Characteristics of a Wise
Person
1. They Educate Themselves.
Educate yourself. Wise people learn the
basics of personal finance, including
information about budgeting, retirement
accounts, mortgages, and life insurance.
You can’t make solid decisions about
money without a deep understanding of
all of the elements involved in your
finances. 2. They Are Disciplined.
Wise people exercise self-control. If
you’ve invested in a stock as a long-
term investment opportunity, don’t panic
and sell the stock based on one day of
volatility. If you have a set budget, use
discipline to stick to your budget as you
walk though the shopping mall. Tip : If
you have trouble following a budget, try
the envelope budgeting system .
3. They Admit Their Mistakes and Learn
From Them.
People learn from their mistakes because
they must live through the consequences.
For example, if you’ve ever lent money to
a friend or relative who wouldn’t pay you
back , you are wise if you never lend
money to these people again. No matter
how hard the fall, always get back up
and start again. Begin by admitting your
mistakes, and then use those mistakes
as learning opportunities.
4. They Are Patient.
Patience is a virtue, and valuable when it
comes to personal finances. A wise
person saves enough money to purchase
a fun, new gadget instead of charging it
to a credit card. Wise people take their
time when making important decisions,
like buying a new car , or a home. When
you exercise patience, you give yourself
a chance to properly gather information,
and to weigh all of your options.
5. They Take Instruction Humbly.
A wise person admits that they don’t
know everything. They accept the fact
that other people are more qualified and
more knowledgeable than they are,
without dismay. By valuing others’
opinions and knowledge, a wise person
opens up to the possibility of acquiring
and retaining valuable information. Wise
people are not entitled, and they
welcome the input of others.
6. They Can Handle Rejection and
Failure.
A wise person doesn’t worry about
rejection when asking for a promotion
during a job performance review . A wise
person takes action on side business
ideas to earn passive income, without
worrying about failure. If you don’t risk
failure, you may never obtain significant
success.
7. They Know That They Can Only
Control Themselves.
Wise people don’t worry about what
other people think or what other people
do. They know that they can only control
themselves and that what other people
think doesn’t matter. For example, if a
wise person lives in a small, modest
home because the house was affordable,
he or she doesn’t worry about people in
larger, costlier homes.
8. They Are Guided by Wisdom.
Wisdom is better than riches. Wealth is
important, but does not take precedence
over family, friends, and health. Money
should be used as a means to achieving
one’s goals, but should not be the
end goal.
9. They Know Their Priorities.
Wise people put first things first and last
things last. They put family time first,
before hobbies or free time. They pay off
debt, before they buy something new.
Wise people have their lives sorted out,
and they know where they should direct
their attention.
10. They Are Trustworthy and Steadfast.
A wise person treats others as they want
to be treated, because they know it will
help them, not hurt them. The wise
person is who we always go to when we
need solid advice. Wise people are who
we turn to and who we trust in times of
need.
11. They Take Calculated Risks.
Without some risk, there is limited
chance of success. Wise people take
risks in support of their goals, without
endangering themselves or harming
others. Most great stories about
entrepreneurial success started with
someone taking a chance.
12. They Make the Most of Their
Relationships.
Wise people understand and revere the
power of networking. They don’t shy
away from asking advice of successful
friends and family members, and they
share their successes with others. Wise
people continue to learn and increase
their base of knowledge, and they know
this is significantly impacted by the
relationships they cultivate.
13. They Don’t Live Beyond Their
Means.
Wise people pay their bills on time and
only buy things they can afford. They
don’t feel pressured to spend money on
items they don’t need.
14. They Don’t Pay Full Price.
Wise people clip coupons, sign up for
discount clubs, and shop during sales.
They don’t mind holding up the line at
the grocery store while cashiers ring up
coupons (i.e. extreme couponing ). They
willingly buy half-price sweaters in the
summer, and discounted sandals in the
winter. They comparison shop online to
find the best prices for big purchases,
and they never, ever pay full price.
15. They Don’t Squander Money.
Whether it’s a tip, winnings from a poker
game, or a well-deserved bonus at work,
wise people know they need to save or
invest this money. Many people squander
“found” money, but wise people know
this money can help them achieve their
long-term financial goals . Instead of
wasting this money on something that
won’t last or on items they don’t need,
wise people put found money to work for
them.
Final Word
If it’s true that you can become a wise
person by emulating one, this article
gives you the blueprint for success.
Whether it’s gaining knowledge, putting
family first, or taking risks, there’s a lot
to be learned from wise people. Take a
close look at your personal finances to
determine whether you make wise
financial decisions and how you can
improve. It might just the right time for a
change.
Do you have wise tips for managing your
finances?
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