We would all like to think we are good at managing money, but unfortunately--many of us are not! Good money management is a process, it's not something you are just good at. Now, even if you want to become proactive and become a good money manager, you're going to have to do more than just read a bunch of articles, and it's more than just earning more money.
You have to be willing to take accountability and take that responsibility. You shouldn't wait until your drowning in debt to begin to be a responsible money manager either. If you don't begin to pay attention to your habits and especially, your spending habits--it's easy to end up in a nightmare situation you can't get out of fast enough! So, how do you know if you are a poor money manager? Well, there will certainly be signs. Let's examine some of the characteristics of a poor money manager right now and see if we can find solutions to correct these traits.
How You Can Avoid Becoming a Poor Money Manager
- Not keeping or maintaining a budget is a sure sign you're a poor money manager and this will always set you up for failure. Setting a budget and managing it well is the only real way you can begin to take control of your financial life. Also, don't think because you have few bills you have more reason to spend. The wise thing to do is save your money and plan for the future. Here is a fact--if you don't know how much money you have how can you properly establish and set up a budget? You can't! So, get smart and start making a plan for your money today. Even when you apply for a loan online, make a note of it right away. You have to pay it back after all anyways right?
- You don't have to buy everything new, but there are so many Canadians who fall into this trap. You also don't have to buy name brand either. If you visit a second hand shop, you'll see the quality is still there. You don't want to go broke trying to keep up with every new gadget or clothing fad that materializes. So, don't! New items do cost more, and staying in this bad habit is just no good!
- Stop spending more than you make! Too many Canadians use credit for personal expenses and other unnecessary spending. You don't need to try to pretend you're something you're not and then end up financially blind-sided down the road. Be happy with what you have and start enjoying life without endless shopping! You'll be far happier and live with minimal stress too. Keep this in mind before you plan your next trip. You'll thank us later.
- Are you saving for emergencies? This is also an area that many people don't pay enough attention to. Emergencies arise at one point or another in life--the question is "Are you ready?" Being financially prepared for the unexpected really demonstrates proper money management! Then you don't have to run to a loan agency all the time. Or deal with a direct lender if you don't have to.
If you follow just one of these tips you can improve your financial situation and become a better money manager as well. Don't follow the crowd and end up with the same problems. Be independent and be ready to make a difference in your financial life. As you grow older you'll be glad for making those smart choices now. Looking for more? Check out 10 more money saving hacks.