Everyone can be good with money.
And those who currently don’t consider themselves to be can learn plenty of things from simply observing and copying the habits of the money savvy people they know. Here are some of these habits as shared by money coach and author Lynette Khalfani-Cox.
Smart Spending
According to Khalfni-Cox, people who are good with their money are not afraid of unplugging from ‘consumer culture’. While another person will go broke to buy the material side of success, from expensive cars to designer goods, a money savvy person knows not to buy just anything that comes their way even if they have the money to spend.
She uses billionaire and investing wiz Warren Buffett as a good example of a person who’s smart with their money. Despite having a jaw-dropping net worth of $79.9 billion, the 89-year-old surprisingly lives in a relatively modest house that’s worth a mere .001% of his fortune.
Another defining trait that money savvy people possess is that they don’t chase after brands when shopping. What they do is go for deals and value while at the same time finding quality products which will last longer. As Khalfni-Cox put it, people who are smart with money will spend more on something like a $500 bag because they’re hoping to use it for 10 years or so.
Experience Over Things
Another habit that money savvy people have is preferring to spend their money on experiences rather than on an object that they could potentially show off. Interestingly, millennials are an age group who have been observed to practice this.
According to a survey done by Business Insider, more than 25% of respondent millennials said that activities that bring them entertainment like watching concerts, movies or going on happy hours is something that would bring them the most joy after a rather rough week.
Planning For What’s To Come
Most importantly, people who are good with money tend to plan for the future whatever route they choose. As Khalfni-Cox advised, people shouldn’t be so oriented on the present but on what’s coming ahead.
They can do so in a variety of ways from investing to saving to even consulting with financial planners. What more, money savvy people realize the importance of buying the services of people like money managers and accountants in helping them expand their wealth and maybe also guide them on ways to increase their income. And looking at the bigger picture, they see the availing of these services as sort of investments in themselves.
Speaking of investments, money savvy people have made both investing and saving a habit even without waiting for a salary raise or to have a bigger lump sum to invest.
