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

Desperado99

Both myself and OH are good with money, but each due to differing upbringings:

My parents worked hard, but money was always tight - every pound was hard won, so they had to budget very carefully to make ends meet.

His parents were on a better income, but frittered it away and had tons of debt problems.

Somehow we have both managed to have the same outlook on money - we are definately savers not spenders, we don't have credit cards and we save for major purchases (it's amazing how much more painful it is to buy a sofa with your own money upfront rather than 'buy now pay later').

Syman

I like to think i am good with money. Probably down to "upbringing"

Bunting wrote: »

My parents worked hard, but money was always tight - every pound was hard won, so they had to budget very carefully to make ends meet.

This pretty much sums up my situation. Pocket money was not often available.

I got a paper round at 12 ish, also helped the milkman deliver from the end of my round back to home for a few bob. Then worked in a local market, and have only been out of work for any extended period by choice (i was made redundant and decided to take a year out as DD was only 3 at the time)

I do not have a mortgage, and i live in service tied accommodation. The rent i was paying for my previous home is still leaving my account each month, but being paid into another savings account. I still however shop around for the best utility deals.

I actually pay for everything with my amex cashback card, but have a monthly DD to pay it off.

I cannot recall even going over drawn.

I like to think that i have managed to strike a good balance between "thriftyness", forward planning (i won't be in this job forever) and a good life balance. we manage to get away twice a year, one main holiday, and one deal from the Sun, or the Mail this year.

But even with all the planning things can go a bit off. I ordered a brand new car, then got this job, so no commuting. in 5 years the car has done less than 10k miles.

GreyQueen

I remember many sayings from my Grandmother who was an accountant:

1) Look after the pennies, and the pounds will look after themselves
2) It's only a bargain if you need it
3) If you haven't got the money, don't buy it

These essentially boil down to what most people have said already, which is:
only buy what you need
get the best deal you can
don't spend money you don't have.

I'm in total agreement with charles_b's grandmother's philosophy, as expressed above. My Grandma always said, "If you can't tell want from need, want will be your master." Water is a need, cola is a want, and so on throughout life. I see the majority of people around me lurch from crisis to crisis because they spend all their salary in 2 weeks and never have anything put by to ease life's inevitable lumps and bumps. Without a cash buffer, any hiccup sees them into the red. I guess from the outside my life might look dull but I'm happy, the bills are paid and there are no debts. Perhaps I skipped back in time somewhere and managed to avoid the Loadsamoney/ spendthrift values and hang onto older ones. Best be off to my natural habitat in the OS boards now.

jezebel

I'm not sure what makes me "good with money" although I think that upbringing has a lot to do with it, and certainly I am glad for the positive education my parents gave me, I also think that luck is a factor (certainly in my case) as when I hit longer terms of unemployment (once through laziness and once through ill health) I was able to live off my savings and move home to my parents where i wasn't paying over the odds for rent. I'm also lucky in the sense that I earn enough and live within my means to save some at the end of every month (I know this is not the case for everyone).

I think planning and budgeting are also key factors, if you are a planner then you'll plan out spending and budgeting and consider this. If you're not then you might buy something on a whim without thinking of the consequences.

I grew up with the mantras/sayings that others have mentioned too, one other that stands out is the story of Joseph and Pharoah (seven fat cows, seven thin cows etc!) where you save in the years of abundance to feed the years of famine. This always made sense to me.

MSE_Martin wrote: »

"too worried about the value of what is on offer to actually get the right balance between enjoyment now and enjoyment at some future date" and "pushing too hard means you curtail your life" Martin

This used to be me!

Everyone tells me that this isn't a bad thing (because I'm therefore good with money) but when you have to spend half an hour deciding if you should really spend money on a sandwich whilst out or if you can go without a meal then it's not good!

I've found that the money mantras have helped me with this guilt related to spending anything - especially "Will I use it?" because I now think about the use I'll get out of something vs not having it and it lessens some of the guilt related to spending

trying_2_b_good

From being about 5 - 10 years old, my Grandad would take me to the bank whenever I saw him. We would stand in the queue and then have a nice chat with the lady behind the desk, then deposit my £2. I used to love looking at my savings book with all of the printed lines & my balance going up. The promise of a fantastic toy after weeks of patience became less important to me than the simple joy of spending this time with my Grandad. I think that's where my love of saving began!

However, my brother also had this, but quickly chose to spend his money on comic books & subuteo rather than saving. So personality definitely has something to do with your spending habits, not just your upbringing. I just hope my kids (when I have them) take after my personality and not his!

flikkerty

I wasn't always good with money. Sometimes you need to have hard times to make you realise you need to change. I appreciate money more and its value now, I have Martin to thank for this.

simon_the_saver

Must be: I remember being 'careful' (ie tight) with money when I was seven or eight, whereas a close sibling spent every penny as soon as she had it...

In later life, I think it also relates to self-esteem; be happy in and with yourself, you're not likely to try to buy favour or want to 'keep up' with other people.

Tipps

Interesting reading Martin's blog and reading comments about what makes people good with money. I think a big part of it is undoubtedly to do with your early upbringing, having a more than a passing interest in figures and being 'hard wired' to save rather than spend. The other factor is classic common sense - simply not spending what you can't afford and why pay more?!

My dad always encouraged me to save - as far back as the late 1960s he opened a post office account each for me and my brother and promised that whatever we saved up and paid in, he would double the amount. I don't come from a well off family, far from it. The small amounts of savings gradually grew to £100 and I considered this a fortune. I got a part time job at Sainsbury's when I was 16 and by the time I went to university in the late 70s there was about £300 in my savings. I never got into debt as a university student (those were the days!), worked in the holidays back at Sainsbury's, then spent 3 years as a postgrad. These days, through choice, I have what most people would regard as a poverty level gross income of well under £20K but am very comfortably off on it. I don't have kids or a partner but a busy social life. It's easy to save money when you don't have children!

I've kept personal accounts for the past couple of decades, always had a firm handle on what I earned and spent and even when I cut my income in half a few years ago, I still managed to save, have a good time, have holidays etc. Haven't moved house since 1997, paid off my small mortgage about 3yrs later. Sometimes you're lucky and you have to make the most of that luck. Mottos: don't be greedy, save for things, buy good quality, look after them, use credit cards continuously & to your advantage but always, always pay them off in full.

from.york

In some parts of Yorkshire you'll hear someone say "I just can't thoil that," meaning "I'd like that - I can afford that - but do I really need it?" It's something that's stood me in good stead when shopping. Perhaps if more people stopped to ask themselves, "Can I thoil it?" it would give that bit of thinking time to stop the impulse buying.

cepheus

I suspect that financial competence is more concerned with the ability to suffer delayed gratification (such as saving now to avoid the need for loans for example) and the more general tendency to worry about the future. Another factor may be ones attitude to consumerism and materialism. If you need to be surrounded by the latest gadgets and fashions, which are usually extortionately expensive, then your financial affairs are likely to come under greater pressure.