How do you define being "Good with Money"?

[disney junky]

Some people think this is stretching a dollar. Others think it's being debt free. I've heard others think is means getting the absolute most by leveraging what you have to get more.
Recently, someone was described by an acquaintance as being "good with money" and I wondered what he meant.

 

[holden]

Not living beyond your means and planning for a retirement where money won't be a worry (so you can travel, relax, etc.)

 

[mousehockey37]

There is no definitive answer to this question.

Everyone is "good with money" in their own way.

 

[Pea-n-Me]

I think it probably means doing, or at least striving to do, all the "right" things that you're supposed to do with money.

 

[hopemax]

I interpret it as having a financial plan of attack. When you are prepared for 99% of the unexpected, whatever that might be. I see too many people who don't know how they are going to manage, when a pet gets sick, car breaks down, appliance goes out. Someone who is good with money, I think would approach it as, "It's a setback, but I got this."

 

[LYSE]

Yeah it depends...

But if I ever said someone was good with Money it would mean I thought them knowledgeable on finances,investments retirement and estate planning etc..

 

[Southernmiss]

I think it can also change with your state in life. When DH and I were younger and things were more difficult, we were good with money in that we were able to live within our means with what little we had. We were able to raise our children healthy and having everything they need and a few things they want. And one of us was able to care for them most of the time without using family or sitters. But it was because we were Frugal and shop for bargains in clothing and food and cars and other necessities.

Now that we've had a little more money we've always saved retirement but we've been able to increase our savings. We are working diligently to pay off your mortgage within the next year-and-a-half. And to help our children with college. The next phase will be making sure we are making good choices with pensions and have saved enough for retirement. All while living within our means and not extravagantly.

 

[ronandannette]

Good in what way? Acquiring a lot of it and growing it into more? We've never had much ambition for that. We see money management as an integrity issue so the most important things for us are honesty, hard work and generosity. I consider us "good with money" and we've known both want and plenty.

 

[tvguy]

To me someone who is "good with money" pays all their bills, has everything they need and want, and has money left no matter how small their paycheck is.

On the flip side, someone who is "bad with money" not only doesn't have any money left after paying bills, but has no idea where the money went.

 

[MataHari22]

When I think of someone who is good with money, I think of someone that budgets and doesn't spend more than they earn, saves for retirement and emergencies, pays their bills on time, and doesn't accumulate unnecessary debt.

I definitely do not agree that everyone is good with money in their own way. I know quite a few people who are totally financially irresponsible. Never saving a dime, constantly paying bills late or not at all, and they owe everybody and their mother money. They also cannot seem to prioritize what they should spend their money on.

These things need to be taught starting when they are young, along with other life skills.

 

[low-key]

when its the day before pay day and you go and get a McDonald's, you go dawg

 

[Skellingtonj]

The knowledge, I think is what it is. Understanding how to make your money work for you.

 

[jevs]

To me someone who is "good with money" pays all their bills, has everything they need and want, and has money left no matter how small their paycheck is.

On the flip side, someone who is "bad with money" not only doesn't have any money left after paying bills, but has no idea where the money went.

Exactly this.

 

[Marchand63]

Some people think this is stretching a dollar. Others think it's being debt free. I've heard others think is means getting the absolute most by leveraging what you have to get more.
Recently, someone was described by an acquaintance as being "good with money" and I wondered what he meant.

First the rule

There is no definitive answer to this question.

Everyone is "good with money" in their own way.

No not everyone is good with money. We have one friend who is always hitting people up for 10 or 20 dollars, so no not good with money.

To me it is being able to pay bills, run the household and put some aside for savings.

 

[design_mom]

When I think of someone who is good with money, I think of someone that budgets and doesn't spend more than they earn, saves for retirement and emergencies, pays their bills on time, and doesn't accumulate unnecessary debt.

I definitely do not agree that everyone is good with money in their own way. I know quite a few people who are totally financially irresponsible. Never saving a dime, constantly paying bills late or not at all, and they owe everybody and their mother money. They also cannot seem to prioritize what they should spend their money on.

These things need to be taught starting when they are young, along with other life skills.

I agree with everything you say!

I think I am "good with money" per your definition (and mine), but I also think there's another level of "good with money" that means that the person is a savvy investor, who makes the money work for them instead of just them working for their money. That is where I'm "not good with money." I am too risk adverse. I can't help think that 'good with money' could turn to 'disastrous' in a matter of a few hours.

I also agree that not everyone is good with money. My BIL/SIL earn at least as much as we do, but they're always in dire financial straights (a $100 car repair will throw them for a loop.) SIL always says "I just don't see how other people do it." but they also don't really want advice (so I keep my mouth closed.) One of their problems is that they have an intense need to keep up with the Joneses. Also, BIL always "rounds down" (he does this with money and time.) His idea of keeping track of how much he spent can be off by HUNDREDS of dollars by the end of the day/week/month. -- "Can you believe I got this for only $200?" (It was $299.) or "Your nephew's hockey game starts at noon. Can you come?" (Then you get there and stand around because the game starts at 12:50, not noon.)

 

[richmo]

To keep it short, I'd say something like not feeling that you're living paycheck to paycheck while building up a nest egg so that you don't have to work forever.

 

[morgan98]

I think sometimes being good with money can be confused with having money. It is easy to say being good with money means you pay all your bills on time, have your needs and a few of your wants and are saving for the future. However, there are people who make very little money (think minimum wage job here) that really cannot do that with that income. However, perhaps they are very frugal, stretch their dollar to the max and are always thinking of innovative ways to either save or fill a need they have.

 

[Boardwalk Jedi]

Hmm...no debt, bargain hunter, organized.

 

[jozette]

What a great question! I agree with many of the points above - not spending more than you earn, saving for retirement, etc.

Two things I think are also invaluable:
1) Being able to communicate openly with your spouse/partner/dependents/etc. regarding money. I think this is a HUGE thing to achieve. If you're living with other people in every other sense, but not being honest about your values regarding money then that's an issue. Being comfortable discussing finances in a level-headed and honest way is a very mature skill.

2) Seeking out expert help or advice related to finances. Really, this is admitting that you are not the expert regarding (insert topic here - retirement, debt, etc.). I feel like we're expected to know these things, but nobody really teaches them formally. My husband and I found an excellent financial adviser and his education and advice has helped us make financial decisions and plans for the future.

I think these two items are also a societal issue - nobody really talks about money, but we're all expected to manage and figure it out on our own to a certain extent.

 

[MataHari22]

I agree with everything you say!

I think I am "good with money" per your definition (and mine), but I also think there's another level of "good with money" that means that the person is a savvy investor, who makes the money work for them instead of just them working for their money. That is where I'm "not good with money." I am too risk adverse. I can't help think that 'good with money' could turn to 'disastrous' in a matter of a few hours.

I also agree that not everyone is good with money. My BIL/SIL earn at least as much as we do, but they're always in dire financial straights (a $100 car repair will throw them for a loop.) SIL always says "I just don't see how other people do it." but they also don't really want advice (so I keep my mouth closed.) One of their problems is that they have an intense need to keep up with the Joneses. Also, BIL always "rounds down" (he does this with money and time.) His idea of keeping track of how much he spent can be off by HUNDREDS of dollars by the end of the day/week/month. -- "Can you believe I got this for only $200?" (It was $299.) or "Your nephew's hockey game starts at noon. Can you come?" (Then you get there and stand around because the game starts at 12:50, not noon.)

But, good with money can also mean being risk averse. For me, a person who can no longer work, is on disability and doesn't have much of a retirement savings or investments to gamble, being risk averse is smart. If there is no longer the capability of earning a full living wage, and earning any lost money back, I don't think it would be prudent to invest whatever savings or investments made while working in anything that had a lot of risk. So, I don't always think that being risk adverse means that you are not good with money. Even if you could afford to be risk averse, and you didn't, I still don't believe that would mean that you were not good with money. Every one has their own level of comfort when it comes to risk.

Your examples of your BIL/SIL, are definitely good examples of people who are not good with money. Lol