When it comes to being good with money, I have found that behaviours are far more important than knowledge. Sure, a base level of knowledge is important such as smart ways to invest and where to keep an emergency fund. But this knowledge will not get you far if you can’t implement it.

You don’t need to be smart to be good with money

The basics of personal finance are pretty basic. What is not easy is the implementation of the basics. Consistently saving and investing over long periods of time is not easy. It requires a lot of discipline not to spend it all.

Our own behaviours can easily sabotage our plans even though we know better. So I argue that our behavior is far more important in financial success than our financial knowledge. People can do very well if they have good habits without necessarily knowing a lot. People can do very poorly if they know a lot but don’t have the good habits.

Knowledge without the behaviours and habits to back up the knowledge is a waste and you will go nowhere financially.

In my opinion, the right behaviours without the knowledge will yield far greater results than someone with high knowledge but the wrong behaviours.

Ideally you will have both the knowledge and the behaviours. But if you only have one, then don’t worry if you don’t have all the knowledge in the world, as long as you have good savings habits. You could read my entire blog from back to front, but that will not change anything about your finances. You could listen to Dave Ramsey yelling at you how to pay off debt, but it doesn’t mean anything. You still need to act on it by making the budget, living below your means, and making sacrifices.

Knowledge will still need to come, because behaviour without knowledge can be misguided actions that can do some harm.Especially as the amount of money increases. It’s just that knowledge is easier to acquire and a smaller part of the puzzle.

Most people are not born into wealth, and need to work extremely hard and be disciplined with their money, spending less than they make. All of the knowledge in the world will not save you if you are stupid with your money and don’t implement that knowledge.

If you have someone that has all the knowledge in the world about investing but can only manage to consistently invest $100 a month due to their bad spending habits, they will be much worse off than someone who only has a beginners understanding of investing but can consistently invest $1,000 a month due to their discipline.

No matter how little you know, you can start winning with money immediately. All you need is the mindset and perseverance to get started and remain consistent. Don’t spend too much time on gaining knowledge if your behaviours are not sorted out, because winning with personal finance is far more behavioural than it is knowledgeable. Both are important, but behaviours are the more important part of the equation.

This should be of comfort to those that are not rocket scientists or financial gurus, that you can do just as well as anybody.

The information contained on this site is the opinion of the individual author(s) based on their personal opinions, observation, research, and years of experience. The information offered by this website is general education only and is not meant to be taken as individualised financial advice, legal advice, tax advice, or any other kind of advice. You can read more of my disclaimer here