahead of time, avoid impulse buying and where possible, you research and review before committing to a purchase.
Planning for the future is key to being financially astute. If savings and pension contributions are a regular fixture on your budget, you’re definitely on the right track! Being prepared for a rainy day means you’re doing budgeting right!
You know you’re in a good place financially if you can treat yourself occasionally without it impacting your budgeting. It’s a common misconception that budgeting is about reducing spending. Whilst this can sometimes be true, budgeting is more about managing what you do with your money – not limiting your spending.
Teaching kids about money and budgeting, as well as passing on good habits, shows how money-wise you are. You have great advice that kids can learn from and you understand the benefits of giving them that advice.