Do you have a “bad with money” reputation? Maybe you’ve made unwise money decisions. As a result, your friends and family may feel that you’re a bad money manager. Although it might be hard to lose this reputation, there are ways to prove to everyone — and yourself — that you can manage your finances. Here are seven ways to lose your “bad with money" reputation.
1. Stop Asking for Loans
If you want to lose your “bad with money” reputation, stop asking your friends and family for handouts. The fact that you always need money says a lot about your financial condition. And as a running joke, friends and family may make comments about your finances. If you want to prove everyone wrong, learn how to manage financial issues on your own.
2. Pay Back Your Friends
If you borrow cash from friends and family, make every effort to pay these people back. If you have a reputation for being bad with money, these people may never expect payback. However, if you show up with cash and state that you’re repaying a past loan, this will gradually change their view of you.
3. Stop Telling Your Business
In all likelihood, people know about your personal finances because you're always blabbing your mouth and revealing too much about your financial state. It's okay to be honest with people, but you don't have to share everything. For that matter, don’t tell people how much you make or how much you owe, and don’t share your irresponsible money habits.
4. Open a Savings Account
To prove to yourself and your family that you can manage money, open a savings account. But it isn't enough to open an account, make sure you put money in this account each week or every other week. Deposit 10% of your pay, and always deposit a percentage of free money into this account — such as work bonuses, gifts and tax refunds.
5. Pay off Credit Cards
For the time being, only use cash when making a purchase. Put your credit cards in a safe place or cut them in half, and start paying double or triple your minimum payments. If you can eliminate debt, this is a surefire way to lose your “bad with money” reputation. And with your debt gone, your credit score will increase.
6. Create a Budget
Maybe you're bad with money because you don't have a budget. Budget is not a dirty word. Quite the contrary, a budget can help you stay on track financially throughout the month. With a budget, you can assess what's coming in and what's going out. Therefore, you know how much you can spend in certain categories, such as groceries, entertainment, transportation and more.
7. Generate Extra Cash
If money earned from your job isn’t enough, look for ways to bring in additional cash. Perhaps you can work part-time after work, or start a side business and turn your hobby into a cash-generating opportunity. Another option is to seek other employment opportunities. If you look hard enough, you might find a job that pays more and offers additional benefits.
Getting rid of a “bad with money” reputation doesn't happen overnight. But as you make wiser choices, and as your finances improve, others will take notice.
What are other ways to improve your money reputation?