Being good with money not necessarily means having a big income, but is mainly about habits, particularly managing spending habits. On its recent article, Business Insider provides us with useful habits of people who are good with money.
Lynette Khalfani-Cox, personal finance expert and author, states that the person who has several hundred thousand in the bank or may even be a millionaire is going to drive a 5 or 10 year-old car instead of buying a new one.
Someone who's good will buy a used car because a new car loses 20% of its value in the first year.
Those who are good with money do not buy home costing more than they can afford. Business Insider contributor Holly Johnson told that she and her husband bought a significantly smaller house than they could have to pursue early retirement and living mortgage-free. Instead of buying a large, expensive house, they opted to spend on experiences, particularly on traveling the world.
Those who are good with money won't pay interest on their purchases. Business Insider writer Elizabeth Aldrich racked up $10,000 worth of debt in her 20s because of her money mistakes. Since then, she's learned from her past and has become good with money. Now, she never spends money on interest.
Those who are good with money are "less interested in brand names or tags and labels," says Khalfani-Cox. "They're more concerned with quality as opposed to quantity." She continues: "I think people who are good with money are often not afraid to go against the grain and to actively unplug from consumerism."
The last but not least, those who are good with money aren't planning to spend lots of money on their wedding ceremony. This helps to bolster the financial savings of the newlyweds.