10 Simple Ways to Become More Mature With Your Money
Financially mature people avoid costly mistakes that keep them broke or trapped in debt. If you want to achieve financial success, you can learn a lot from the habits of people who are mature with their money. Adopting these habits will make you better with your own money.
A sign of financial maturity is having financial goals. Know what you want to accomplish with your money in the short-term and the long-term. Write your goals down and create a plan for reaching them. Track your progress toward reaching your goals to be sure they happen. Your financial goals may change throughout time and that’s ok. The important thing is that you set goals to reach.
You can’t get ahead financially if you always spend everything you make. It’s worse if you’re spending more than you make. In that case, you’re driving yourself into debt. Living below your means leaves you with money that you can put toward your long-term financial goals. You’ll have extra money to put towards savings and pay off debt, two things that financially mature do.
Financially mature people don’t just wing it throughout the month. Instead, they prepare for the month by creating a budget for their spending. Total your monthly income and then subtract your total monthly expenses. If the result is negative, you have some trouble. That indicates your expenses are above your income. You’ll have to reduce your spending to avoid spending more than you’re making.
Creating a plan is only the first part of being financially mature. The next part is to be sure you’re sticking to that plan. You can’t wait until the end of the month to see how you’re doing. Track your spending throughout the month to see how you’re progressing toward your budget. If you check your spending throughout the month, you can see early on if you’re spending more money than you’ve planned to.
Late payments are expensive and bad for your credit score. Whether you’re paying late because you don’t have enough money for your bills, because you’re procrastinating, or because you’re not organized with your bills, you it’s a bad habit that you have to change. Creating a budget is one step toward ensuring your bills are paid on time. Setting up automatic payments is another way to make sure your payments are on time each month.
Medical bills can be thousands of dollars. Without good medical insurance, you could end up in a ton of financial trouble if you get injured or sick. Even if it happens at work, Social Security disability will only cover so much, and you could end holding the bag on the majority of your medical expenses.
Medical debt is the top cause of bankruptcy in America, because healthcare is so expensive. You want to avoid ruining your finances because you don’t have insurance, especially when you had the opportunity to get insurance and didn’t take it.
The point of creating a budget is to be sure you’re making the most of your money. Financially mature people don’t let their emotions lead them into financial decisions. You must be strong enough to resist impulsive spending because you know the impact it can make on your budget and your financial goals.
While eating out is certainly more convenient, it’s very taxing on your wallet, especially if you eat at restaurants several times a week. Not having cooking skills isn’t an excuse not to prepare meals at home. Between the internet, cooking shows on television, and YouTube videos, you can teach yourself to cook. Start with a few basics and then expand from there. You can save hundreds of dollars each month by cooking at home rather than going to restaurants for the majority of your meals.
Not only should you get into the habit of cooking more meals at home, you should also take advantage of leftovers. You can prepare meals for several days in advance and have food to eat when you’re ready. At a minimum, you can take leftovers to work for lunch the next day.
Scammers are everywhere trying to trick people into giving up their money or their financial information. While scammers are always coming up with new tricks, financially mature people can detect scams because they all have some things in common. For example, scammers often try to trick you into paying for things via wire transfer or other untraceable methods.
Scammers may also use fear tactics to trick people into giving out their credit card or social security number. Approach everything with a healthy dose of skepticism to avoid falling for scams.
No matter your chronological age, you can always adopt new habits to raise your financial maturity. Getting rid of bad spending habits seems scary, but as you adapt to a new way of living, you’ll be glad to have more control over your money.
Susan Ranford is an expert on career coaching, business advice, and workplace rights. She has written for New York Jobs, Disability Justice, and Pond Lehocky. In her blogging and writing, she seeks to shed light on issues related to employment, business, and finance to help others understand different industries and find the right job fit for them.
Like this post? Don’t forget to share it!
Also check out: