After studying personal finance for the last eight years it seems that those who have their finances under control possess a set of core traits that escalates them into financial superstardom.
Want to pick up some of those characteristics yourself? Here are seven traits of money smart people.
The Ability to Delay Gratification
I went back and forth as to whether name this one sacrifice or delayed gratification. I ultimately decided that delayed gratification was hands down the clear winner.
Money smart people don’t make sacrifices for the sake of making sacrifices. The better way to look at is “pay-offs.” For instance, not eating out for a year, even though you love the Mexican restaurant down the street, so that you can save that extra cash for a down payment isn’t really a sacrifice when you know you’ll be getting something so much better.
Those trade-offs like living on a budget, driving at ten year old car, and not shopping for clothes are all for the greater good of what you’ll eventually be getting.
In a world of instant gratification being able to delay that gratification is one of the best traits you can have.
This goes hand in hand with delayed gratification. Money smart people are patient enough to see their goals through.
They believe anything worth having is worth working for.
Financially intelligent people, for the most part, don’t care what other people think.
While their peers might be taking out debt to buy fancy homes, top of the line cars, and tuition for Ivy League preschool they can handle the fact that they don’t fit in. They have enough confidence to know that what they’re doing is the right thing for them.
It’s important to note that while they have high self-esteem they are not in the least bit arrogant.
Money Smart people do not claim to know everything. They understand that they aren’t always the smartest people in the room and are eager to learn from those who have done better than themselves.
While managing your money well is definitely a great trait to have you wouldn’t be able to look at most of these type of people and know that they are, to some degree, wealthy.
Money smart people normally keep a modest lifestyle.
Future Oriented Thinking
Money smart people think about the future and plan accordingly.
Their financial plans go far beyond how they’re going to spend this week’s paycheck. They know they need to aggressively save and invest for the future while still enjoying today.
All of these traits without responsibility wouldn’t mean much of anything. Those who do well with their finances are responsible – plain and simple.
They know that it makes much more sense to be the odd one out and not have to stress about money than to fit in and worry about paying back ridiculous amounts of debt.
What else would you add to the list?