Welcome to another episode of #MoneyTalks!
If you have been reading some of my articles about money, you probably already know where I got this topic about "money".
One of the things I do with my Facebook account to take advantage of the app is to follow Financial pages to widen my knowledge about handling my money and growing my finances. One of my favorites is The Global Filipino Investors (TGFI) because of their short but educational posts about money.
As I was scrolling this afternoon on my news feed, their post, as usual, caught my attention again. It is about the 8 signs that illustrate that a person is good with money if they have or do them.
When I read the first sentence, I immediately concluded that I am good with money because I am confident that I am already financially literate. When it comes to money, I am very frugal, thrifty, and I would think a million times before I spend my hard-earned money. And as I continue reading the post and saw the poster image included, I became more optimistic because I have already mastered how to be good with money.
Money is very important to our lives because nowadays, almost everything has its price tag. From the food we eat, the clothes we use, to paying a fare to go to the place we need to be, and even to accessing the online world. With inflation, our daily needs are also becoming more expensive as days pass.
Money is hard to get but it is very easy to lose if we don't know how to manage it properly. Sometimes, it is also just enough to buy our basic needs.
We all probably aspire to become financially free where we don't have to worry about where to get money to spend for the following days, and we can do and buy whatever we want.
Thus, here are the 8 signs that you are good with money.
1. You have a steady flow of income
If you are currently employed or working on your own business, then you already have a steady flow of income.
Because I'm still a student, my source of income is in the crypto-verse, from blogging and staking.
For us, read.cash, and noise.cash Content Creators, we only have a steady flow of income if we keep on writing articles and short posts. However, the income is not guaranteed and not steady/stable because we only earn if the Robot tips us or if our hearts have value. Nevertheless, we still can make additional income from these sites within a month if we continue grinding.
2. You know how much you spend
Tracking your expenses is one of the best ways to manage your money well because you know where your money goes. Budgeting and sticking with it will help you to know how much you spent on such things, and if you only spent on important ones. And if you got short of budget, you would know what expenses to cut.
I personally don't know how much I'm spending in a month but I make sure that I'm spending wisely.
3. You plan on making a big purchase
You are good with money if you are not an impulsive buyer and make sure that you consider other factors before making a big purchase.
If you plan on making a big purchase, that also means that you are saving for it and working hard to buy the thing you want, such as when buying a house and lot, or a car.
I too plan on making a huge purchase and I have a timeline for it.
4. You have an Emergency Fund
Every financial advice that I have read always includes having an emergency fund because it is indeed a life-saver.
An emergency fund is different from your savings, which is composed of your 3-6 months and even up to 12 months' worth of your monthly salary or monthly expenses. This serves as a safety net just in case you were fired from your job or when there is a financial emergency. So that even if there is no income coming in every month, you still have something to spend while looking for another job.
5. You can buy things you want
You are good with money and are probably financially free if you can now buy the things you want without any worries or second thoughts. You don't have to think twice if you will buy it or not because you have already worked hard to get it.
As for me, since I am still far from being financially free, I still can't buy the things I want even if I somehow can afford them. I would rather save the money for now than spend it for my wants. I'd buy my needs first.
6. You have insurance
Another piece of financial advice that I usually hear is to have insurance. Health insurance is for your future self to save from hospital bills and other expenses, and life insurance is for your family or children once you pass away, which will replace your monthly salary for a specific period to support your loved ones.
I don't have insurance yet but I'm planning to get one in the future once I already have a stable income/job.
7. You can pay your bills every month
If you can pay your electric and water bill, your rent, and even your internet bills without depending on anyone or having credits to pay it, then you are already good with money.
Paying your monthly bills on time means that you are responsible and are managing your money well because you are spending it on your necessities.
8. You invest to make money
Investing in the right investment vehicle will make your money work for you. If you are currently investing to make money, then it just simply means you already know how to make your money grow.
Since we are in the crypto-verse, there are a lot of opportunities where we can invest our money to make money, or just invest our time and effort to make more cash.
These are the 8 signs that you are good with money. If you have all the signs, congratulations because you are now on your way to achieving financial freedom.
The content of this article is just to inform and share my knowledge but is not financial advice. You do what you think is best for your money.
The information is very good...the rate of those who prefer cryptocurrencies to save has doubled compared to the previous period.