Money management is an art. If you get it right, your life is sorted. But, if you’re still struggling, then watch out for these signs.
There are two types of people in this world – Those who know every minute detail about their financial life and those who are still oblivious to everything related to money. The latter only tends to know when their salary gets credited and where they need to spend it, but when it comes to other financial matters, they’re fairly clueless.
If you belong to the first group, you’re going great and there’s nothing much you need to change about the way you handle your finances. But, in case you belong to the second category, you need to start making some changes as early as possible.
Additional Reading: 7 Deadly Sins Of Financial Management
In case it’s still unclear which category you belong to, don’t worry! Here are a few ways to tell if you’re great at handling your finances or not.
You’re a Credit Score master!
You’ve been so good and disciplined with your credit that you have a spotless credit history. You pay all your Credit Card bills and loan payments on time, which has helped you build an excellent Credit Score over time.
People often take inspiration from the way you handle your finances and aim at becoming more like you. Even though you swipe your Credit Card often, you never see the need to worry about your finances. That’s because you have it all under control, all the time.
Additional Reading: Terrific Ways To Build Your Credit Score
Savings? That’s a cakewalk for you.
Although most people around you seem to be unable to save, you have mastered the art of saving already. You know how much you need to save and more importantly, how to achieve your targets.
While people around you may still be considering the option of opening a Recurring Deposit, you on the other hand have already opened one (or more) and have started saving separately for separate goals.
You know exactly how much you need to save for different things and have already made arrangements to rock those targets. Whether it’s that dream house you’ve been eyeing or those retirement dreams of opening a bar by the beach; you’ve it all figured out.
Additional Reading: How To Achieve Savings Goals
Right investments at the right time
You’ve got your investments game in place. You’re clear about your future plans and current requirements and you know which investment instrument will make the most sense for you. Investing in the stock market, opening a Fixed Deposit; you’ve done it all.
Oh! And not to forget, you know the best place to invest. Yes! We’re talking about real estate. That’s a golden investment and you know it. Investing in a piece of land always helps. If you choose the location of the plot/flat wisely, you can make some great profits out of it.
Additional Reading: Real Estate Investing 101
Budgeting? No sweat!
You’re quite active and clear about what you want, financially speaking. You have a financial plan set in your mind. So, you know where your life is headed and what your money needs will be in a couple of years down the lane. This clarity helps you plan your money better.
When it comes to investments or savings, you don’t like to laze around. You know what you want and you just directly aim at achieving it. No shortcuts and no detours. The secret to this financially proactive behaviour is the fact that you’re a master at budgeting. You know how to balance your priorities and that helps you eliminate all the unnecessary expenses from your monthly budget.
Additional Reading: A Superbly Easy Way To Keep A Budget
Stress? What’s that?
Since you’ve got a good hold over your finances, you have no reason to feel stressed. As a result, the chances of taking impulsive financial decisions drop down significantly. You’re not one of those people who’re perpetually broke by the end of the month. You’re not the one worrying about overusing your Credit Card because you know exactly when to hit the brakes.
Additional Reading: 5 Credit Card Mistakes To Avoid
Temptations? All under control
You’re not one of those people who give in to the temptation of splurging. You know how to fight the urge of swiping your Credit/Debit Card. You’re well aware of the fact that one impulsive decision can wreck your monthly budget and this realisation keeps your shopping urges under check.
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Did anyone say discounts?
Just because you’re extra cautious when it comes to money, doesn’t mean that you don’t shop. You just look for the best places to shop, the best time and the best offers. Once you get a good combination of these three, you shop till you drop.
Even if that means hunting those discounts down and roaming in the scorching heat to look for a better deal; you never give up. We agree that it takes a lot of hard work, but you also get to save a lot and handle your finances better than others.
Additional Reading: Are You Guilty Of These 7 Online Shopping Mistakes
Timing is the key
Not just paying your Credit Card bills on time, you make sure you pay all your other bills on time as well. These include your general utility bills like internet, telephone, gas, etc. Punctuality is one of your best traits. This helps you save on all those late payment penalties and therefore, you end up saving more than others.
Additional Reading: Paying Utility Bills Online!
Insurance? You’ve got it covered.
Not just savings and investments, you have the insurance factor under control as well. You know which insurance plan suits you the best and have already opted for it instead of waiting for the right time.
Additional Reading: 5 Things To Keep In Mind While Buying Term Insurance
Liabilities? Ummm, no thanks!
You’ve got the art of money management so under control that terms like ‘liabilities’ just don’t exist for you. Whether it’s paying your Credit Card bills on time or avoiding any kind of unnecessary debt, you know how to handle it all.
The secret? There’s no secret sauce as such. Just that you’ve learnt ways of living within your means. No matter how tempted you feel to shop online all the time, you know how to resist such urges. That doesn’t mean that having some liabilities is a big no-no. The real magic lies in managing them all well without letting them affect your day-to-day routine.
If you have a couple of loans to repay, that just shows you’ve planned ahead for your future. You’ve already purchased a house, car and have your education sorted out as well. These are the major achievements of your life. Having them sorted, especially at an early age makes you the master of money management.
As long as you can manage paying those EMIs off comfortably without having to strain your monthly budget or curbing those temptations to go out for a fancy meal with friends, you’re sorted. Bottom line? If you have no liabilities at all, great! But, if you have a couple of them and you’re managing just fine, even better!
Additional Reading: What Is EMI And How Is It Computed?
So, what do these signs tell you about your financial habits? If you find that you exercise these habits on a daily basis, awesome! You don’t really have any reason to worry. Your financial life is quite sorted and so is your future. But, in case these habits are alien to you and you seem to be struggling with your money management skills, don’t worry! You just need to do some things differently and your financial life will be back on track.
Do tell us what these signs say about you in the comments section below. If you’re looking for the best way to save better and ensure a safe financial future, you must think of investing in a Fixed Deposit. Why? It might be a conventional approach to savings, but it definitely works! Try it out for yourself and before you know it, you’ll see your money grow.