If only I made more money is usually how a sentence starts when someone is trying to figure out how others have mastered their finances. But if you asked money-savvy people what their secret to financial bliss is, they’ll have a simple answer that typically has little to do with one’s income.

The answer is that financial independence is based on three simple practices. Without these habits in place, reaching financial wellness is a difficult and seemingly unattainable goal.

Let’s start by going over some character traits of money-savvy people. Do you have these traits?

Characteristics of Money-Savvy People

Honest with oneself. Being honest about your finances allows you to identify past mistakes and confront bad spending habits.

Mindful of the future. Living in the moment isn?t a valid excuse for not living within your present financial situation. Remember? careless spending and borrowing today has future financial implications.

Detailed. Money-savvy people know every financial detail of their lives, from their take-home pay to the true cost of their lifestyle. This helps them live within their means and prevents them from spending money that they don’t have.

Informed on needs. Knowing the difference between needs, wants, luxury, and indulgence is a key aspect of managing money wisely. Money-savvy people don’t necessarily ban the purchase of the best brands, but know what is affordable and within their financial means.

Determined to save. Want to mimic a money-savvy person? Make deposits into a savings account as if it were a required monthly bill payment. Prioritize saving and make it an ingrained habit.
These characteristics lead to sound financial practices, such as budgeting, monitoring one?s credit, and shopping for the best products and services.

3 Financial Practices of Money-Savvy People

  1. Budget. Budgeting can be done using a simple spreadsheet or a robust online program. Money-savvy people use budgets to create a lifestyle built on sound financial practices?not borrowed money. If you keep checking and adjusting your budget, it?ll help you understand your true financial situation and guide future financial decisions.
  2. Monitor. A credit score is a good measure of financial health. Monitoring changes to your credit score can alert you to changes in your credit reports, which will help you dispute inaccuracies in a timely manner and lower the risks of identity theft.
  3. Shop Around. Similar to shopping for bargains, money-savvy people shop for financial advice, information, and products. They know that terms and conditions can change, so they periodically evaluate existing relationships. Keep an eye out for new banking options, better interest rates, credit cards, and insurance plans.


We all want to make better decisions that can lead us to financial independence. By following the practices of money-savvy people, you too can reach your state of financial bliss sooner rather than later.

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