According to Lynette Khalfani-Cox, personal finance expert and author, those who understand how to handle money know that consistent savings, living below their means, and spending their money in a way that grows their wealth is the way to go.
You just need to be intelligent with the money you earn.
According to Lynette Khalfani-Cox, there are certain habits that money experts know that the rest of us just don’t understand:
They don’t buy everything that crosses their path
Khalfani-Cox says that one of the things that money experts say no to consumer culture.
“People who are good with money are often not afraid to go against the grain and to actively unplug from consumerism,” she says.
“Whereas the person who is deep in debt and broke and living paycheck to paycheck might drive a BMW and have designer handbags or some of the trappings of success in terms of material goods, the person who does far better has several hundred thousand in the bank,” she continues.
For those who are good with money, it’s all about living on less than you really need to.
They don’t chase brands
They chase after value and deals instead, as well as searching for quality items that will last.
Even when experts do splurge, they’re thinking about things long-term. Khalfani-Cox says “If they are going to buy a $500 bag or something, it’s going to be like, ‘oh, this bag’s gonna last me 10 years.’”
Khalfani-Cox says “People who are good with money that they would rather have an experience than an item to be able to show off.”
Millennials are increasingly displaying this pattern, and making spending on experiences a priority.
They plan carefully for the future
Money experts plan ahead, whether it’s saving, investing, or working with financial planners.
“People who are not as capable with money are present-oriented,” says Khalfani-Cox.
One of the key differences between good and lousy money handlers in her experience is that those who are good with money plan ahead. “Be strategic in your planning and don’t be so driven by everything today,” she says.
They’re willing to invest in getting financial help
“People who are good with money buy the financial products and services, and buy the team that’s going to help them to gain further wealth,” says Khalfani-Cox.
They see these kinds of expenses as an investment. “The person with a wealth mindset knows that accountant, that money manager, that financial planner, et cetera, is going to help them to double their wealth or to further grow their assets, and potentially their income as well,” she says.
Those who aren’t as good with money feel that they can’t afford this expense, and won’t see it as an investment, she says.
They make saving and investing a part of their routine
Experts don’t wait for a raise or a large gift to save. They make it a part of their routine and using whatever money they have now.
“People who are good with money know that discipline and consistency are far more important than large gestures of any kind,” says Khalfani-Cox.
Khalfani-Cox emphasises even the smallest of contributions are valuable. “These people have made saving or investing a habit and they’re more successful as a result,” she says.
They might save much but they still save
Building wealth is a different situation for those with little access to credit and lower incomes. But there are still things anyone can do.
Someone who is good with money would save even $25 a month. That’s better than nothing.
17th February 2020 18:12