“Doing good with money” is something we usually do not talk about here in Germany. Maybe your partner or really good friends. But we are not used to talking about money with strangers or in public unless we are the CEO of company or a politican. I can not really tell you why it is like that. Maybe we are scared that others are jealous? Or we do not feel comfortable with it as we try to compare with others?

I am also guilty of not talking about it. But wait, there are two different groups of people. The first one I would call my “inner circle”. People around me I deeply trust. A handful of friends of mine who share their insights with me.

With those guys and gals I am talking about money like it is a usual day-topic. “Shit, this month is tight as for reason XYZ” or “Hah, I invested 200 USD luckily in the SXP coin and made 100% within two days”.

And I remember I chat with a friend of mine about one year ago where we were talking about real estate. At that point I was pretty unhappy with my/our current situation and was evaluating the alternatives. And yes, I was also thinking about buying a home.

Something which is in my eyes a risk far more bigger than anything else. And I was talking about it. Do you know what my friend said? “Hell, what the f*ck are you talking about? This was not on your list and this was not you plan. Stop it!”

What is “doing good with money”?

Those of you who follow me on here on my blog or on Instagram know, that I have not achieve my financial goals yet. Therefore I am just able to give you my point of view, which is pretty basic. But still, I think those signs are worth to read it as they are dealing with he basic stuff you have to achieve to get financial things going.

In Germany the average net assets are about 108.000 EUR. Pretending we quit working at the age of 67 and live another 14 years this does not sound much, doesn’t it?

Of course this an average number. But in the US the average net assets are 432.000 USD. Those numbers are not really comparable as we get paid a pension whereas the Americans mainly have to take care for themselves after they are aged 67. But nevertheless, I think we need to talk about that topic of “doing good with money”.

The more you are doing good, the less financial influences you will have in your life. And when I am talking to friends, colleagues, and random people, I have the feeling todays people are not aware of what is coming towards them.

Wherever you are, you might check those signs out of my blogpost and try to rate, whether you are on the right path. Remember, I am not the financial guru having millions in my account. But I was able to turn a big debt into some net assets over the last years.

#1 You don’t have to count the days until your next payday

People live from month to month. I know people who live the first days of the month like the Prince of Bel Air. From the 5th or 6th on they are just eating dry toasts, drinking water out of the water tap and need to borrow money from friends for fuel and food.

That is horrible!

What do you think those people have to do, when they reached 67? Correct, that have to work further on trying to cover their costs.

So the first sign for you of doing good with money is that you do not have to count the time until your next payment.

On my IG post about I wrote two options:

#1 Control your expenses and do what is necessary to not run out of money during the month. You should always calculate with something like a financial buffer to be prepared for the unexpected things. The bigger this buffer, the less you have to care.

#2 Invest your money for more paydays. Get your money to work for you. Invest like hell and find possibilities to add several more paydays. Those might be though dividends or also interest payments from your P2P lending platform. Whatever it is – go for it and create a month with 30 paydays!

Do, whatever is necessary to get yourself out of this downwards spiral.

#2 Having a “rainy day fund” for unexpected things

In my blogpost about the emergency fund or also called rainy day fund I am talking about the amount which has to be in there. This depends on your personal lifestyle an situation.

A family father with a pregnant wife needs ways more in his rainy day fund than a student living at home. Understand? Make you own figures and save this money somewhere it is always accessable.

It sounds wired to start with this rainy day fund, but it is essential for everything else what should follow. If you current situation and life is safe you are moe relaxed about taking risks. Every opportunity has a risk. But thinking about the bills you have to pay will make you quit that chance. The moment your life is safe you will take those chances and make the best out of it.

#3 Learn how to budget and pay yourself first

Budgeting is that sexy as dust. There is no one ever happy about budgeting. Me neither. But I think it is the key to success.

The idea behind budgeting is to allow yourself a certain amount of money for something. You are not allowed to use more. And if you are constantly using less, you should lower your budget therefore.

It is the same on a diet or a healthy lifestyle. Every meal and every workout are counting on your way to a fit body. And in financial things budgeting is the “financial diet” you have to follow to achieve your goals.

The more you care about it, the faster your journey will be. That does not mean you are not allowed to spend money – the same as you are of course allowed to drink a glas of wine during your healthy lifestyle. But you should always have the control of what is happening and dont give yourself a pass!

#4 Your overall savings are growing

One of the first things you should get rid of are debts. They might kill anything you are trying to achieve. In my eyes you should always concentrate on those with you full attention until you are in debt.

When you paid them down do not stop tracking your financial numbers. From now on it is big fun to follow as your net assets are growing.

As your goal you should choose numbers you want to achieve within the next years. For example like a number for a 10-years-goal, 5 years and this year. That is the way I do it. And it gives me the chance to break them down into smaller numbers, which are my monthly goals.

You re doing good, when your overall wealth is rising. Possibly this might include longterm-debts, but the amount of them should decrease.

#5 Looking into the future makes you happy

Fears are usual during those times. Corona the last year proved us – and they are still proving us. No matter what you are thinking about this pandemic, there will always be fears about the personal future.

It starts with your job, continues with your finances and ends with your family life – there are so many things you might be afraid of for good reasons.

One third of all divorcements are because of financial things. People are not able to overcome their obstacles and fail working together on their financial goals. This is horrible!

Turning this fact around will make you one third happier, if you are controlling your finances. And let me add something: I think it is more than 30%. Imagine yourself sitting on a rainy day fund of a six months salary and a fully paid pension plan.

Will this affect your overall mood? Maybe also you self-confidence? I guess so. It will spread all over your life and you will feel more valueable, looking happily into the future.

Am I right in your case?

#6 You have multiple streams of income

Heck, when you have this point, you are really doing good. After killing all of your debts and doubts, you should start investing. Always “pay yourself first” and take yourself as the most valueable thing in your life.

This might sound not reasonable to you, but it is true. The moment you get your money to work for you from several streams in great. You do not need to receive three- or four-figure-incomes from those streams. Just imagine you receive 1.000 EUR from dividends, 500 EUR from P2P lending and 500 EUR from ETF payouts per year.

Wouldn’t this be a massive change in your life?

There are so many sources you might generate income from. You decide what is best for you! You decide how to diversify. In fact, you are the fund manager of your own fund. You are what it is all about. So pay attention the lead your money to grow your wealth consistently!

#7 Others are asking you for a financial advice

As I mentioned in the beginning Germans do not like to talk about money. But we love to listen to those of us who were able to manage their money and generate wealth from it. To be honest, I love listening to this as well.

But when people start asking you for a financial advice, it is something like crowning. PLEASE take care and consider what you are doing (and saying). Others rely on you as you are some steps ahead. They do not want to know what you would do, but what you would do in their situation. Do not make things more complex as they (maybe already).

Take those questions as a gift to be able to help someone else. Give him or her the best advice you have and take care about it. The overall feeling is to help someone out of debt or to a substantial wealth as you help others to help themselves. This is something like people-compounding-effect.

Are you “doing good with money”?

I hope I was able to show you some interesting points and point out what is essential for me. As I already mentioned those signs are my personal signs, but you will also find them somewhere else is a slighty different form.

Whenever you are asking yourself whether you are doing good, just compare and rate your situation with those signs and you will know where you are at. And if you are not where you want to be, you just have to check those signs you already achieved and work on those which are open.