Someone who is good with money doesn’t always have six figure sums in their bank account or a million dollar share portfolio. Rather, they have identifiable qualities that reflect their ability to meet their needs, plan for the future, and still enjoy life today.

For anyone wanting to learn how to develop and maintain good money habits, transform negative mindsets, and budget for an ever-changing financial situation. Here are some of the qualities common to people who are good with money.

1. Goal-driven

Balancing today and tomorrow (and future beyond) can be tough. But people who are good with money know how important planning for the future is.

They start with questions like “What are the most important things in my life right now?” “If money was no object, what would I want to do right now?” And “How do I envision myself now and when I finish working?”

Establishing a well-defined goal, whether it’s buying a house with a 20% deposit or retiring with $1 million in Super, and breaking it down into smaller milestones can do wonders for escaping an “all or nothing” mindset many people have.

When you start to see your wealth growing, whether it’s your savings account balance or investment account or both, you get excited. And the more excited you get, the more you want to do it. And then it becomes kind of fun to save money.

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2. Value-driven

If your goals set the path for spending and saving your money, your values are the framework that keeps you on track from day-to-day. This is why, identifying what’s most important to you financially and generally in life can help automate your decision-making.

You might value quality time with family and friends, staying out of debt, financial independence, travel luxuries, or any number of things. The key is making sure those values are not in opposition to your goals.

For example, if you value comfort over cost and spring for a business-class ticket on most flights but have a goal to retire early on an average salary, you need a rethink because you’re likely to work till you’re seventy.

To ensure that saving and investing for the future are priorities, you need to first think about what’s most important to you when it comes to spending and then be creative about managing your expenses to make room for it.

3. Self aware

People who are most successful in maintaining financial success long term are really individuals and couples who are taking accountability for their financial situation.

They don’t blame other people or other situations for their financial situation, and they always maintain a household cashflow statement for what they have coming in, where their money is going, what they’re spending their money on.

Having a budget doesn’t mean you will never make mistakes. But getting bogged down by your mistakes and attaching an identity to them like claiming you’re an over spender because you have a tendency to fill up your trolley on an unplanned trip to Coles isn’t holding yourself accountable.

The more productive approach is to understand why you have those tendencies and set boundaries to avoid repeating them. Maybe start by writing a shopping list and only buying what’s on it.

You can gain perspective by examining your strengths and your challenges within yourself and in your environment.

4. Efficient

People who are good with money know how to use automation to make their lives easier, whether it’s setting up direct debits for their monthly bills or setting up an auto transfer matching their pay cycle into a separate savings or investment account.

By putting savings and investing on autopilot removes not only effort but emotion, which can pose a huge threat to long-term performance and wealth creation.

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This article does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.