7 Habits Of Ordinary People Who Are ‘Good’ With Money

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7 Habits Of Ordinary People Who Are ‘Good’ With Money

How switched up my habits and took control of my finances – and you can too!

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Do you ever wonder how some of your friends, family members, and workers just seem to have ‘more money than you — Despite you knowing that your salaries and situations are roughly the same? I used to.

I would sit at dinner with friends, praying my card didn’t decline as I watched them order a more expensive glass of wine at ease or immediately Venmo cash to our friend for tickets to the latest concert — while I would make excuses, buying time to wait until my next payday.

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When I hit 26, I reached my lowest point. I was always on the backfoot, always struggling in that last week (or 2) before payday rolled around. There was so much I wanted, but I felt like my dire financial situation was holding me back big time. The stress was all-consuming, until one day I broke down to my friend, who luckily, gave me a bit of tough love.

She pointed out that I actually made equal to, and in some cases more than my friends, however, compared to them, I didn’t really have anything to show for it — no real savings, no investments. I didn’t even have any big holidays or life experiences as an excuse for not having any money.

The problem wasn’t so much my income. The problem was me.

Well, me and obviously the ever-increasing cost of living, stagnation of salaries, and a capitalistic culture that has brainwashed us all into thinking that fulfillment is something that can be obtained through the mass purchase of material objects. But hey, I can only really fix the ‘me’ problem.

“But I’m I creative, I don’t know anything about financial planning or stocks, or bonds”, I complained.

She laughed.

“You’re not even at that point, Elsa, you don’t even understand the basics and in any case, a person is not ‘good’ or ‘bad’ with money it’s all to do with habits.”

Habits. On hearing that word my mindset began to shift. I had what Oprah would refer to as an ‘Ah-ha’ moment. Like everything, our habits form our reality and shape our lives. A person doesn’t have a tidy house because they are ‘good’ at cleaning, they have great cleaning habits.

And with that I began, little by little, to make the following changes to my habits towards money — training myself to rethink and in many cases forcing myself to confront difficult realities head-on and tackle them.

  1. I learned not to be afraid.

Old Habit: At the peak of my bad money habits, I actively avoided any and all reminders of my financial situation. Bank balances went unread, credit card statements were avoided, receipts collected in the bottom of my handbag — I had no idea what I was spending things on, I just kept swiping until my card declined.

New Habit: I took control. As painful as it was to fully come to terms with my financial situation, to see my latest credit score, you can’t fix a problem unless you understand the problem. So, after a little glass of wine for courage, I spent an excruciating evening trawling through bank accounts and credit cards.

It was hard. But then it was over — I knew exactly where I stood and while I was in great shape financially, I was able to plan my next move. I was able to cancel those automatic payments for apps or services I no longer used, see where I was spending too much ‘cough, cough Uber Eats, cough’, and make lifestyle adjustments accordingly.

I also learned to not be afraid or embarrassed to speak with credit card companies and my bank to set up payment plans that were achievable.

Following on from this first review, I scheduled half a day each month to repeat the process — I now always know what I have and where I am spending it.

  1. I began to appreciate its value.

Old Habit: Have you ever heard the saying, watch after your pennies and the pounds will look after themselves? I didn’t look after my pennies — in fact, I lost a good deal of them! Money was frittered away because who cares about a $3 coffee? Who cares about buying a $7 piece of junky decor that will break, it’s only $7- it’s cute, it’s fun!

New Habit: Me. I care. While I absolutely hate the boomer narrative that millennials need to stop buying avocado on toast in order to be able to afford houses, those little purchases do add up — the sum of which may not get you on the property ladder but will make a dent in reaching your financial goals.

I started to think of my money as my time, after all — I earned it. Is buying some junk novelty mug worth the work I put in to earn that $7? Is it worth the cost of the bigger item the $7 could be put towards? Probably not.

  1. I started to prioritize.

Old Habit: All the things all the time — no regard for what I actually want. Yes to all the nights out and every single party I have ever been invited to. Yes to shows I didn’t even want to see, to outfits I only sort of liked, to all the subscriptions to all the streaming platforms. Yes, Yes, Yes — until the bank said otherwise.

New Habit: No. It’s my personal mantra. No, Thank you. On my income level I just can’t have it all and I need to choose. What is important to me — where should I spend my money and where can I just say no? And no doesn’t mean no to everything, being good with money doesn’t always equate with being ‘tight’ with money — maybe you choose the less expensive wine, instead of the cocktail, public transport instead of an Uber.

Each purchase you make is a decision, a vote, for what you want — make sure it’s what you really, really want.

  1. I got organized.

Old Habit: Last-minute planner, a little messy, constantly losing things. As a result — constantly re-purchasing lost items (like umbrellas), buying lunches I had forgotten at home, or the absolute worse — buying items I thought lost only to find them later on. An expensive way to live.

New Habit: A Sunday well spent, brings content. Putting aside time each week to plan my week and make sure I have what I need, know where I am going (to avoid those pesky last-minute Ubers), and give my days more structure has saved me a significant amount of money and peace of mind!

  1. I discovered there are other ways to be generous.

Old Habit: I love to be generous and my friends in return. From rounds of drinks to splitting the bill (despite ordering the cheapest thing on the menu) and even going above and beyond for birthdays — I spent a lot on my friends and family because I love them.

New Habit: A good friend is far more valuable than a generous friend. If those around you are only hanging out with you because of what you give, then are they really your friends?

Part of this was confidence, learning to say “no I’ll just pay for what I had”, or to speak up and encourage free/cheaper activities for your outings — hikes and picnics over big nights out. There is nothing at all shameful about just wanting to pay your share!

In doing this I discovered that I had used money in many instances to actually build and maintain friendships and so instead I worked on being a better friend — listening, showing up to help with projects (like pitching in to assist in painting a friend’s living room).

Of course, there were a couple of friends I’m no longer close with because I just couldn’t afford to keep up with their lifestyles and that’s ok — You want people in your life who will happily take the bus with you, rather than those that just show up for the limo ride.

  1. I took it day by day.

Old Habit: Start with the best intentions, go all in, make a mistake, fall of the wagon and go straight back to my old ways.

New Habit: Start small, keep it manageable and make those changes little by little. Yes, I will absolutely make mistakes but that doesn’t mean I can’t stop myself and get right back on track.

On average it takes 2 months until a habit becomes automatic — stick with it!

  1. I stopped thinking that ‘something’ would save me and became my own champion.

Old Habit: If you haven’t already picked up from this article, I’m a little privileged — actually, I’m very privileged. I’m not talking private jets or anything crazy, but at 26 I still very much relied on the BOMAD — AKA the Bank of Mom and Dad. They were always a phone call away — a few extra bucks to help cover my rent the week I blew it all on tickets to see the Spice Girls Reunion, a cash injection when I incorrectly filed my taxes and ended up owning more than I had. Basically in an emergency, I could call them with tears and empty promises of paying them back.

Even worse, I had this steadfast belief that some external thing would come along soon and change everything. Maybe I’d get a new job with an incredible salary, I’d write a book and sell it for millions, I’d win the lottery.

New Habit: It’s me. I’m the ‘thing’ that is going to build my future and save myself.

I had to break the mindset that there would be this magical shift and that everything would be ok, without me changing AND I had to break the idea that Mom and Dad would always bail me out — I couldn’t just say ‘oh well, I’ll find the money somewhere and spend everything’ — I had to learn to take accountability for myself.

I changed my financial relationship with my parents, instead of going to them for money, I started going to them for advice and guidance — letting them into the problems early on, so they could advise me on how to get myself out of it.

It was empowering and it completely redefined how I view life and my own power to change things.
I’m assuming if you’ve read to this point you’re probably thinking I am just a spoiled, immature idiot. You’re not wrong, I was.

But that was 7 years ago and as I sit here writing this, my life is completely different — I have great credit, a house, and actual things to show for my spending, like trips and adventures. Of course, I still feel anxious about money (who doesn’t), but I’m in control. Since adopting these habits, financial literacy has really become my passion and I’ve gone on to understand how to invest, plan for retirement, and how to make my money work better for me.

However, it all started with these habits — they changed my life.

CONTRIBUTED BY Elsa Price.

Read More: : 6 Golden Rules of Becoming a Millionaire

Read More: Develop These 5 Habits To Fix 90% Of Your Money Problem

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