Signs you are good with money

Ever paused to ask yourself: Am I actually good with money?  According to finance coach and advisor Margaret Njeri, the answer isn’t always about how much you earn; it’s about what you do with what you have.

When someone is, Margaret says that they live within their means: this means comfortably paying their bills, saving a portion of their income, still affording occasional treats without borrowing, and making intentional choices with spending and investing.

Prioritising needs over wants, not caving to peer pressure, celebrating money wins, staying informed about financial trends, avoiding comparison with others, saying “no” without guilt, and avoiding lifestyle pressure suggest one is financially savvy.

When it comes to a saving and investing culture, what shows financial strength is saving before spending, automating transfers, and earmarking money for specific goals. Margaret insists on striking a balance between saving for the future and still enjoying life in the present without guilt as a strong indicator of good money habits.

“Consistent contributions to savings or investments matter more than the amount as a strong money skill. Small, regular savings build the habit and eventually grow into wealth,” she states.

You can know if you’re on the right path if your investments match your goals, risk appetite, and time horizon.

Paying bills on time also reflects financial health and is a testament to good money management skills of discipline, planning and reliability. Choosing to set and stick to financial goals is a show of focus and discipline. Sticking to a budget is always a sign of being good with money, but Margaret recommends maintaining flexibility, as good money management is about awareness and adjustment.

“Being able to resist impulse spending shows self-control and a clear sense of priorities,” she notes.

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Being debt-free is always a sign of being good with money, but that’s not always the case, as some debts, like mortgages or business loans, can be strategic. She advises on managing debt if you have it, borrowing only for productive purposes, repaying on time, and avoiding high-interest loans.

Several small daily habits reveal financial responsibility, she adds, like carrying a shopping list, comparing prices before buying, or setting aside small amounts for savings.

People who plan for emergencies and retirement are considered good with money. Building on a financial cushion prepares you for life’s uncertainties without falling into debt.

“It proves that you’re thinking long-term, and securing your future is a hallmark of financial maturity,” she expresses.

A person’s mindset toward money reflects financial wellness. Margaret points out that if a person sees money as a tool for freedom and security rather than something to chase or fear, that mindset shows wellness.

“True financial strength shows up as calmness, clarity and confidence about money choices,” she says.

She affirms that people who track their expenses are more likely to be good with money. Tracking, she explains, helps spot leaks and builds accountability.

“Tracking reveals where your money really goes. People who track expenses tend to make better, informed choices,” she says.

Finally, Margaret further notes that someone may need to improve their money management skills in one area but overall still be financially strong.

“You might overspend on one thing but be excellent at saving and investing. The overall picture matters more,” she says.