What Being Financially “Smart” Looks Like

Posted on January 19, 2017 by Guy Atkinson

So often we hear the term “be smart with your finances.”  But what exactly does that mean?  Most of us have a pretty strong grasp on what it means to be financially careless.  We all know that one person who is constantly running out of money, unable to buy things they want because they don’t budget properly, always seems stressed about how they will pay their bills, and overall has a pretty unhealthy relationship with their finances.

Are you questioning whether you’re financially “smart” or not? There are a few key traits that this kind of people all have in common.  Here are the biggest traits of people who are smart with their money.

Keeping Your Debt In Check

People who have a strong hold on their financial fate know that paying debts isn’t something that should be treated as a second priority.  They know that their debt to income ratio needs to be in a healthy range or else they are essentially just throwing their hard earned money to the wind.

Financially smart people monitor their credit score on a regular basis and take care of anything that appears on it that is less than ideal immediately. They pay off their balances in a timely manner.  They don’t believe in overspending and will always live within their means so that they don’t find themselves trapped in a prison of interest.

They know the value of their credit score and make sure that it’s as high as it can be by being a responsible and diligent credit card user.

Keeping Track of Your Expenses

People who are good with money know every single charge and deposit that comes through their accounts.  They never find themselves scratching their heads wondering why they are suddenly overdrawn or where that incoming extra cash flow came from.

These people take advantage of the convenience of technology by using financial apps and online banking.  As long as you are keeping your eye on your statements, there is really no excuse to be out of touch with what comes in and out of your account with all the modern technology that makes it easy to see what’s going on in real time.


One of the best things that you can do for yourself to set a healthy tone for your spending habits, is taking a look at your total projected income, and create a budget for yourself based on that number including all of your bills, leisure expenses, and basic needs.

By creating a spreadsheet for yourself or using financial software or an app, you can stay within your limits each month and make room for more things that you’d like to save for.

Tip of the Day

Time management for Finance Professionals

time management


I’ve just re-read Richard Denny’s fantastic book ‘Selling to Win’, in which he mentions a time management technique that I learnt many, many years ago from an old boss of mine.


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