1. Financially Literate

Ignorance is very costly.

There are people with huge salaries but who are not familiar with basic financial concepts and still live paycheck to paycheck.

Being familiar with basic financial concepts can be a difference-maker in life.

2. Track Expenses

It helps you reduce impulse spending and find ways to invest and save.

You will identify and eliminate bad spending habits and maintain control of your finances.

Without tracking your expenses, it is hard to reach a level of financial security.

3. Invest Money

Even if you do not make a lot of money, you need to start investing with what you have.

Those who are smart with their money have accounts with their employers such as 401(k) or 403(b).

Also, they have IRAS, HSAs, or even brokerage accounts.

4. Have the End in Mind

People who are smart with money have an end goal in mind.

Whether it is early retirement or financial independence, they know their objective and stay the course.

They refuse to give in to impulse purchases and show signs of having money-smarts.

5. Abstain From Buying at Every Chance

Being smart with money requires having priorities.

Buying electronics or cars while they are still functioning is a waste of money.

You think that you are spoiling yourself.

But you are actually spoiling lenders with hefty interest fees.

6. Spend With What You Have

The quickest way to stay broke is to live a life that you can’t afford with money you don’t have.

If you can’t pay for it, you should not borrow.

Debt is costly but very enticing.

The high interests paid on these bad debts are crippling.

7. Humility

Don’t pretend to know everything.

Seeking advice from experts will help you save money, time, and resources.

If there is someone out there who has done it, be humble and reach out.

You will be surprised how many people want to help and can find solutions.

8. Leverage Credit

Use credit to your advantage.

The goal is to buy appreciating assets where the gain exceeds the interests paid.

This is why wealthy people own properties and businesses.

They use debt so that money works hard for them.

9. Plan The Necessities

Failing to plan is planning to fail.

When shopping, make sure that you have a list of items to purchase.

It is easy to get caught up in frenzied spending in stores or online.

Stick to your budget to avoid unnecessary purchases.

10. Stay On Top of Your Accounts

A lot of people have accounts that they still pay for, but do not use anymore.

Being smart with money is to check your account statements regularly.

This can help you identify subscriptions canceled or not needed, and fraudulent charges.

11. Insurance

No one is immune to accidents or emergencies.

People who are smart with money insure themselves against risks.

Their health, property, and businesses are the priority.

Being smart with money is to know how to preserve what you have.

12. Emergency Fund

Having money available and not spending it, and adding to it is a real-life superpower.

Many people derail their finances and go back into debt due to a lack of emergency funds.

Put money aside even when you do not need it. Emergencies happen unexpectedly.