Three Things that Signal You're Not good with Money
Being good with money is something we all like to believe that we are good at, but in actuality a majority of us are doing things everyday that are costing us money. Here are three signs you are bad with money.
You consistently pay $4 for a coffee or $15 for a salad, and can justify it to yourself. First let me start by pointing out that word, consistently because lots of people are going to miss it. If you buy something for lunch or an expensive drink every now and then there is nothing wrong with that, but the problem begins when we start justifying and normalizing the $18 salad we had for lunch. Food is going to be one of your biggest costs throughout the week, but by bringing your food with you you'll most likely be eating healthier and saving money.
Side tip. Apply this idea to anything you buy in life. The new iPhone that is now $1,000.00 at a base price, but we’re ok with that because well the features are just so great. Don’t allow companies or businesses to normalize higher prices if you can have something to say about it.
You wake up every morning, and you didn’t make any money last night. If you go to sleep with a certain amount of money in your bank account and that number has not grown when you woke up then you are not good with money. This doesn’t mean that you physically should be working at night or have a second job, but what it means is that you really need to start developing passive incomes. Whether that be through real estate, the stock market, businesses, online sales, or anything in between doesn’t matter, but there should never be a moment when you are sleeping where you money is also sleeping.
Pro-Tip. Money in the bank is not good because a $1.00 when I wrote this article is probably wroth at $0.90 cents now, two days later. Money in the bank maybe money saved for tomorrow, but never confuse is it as money saved is money made.
3. You spend it on anything other than making yourself happy. This one is hard for a lot of people to understand, and many people think that giving money to family, friends, and your kids falls into this idea. They don’t because what makes you happy is subjective to the individual, if you want to watch your son/daughter learn to play the piano at $100/hr and that makes you happy, that’s money well spent. The idea here is that you should never be spending your money on things that aren’t directly going to help you in life. (A friend being happy can help you by making your happy, a kid buying a house can help you feel better about the future, or you lending money to family may help them put food on the table which makes you happy). The return on your money doesn’t have to be a physical thing that makes you happy, it can be just an emotional thing.
So are you spending your money, are you normalizing big amounts, and how much is the money that is sitting in the bank worth right now (less than when you started reading this article). Answering these questions and truly addressing them can really help you to actually become good with money.
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