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IRA Financial Group Blog

Are You Good With Money?

Are you Good with Money?
3 Minute Read

Ever wondered if you’re good with money, or why you’re so bad with it?

Key Points
  • You can be better with money with minimal changes
  • Taking care of your money counts as self-care
  • Budgeting, saving, and spending should be in your plan

What Does Being Good With Money Even Mean?

If you’re looking for financial advice, there’s plenty of people willing to tell you what to do with your money. Invest it here, there, everywhere, on something you don’t believe in, on causes you care about, or keep it in your mattress, like they show in old movies. Feel like you don’t have any money? Stop buying iced coffees and treating yourself to manicures and you can save that money.

But did you notice something? That advice, and most that you’ll see bandied about, tends to be aimed at women. And that’s by design. Most women’s magazines sell on the basis of insecurities, by offering advice, tips and tricks, and assorted pieces of wisdom. It’s one of the traditional concepts of marketing to tell you what you need to do, but it is also standard on being told what not to do.

Being good with money may mean different things to different people, but in general it does have a basic sense that one does not spend more than one takes in, and the bills are paid before frivolities. What else are we discussing when we talk about being good with money? If you have debt, you’re paying it off, and whether you budget by envelope or app you do have a budget.

Save, Spend, Invest

There’s a lot to be said about being very familiar with money, but it’s a skill no longer taught in most schools. While learning to write a check and make a budget may seem like boring topics, it is necessary to know what you’re doing with them, inasmuch as you may need to know how to do them someday.

Being good money can start with something as simple as writing down what you make each week or month, so you have a basic understanding of what’s coming in. Then you write down what your expenditures are, and you balance them together. It sounds simple, but it does obviously present challenges, depending on what you have coming in and going out.

Knowing what you owe for student loans, or mortgage payments helps you budget better.

Working With Your Budget

Being good with money means you should have a firm knowledge of your ins and outs, as well as clear financial goals. Saving for a rainy day with an emergency fund is paramount, as unexpected medical bills or emergency travel expenses can be quite costly. Putting some money away for the future may seem impractical, especially if you feel like you don’t have enough money as it is. But making regular payments to yourself for the future, as well as a retirement percentage that you’re saving, is important.

Your budget, once set, isn’t immutable, but it does provide an excellent guideline, like a map, for you to follow. You can adapt and make changes as you need, but you’ll even feel better than you would otherwise. Saving for your retirement is more than just a lofty ideal to aim for in the future. Even saving a few dollars a day, and then investing it can increase your returns exponentially due to compound interest, and the power of not touching the principal.

You Are Good With Money

Once you allow yourself to be good with money, you’ll feel better about your finances in general. Your budget will force you to focus on your actual goals, and as you look for ways to advance your financial acumen, you will continue to grow in knowledge and, hopefully, in wealth. Keep your debt-to-income ratio low, be aware of where your money goes, and look out for yourself because you are your responsibility.

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