20 Financial Skills Everyone Should Have - Bitter to Richer (2024)

There are tons of things that everyone should know these days. No matter what your financial goals are, it doesn’t hurt to have the core skillset to manage finances throughout your life. These 20 financial skills will help you save money, make money, build wealth, and they’ll bring a lot of opportunities for you throughout your life. Without further ado, let’s dive right into all of the financial skills that everyone should have!

1. Negotiating

No matter what your profession is, or where you live, it’s good to have some basic negotiation skills. The better your communication skills, the easier it will be for you to negotiate a deal in your favor. More often than not, a good negotiation should lead to everyone feeling like they’ve gained something out of it. Even though things like bartering are becoming less common, negotiation skills are still a must for salary negotiations and the like.

2. Budgeting

A good budget can save you a lot of money in the long run. When you’re just starting out, it’s best to keep it simple. Make a budget that helps you stay on track and reach your goals, but don’t make one that is unrealistic. Once you have more experience with budgeting, more in-depth strategies like zero-based budgeting can be a great tool to try as well.

3. Dropping Short-Term Wants For Long-Term Results

It’s important to be willing to sacrifice the short-term for your long-term results. Buying less now may mean that you can get significantly more later. This is a simple concept, but one that may be hard for many to implement. When you think about it, this translates to just about everything in personal finance – especially retirement planning. Delayed gratification is hard for many people to commit to, but it is certainly worthwhile.

4. Maintaining Good Credit

Good credit scores can help you get bigger loans with lower interest rates. It is nothing but a boon for your finances, and it isn’t particularly hard to maintain a good credit score. As long as you practice normal, healthy financial habits, then you should be set. If you want more information on how to start building credit, or just need a breakdown of how it’s calculated, check out my guide on credit scores.

5. Index Fund & ETF Investing

The basics of investing in index funds and ETFs are really simple. M1 Finance is a great tool for experienced and beginner investors alike, which can help you build a portfolio from day one. For more information on index funds and ETFs, check out my guide on getting started with them. When it comes to good, hands-off, long-term investments, these are hard to beat.

6. Real Estate Investing

Learning about real estate can also be incredibly useful for investment opportunities. You can flip houses, find great deals, and even build a rental property portfolio. If none of those sound good, there are even REITs you can use to help diversify your overall investment portfolio.

If you decide investing in real estate isn’t for you, it can still be useful for getting a great deal on your primary residence. When you know what you’re doing, there are always great deals to be found. On top of that, you may also know the best ways to market (or renovate) your house for when you sell it and move.

7. Shopping For Deals

Being thrifty and knowing how to find good deals is a must for a frugal lifestyle. It may not sound glamorous, but the money you save can add up to an outrageous amount. So, next time you’re lounging around, start cutting out those coupons!

8. DIY

This is another skill that helps you stay frugal. If enjoy working with your hands, then doing some DIY projects can be a massive benefit. It doesn’t have to be crazy or over the top, but even small DIY projects can save hundreds of dollars. If you’re really good, you may be able to save more. Of course, for major projects that could be dangerous, I would suggest hiring a professional.

9. Cooking

Yes, cooking is actually an important financial skill you should have. It can help you save money and time, plus it’s great for your health. It may be intimidating at first, but the benefits are worthwhile. Take the time to learn how to cook and you’ll end up saving tons over the long run. Besides, the perks this has for your health shouldn’t be overlooked either.

10. Time Management

I know, time management sounds like another curve ball – but it’s not! Time management applies to a myriad of things related to your finances. It can help you stay on top of your day-to-day life, help you in your career, and ensure you have the ability to give the proper spotlight to your finances. Scheduling out some time each month for things like a financial review and expense analysis can help out a lot, especially when you’re struggling.

11. Balancing A Checkbook

So many people have never balanced a checkbook, but it’s really easy. Just look up a quick guide and you’ll be set in no time. Checks are an important payment method, but many overcomplicate it. It’s straightforward, you just need to sit down and learn how to do it once.

12. Understanding Different Types Of Assets And Their Purpose

There are many different types of assets, which I’ve partially covered earlier in this article, and they all have their pros and cons. It’s important to research them, understand them, and have a good grasp on what their purpose could be within your portfolio. This will help you make good investment decisions that will have a lasting impact on your long-term financial success.

13. Debt Management

Another useful skill is debt management. It’s important to use strong debt elimination strategies as part of managing it, but it’s also important to understand all of your options, how to get lower interest rates, and how to consolidate loans if need be. All of this can open doors for you and help you pay less over the long run.

14. Dollar-Cost Averaging

Dollar-cost averaging is the simple act of averaging out your investments and doing it routinely, instead of in one lump sum. I’m calling this a skill because a lot of people refuse to do it and instead try to time the market. Over the long run, you’ll usually have better performances if you just routinely invest in the stock market rather than try to time it.

15. Augmenting Your Income

Building up your income can actually take a lot of skills, but I’m specifically talking about side hustles here. As an example, you could consult on the side (for whatever you do in your day job), and all you would need to learn is how to market yourself and do the paperwork and bookkeeping aspects of it. Basically, learn some additional business skills, and that will help you make more money!

16. Build A Resume And Apply For A Job

This is two-fold. First, you need to learn how to build a resume. It shouldn’t be hard. Most people will be best served with a plain, one page document, which outlines their professional experience. Once you have that done, you also need to learn how to search for jobs and apply to them. Fortunately, that is made much easier these days with online job boards like ZipRecruiter.

17. Managing Bank Accounts Without Incurring Fees

Next up, it’s surprising about how many people can’t help but incur fees in modern banking. If you struggle with that, start micromanaging it until you can handle it without incurring fees anymore. Or, use an ethical bank with stellar interest rates and a good reputation like Axos. Many of their accounts have low or no fees, so it’ll be much easier to handle – plus the interest rates are incredibly competitive.

18. Using Your Employer’s Benefits

This is a cop-out, and not really a “skill” – nonetheless, it’s important to mention since few people do it. Your benefits, which you receive from your employer, are part of your compensation. Therefore, you should absolutely use them! If you don’t you may as well leave a lot of money on the table. Use that vacation time, take advantage of employee discounts, and so on.

19. Effectively Communicate – With Your Spouse

Another good skill is the ability to effectively communicate, especially regarding money. A lot of people have issues when it comes to talking about their finances, which is unfortunate. This can especially be a disaster if you don’t how how to talk about money with your spouse. Do yourself a favor. Make money a less taboo topic in your relationships, and start working with your spouse on your long-term financial plans and strategies.

20. Asking For Help

Last, but not least, it’s important to be willing to ask for help. We all have hard times occasionally, and there is nothing wrong with asking for support. For example, if you have a hard time staying on track with a financial goal, it can help to have a friend or family member who can be your accountability partner. This person can be anyone you speak with regularly, that way they can check in and encourage you when you make mistakes.

Conclusion

There you have it, 20 financial skills everyone should have. If you think I missed any, please let me know what they are in the comments! For more content like this, and a free budgeting template and financial goals worksheet, be sure to sign up for the Bitter to Richer newsletter.