You might be intimidated by handling money, but you must learn how to build wealth. What do you need to do? Here are 20 tips to follow:
Financial goals are the reason you’ll want to learn how to be good with money in the first place. When you have a financial goal, you’ll have the motivation for wanting to be good with money. Before anything else, you want to uncover your motivation for building your wealth.
Setting a financial goal is easy, but staying consistent in keeping up with it is where it gets tricky. You never know what life will throw at you to derail you from reaching your financial goals. But no matter what, you must remind yourself of them to ensure you aren’t disheartened. A financial vision board can help keep your goals front and center.
When you have a financial goal, you also want to determine your financial priorities. For example, do you value traveling with loved ones over general quality-of-life upgrades? This is tricky because you might think you value both equally.
When you’re setting priorities, don’t ask yourself what you value. Instead, ask yourself what you’re willing to live without. For example, you might be willing to forego a phone upgrade for a few years as long as you get to go on that Bahamas trip.
Your budget is your best friend when you learn how to be good with money. This is a plan for your money and how to make every cent work for you. Whether you’re spending it on food, yourself, or not spending at all, it’s empowering to know where all your money goes.
An emergency fund is one of the best investments you can make. Having one means that you’ll have your needs covered if something ever happens to your primary source of income.
There’s no specific number for how much an emergency fund should be. Ultimately, that amount is up to you. Typically, having 6 months to a year’s worth of household expenses will ease your mind. That should add up to about $30,000 to $60,000, but this can vary.
Hard work pays off. If you’re chasing a promotion, there’s no better solution than to give work your full attention day in and day out.
Want to find more reasons to work hard? Check out my article about the real truth about hard work.
The truth is working hard and doing more than what’s required of you won’t always get you what you deserve. Oprah recognized that. This is why she stopped babysitting and went on to work at her dad’s store for better pay.
Sometimes there’s a better opportunity elsewhere. But you won’t get those opportunities unless you put in the work!
The bravest souls don’t wait for opportunities; they make them. Starting a side hustle is not only a great way to earn more money and learn about handling money too. You’ll learn important financial skills, like how to manage income tax and business budgeting.
It’s scary to start, which is why not everyone does it. But if it works out, you’ll be much better at it.
Sometimes, the people preventing you from reaching your financial goals are the ones closest to you. That’s why setting financial boundaries with your loved ones is a great way to protect your finances and relationships.
Being good with money is also a matter of self-discipline. If you know how to delay gratification, like investing your bonus instead of spending it, you’ll be better with money. You’ll also find out what you really need to spend on and what you’re okay with living without.
The wealthiest people are often the most grateful. When you practice gratefulness, you create a positive attitude towards money and blessings. You tend to make good things chase you and attract more money.
It can be addicting to scroll through Tiktok and Instagram reels in your free time. To be fair, there’s a lot of good content out there. However, social media can be a source of financial insecurity. In fact, many people have faked their finances to appear rich to their friends. Consider reducing your screen time if you don’t want to fall down this rabbit hole.
Time is money, and spending a few minutes to pay your bills is still time that could be used elsewhere. That’s why you want to automate your finances to make your life just a bit easier.
Chances are you have some items collecting dust or clothes sitting in your closet that you haven’t touched in years. If you don’t mind selling them, you’ll have some extra money to save, invest, or do as you please.
Being good with money isn’t all about what you have in your bank account and wallet. It’s also about managing your investment portfolio and brokerage account. Building your assets and learning how to invest are two of life’s most important skills.
Even with stocks, bonds, funds, cryptocurrencies, and more, you are your greatest asset. That’s why it’s important always to keep learning skills, like how to handle money. Other important skills you might want to work on include networking, budgeting, self-discipline, and time management.
Some of the best financial advice you will ever read will be in the pages of a book. If you have the time, check out some of the best books for building your money mindset.
Learning how to be good with money isn’t all about learning how to live with the bare minimum just to get by. It means balancing savings and investments with living a fulfilling life. If you feel you’re depriving yourself of something, spend it on yourself occasionally!
Even after reading all these tips, you may have identified some ways to be better with money. That’s why you should also join my money squad! It takes a few seconds, and you’ll receive potentially life-changing financial tips every week. Sign up today!
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Dollars Makes Cents by Shaquana, Financial Coach and Wealth Expert, resources helps professional millennial women of color with the tools and skills they need to eliminate their debt, amplify their savings, and build generational wealth — without having to compromise their lifestyle.
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