5 Things Money-Savvy People Always Do (No Matter What)

You know those people who never seem to struggle with their finances at the end of each month? They’re the ones who’ll likely cash in their stocks and savings to retire into a sea of green (dollar bills, y’all!) when the rest of us are still trying to figure out stocks and savings.

We want to be like those people. So, without further ado, here are five things money-savvy people always do that we less money-minded mortals should pick up post haste.

When was the last time you really pored over your bank statement? If you’re a money-savvy person, the answer might be “today.” But many of us take a much more laissez-faire approach to our finances, which means lots of cash could potentially be slipping through the cracks. Keeping track of expenses, automatic drafts, and personal expenditures ensures you know exactly where all your money goes.

If we told you that you could be making free money right now, you’d be pretty stoked, right? Well, prepare to get pumped. While most of us know about 401k programs, apparently most of us are not taking absolute advantage of our employer’s 401k match – a program by which your company will match whatever contribution you put towards your 401k (usually up to a certain amount). According to Business Insider, only 16 percent of the work force age 25 and under participates in a full 401k match. If your employer will match up to 5% of your annual salary, but you’re only contributing 3%, that’s money you’re leaving on the table.

There are the obvious reasons for paying more than the minimum balance on your credit cards, such as keeping your FICO score intact and lowering your overall debt level. Then there are the reasons we tend to overlook like, for starters, the fact that paying more than your minimum balance keeps your credit utilization ratio in check. The amount you owe on your card compared to its limit, this ratio affects your credit score and can lead to higher interest rates.

In today’s society of instant gratification, it’s all any of us can do to resist the urge to buy with reckless abandon. And while splurging on yourself every now and then is OK, money-savvy people know that something that is truly worth buying is worth the wait. To that end, they steer clear of impulse purchases and “sleep on it” before making any big investments.

It sounds so obvious, eh? Still, who among us can say they’ve never toed the fine line between what they can really afford and what they really want? But living outside of your means is a surefire recipe for stress – not to mention financial strain. People who are good with money have a firm grasp of the fact that creating a budget and sticking to it is crucial for building wealth long-term.