''What is it that makes someone good with money? blog discussion

GreyQueen

Casanova wrote: »

I wouldn't say I was "good with money" - in fact I have an only partially deserved reputation amongst those who know me as being not very good with money. I am highly numerate (being a member of Mensa and a maths graduate) and since finding MSE am quite good at getting the best deal/maximising cashback etc. I keep a detailed account of every penny I spend by area, but it is the self-discipline aspect, making decisions on what I can and can't afford, that I fall down on. The devil on my shoulder always cries carpe diem!

I got chucked out of Mensa over 25 years ago for not renewing my sub but I know other members who make good salaries and yet are constantly struggling with their finances. Equally, I know regular folks with little or no education and who'd cheerfully describe themselves as not-very-bright who make shrewd moves and come out ahead. I suppose it's also a question of emotional maturity, to have the balance to go your own way and not try to keep up with the Joneses. In survey terms, I come out as a Maverick Consumer. Got stopped by a market researcher on Saturday who wanted to talk about my skincare regime until I said "soap and water" whereupon I was of no interest whatsoever! She'd have been even more ticked if she realised that I'm 8-10 years older than most people guesstimate despite my severely low-maintenance beauty regimen.

Soubrette

GreyQueen wrote: »

The big thing that I've become aware of is the ability to defer gratification, which I've noticed is far more important than family upbringing, general levels of intelligence, ability with maths etc. The people who can't do this are constantly at the whim of their impulses and money bleeds out of their lives with little or nothing to show for it. If you can sit back and look at yourself, analyse your weak spots and control (to a degree, anyway) your impulses, you'll be a better money manager if not exactly the life and soul of the party.

I am very good at this with money :j

but oh so poor at this with chocolate

Chocolate8me

For me it's easy...

If I don't have it I don't spend it.

If I have got it but don't need to spend it, I save it wisely using MSE.

If I need to spend it, I choose well & use MSE!! :T

bexster1975

I agree with most comments here. I would say I was "good" with money (if we measure it by living within your means). But I had no school financial education whatsoever. My parents were polar opposites as mum would spend money to make people happy - even if she didn't have it - and dad never spent a penny that wasn't absolutely essential (or guilt-tripped/strong-armed out of him by mum!). Dad is still the same as he was, and mum has come around to the idea. They never had a credit card or overdraft when we were at home and they saved for things they wanted. The biggest financial "risk" they ever took was buying bigger stuff (3 piece suites etc.) at 0% when they were desperate for a new one.

My brother and I are only 18months different in age (mid 30's) but he can't keep a pound in his pocket to save his life - never has been able to. Only in the past 5 years I have earned more than him but he has always attempted to borrow money from me. So I have NO idea what makes some people money savvy and others not.

I imagine deferred gratification and the importance of long term security are driving factors.

bexster

redglass_2

If you have a calculator you don't need to be great at maths - I'm certainly not, though I'm generally reckoned to be good at money. I put it down to the ability to defer gratification (as others have already said) and a certain stubborn bolshiness. I refuse to derive my sense of worth from buying 'must-haves' (and find that term completely ridiculous - must have? Says WHO? :rotfl:). I think this is a family thing. I was brought up by poor parents who were focused on putting food on the table. They never bought into fashionable fads and always told us kids that it's not what you have, it's who you are, your personality and character. I found this hard as a child but now I am deeply grateful for it as it has liberated me from buying loads of useless junk and running up debt. I've had a friend walk out of a store in embarrassment when I went to ask for a discount on a multiple purchase, but the assistant was nice as pie, allowed the discount and apologised that it wasn't bigger. My friend paid full whack for her basket...

Stuart_W

What makes someone good with money?
Mr Micawber (in David Copperfield) "Annual income £20, annual expenditure £19 19s 6d, result: happiness; annual income £20, annual expenditure £20 0s 6d, result: misery."
Mr Hock (inventor of the Visa card, when quoting the above) "You know, there's still a lot to be said for that."

If you don't have it, don't spend it. That what makes someone good with money, whether rich or poor.

curlywee_2

I was given a Pocketmoney Book when I started Secondry School. It had a Page for each week. It was like a bank book with a running total. Money in and money out, with an explanation for each entry.
Eg £1.50 Cinema (yes it was only £1.50 inc. Bus Fare) and it also had a monthly page for Clothes Money, I had to show reciepts to prove I had actually spent the money on clothes, £10 per month. It meant i could carry money over. It also had a page for savings, 50p per week, so if I bought a birthday/xmas present for someone, it came out of that money. I was allowed to go into debt but only for a month then I had to go without until i was back in credit. Needless to say, i am very good with money, I have never really been in debt (apart from the mortgage and the bank of Mum & Dad). I recon that book did the job, I still have it in the loft somewhere!

Barros

Great discussion!

I am the youngest of my family, and earn the least in terms of salary however I have saved the most, and yet still done 'big' holidays, live in a great flat in the city etc

I work Mon-Fri and have ample clothes in my wardrobe (which, dont get me wrong, is very modest) so why buy what I don't have time to wear? I am an active person so once I have my initial outlay for gear everything is free - walking etc. So where my friends spend their spare time eating out/drinking/shopping and spending the cash, I am saving it.

I think that the whole thing hinges on attitude. My bro is carpe diem, and my sister just doesn't care! They have the money to go out and spend on whatever they want. The first thing they see they buy. I have the money too, but I look around and get the best deal. Patience is a great thing!

AliBongo73

I don't earn mega bucks (I work in the public sector), but both my husband & myself are good with money and so have a nice lifestyle. There is much to be said for only buying what you can afford - sadly the want it/have it temptations are too much for a lot of people, especially if you get your kicks from possessions rather than recognising relationships with others as far more rewarding. What worked for me was having a modest amount of pocket money and a clothes allowance as a child and parents who had the good sense to stick to this, ie not bail me out if I wanted more, so I learnt to live within my means. If kids don't learn it at a young age, then credit cards, loans etc end up bridging the gap for a lot of people. I didn't get involved in buying rounds in pubs, take-aways at Uni nor holidays I didn't have the money to afford.... instead I bought alcohol to drink at home, cooked my own meals and went on volunteering holidays... there are alternatives which can be just as nice, and now I have a lovely home to show for my efforts

Angela41

I consider myself as good with money, though occasionally penny-wise pound foolish. I paid off my mortgage by 37 and currently enjoying time off work bringing up two young boys alone, living off my savings which means I am not entitled to any benfits which will leave me very short in later life (so have a very big chip on my shoulder). A very unusual case, one not experienced by my local MP or the Daily Mail's Business Editor when I was bemoaning that 'all' sympathies were with pensioners during the interest rate crash, yet I wasn't going to get a chance to loose my pension fund spending it now. Anyway my point is, part of me regrets being "good with money" as being frivilous or perhpas spending money on a great hobby brings adds to the memories and these are important too. I wonder If I would be a good case for Martin, as my MP states I am in a very small minority.