PUSH Money, 4 Reasons You Manage Money Well

4 Reasons You Manage Money Well

At times do you have a low bank balance? If so, do not be discouraged.

If you, honestly, possess these characteristics, you are financially on the right track.

As we attempt to achieve goals, we must remember that fulfilling a goal is only a portion of the journey. What is included in the journey, and so very worthwhile, is the feeling of accomplishment. Often, because we must overcome hardships along the way, we separate these two distinctions.

At times, we can all focus too much on hardships and the negative toll they take, thus underestimating the power of the journey. Highly successful individuals can become miserable by never celebrating success and consistently chasing another award or objective. The distance between your productivity and fulfillment can lead to dissatisfaction.

To be concise, there is a disconnect between our success and sense of accomplishment. This is true when it comes to our finances as well.

How do you know if you are good with money?

Many believe it is simple to determine your financial stability. Bank and credit card statements and account balances display obvious accountability. However, money differs for us all as we are in different stages of life and have different goals. Our bank balance is better thought of as evidence of fact and current standing than your financial knowledge.

Our current state of national and world affairs makes for trying times to achieve financial goals. Each day, we make financial decisions with more financial products and services at our disposal than in previous times. Steering through these options can be daunting.

Therefore, how can you measure your success to determine if you are progressing with your finances and future planning? Here are a few signals:

1. You are aware of your bank balances.

Depending on the month and your financial decisions, your cash flow may vary drastically from time to time. No matter the balance or your income and expense levels, we should all focus on a positive cash flow.

If you are in a consistent habit of monitoring your cash flow, you are more likely to ensure that your debits do not exceed your credits. As we hear all the time, “live within your means,” and earn more than you spend. If you are in a situation to always save for a rainy day, then you are on the right track.

2. You are aware of your flaws.

Regardless of your financial skills, you do have financial flaws and weaknesses. Our past experiences shape our mindset when it comes to money, as emotions enter our decision-making. If you acknowledge your usual financial weaknesses, you are better positioned to put them in the past.

Maybe you are prone to “retail therapy” when feeling blue. Or perhaps you make rash decisions when challenged with an obstacle when a bit of thought could place you in a better scenario. If you do not recognize your behavior patterns, it can steer you toward significant financial errors.

3. You understand debt types.

Some people are petrified by debt, even the subject of it. Others may be more at ease using credit to fund their daily decisions. Both styles determine their financial future. Individuals who understand and are good with their finances have the wisdom that debt can be good or bad if you know how to play your cards right.

There is a science to making debt work to your advantage, and it is a sign of financial knowledge. Good debt, such as your home mortgage, is debt that will improve your financial positioning long-term. Bad debt, in retail or dining out, leans on the side of consumption or perishable and, therefore, does not have persistent value.

4. You have created goals.

Financial goals vary from person to person. One person’s plan to retire by a certain age could be very different from another person who wishes to pay off a personal loan by the same age. Our goals need not be similar; everyone has a different mindset, background, hobbies, and more. Though, if you wish to take control of your finances, a goal or set of goals is a must.

Financially sound individuals have a plan for their money. These plans are surrounded by goals for saving, investing, increasing revenue, or increasing their annual salary. However, goals by themselves will not fulfill their objectives. True financially driven individuals implement habits and systems with their finances to accomplish their goals.

The message is straightforward and convincing. Whether you are good or bad with your finances is not measured by how much you possess but rather by your common sense, self-awareness, and insight.

If you consistently monitor your cash flow, have created goals, and are sticking to your plans, then you are much better with money than you often think.