10 Signs That You’re Financially Doing Well in Life
One of the issues people are struggling with is financial stability. According to a report from CNBC, 62 percent of millennials say that they are living from paycheck to paycheck.
Achieving true financial stability is instrumental to becoming wealthy. It's also a hallmark of a peaceful life. When you're financially healthy, you won't have to worry about losing sleep when you see the bills or spend money on stuff.
How will you know that you're financially doing well in life?
Here are ten signs to help you determine if you're in good financial health:
1. Your Credit Score Is Excellent
The credit score of an individual typically falls between 300 and 850. The average American has a score of 695. If the number on your credit report is 720 or higher, you're in a fantastic position.
A higher credit score gives you more financial options. This is highly advantageous if you're planning to buy a house. Lenders will give you excellent mortgage interest rates when you have a stellar credit score.
2. You Have an Ample Emergency Cash Fund to Cover Unexpected Expenses
People have varying opinions on what a sufficient emergency fund is. The consensus, though, is that this fund should cover at least three months' worth of your living expenses.
A healthy emergency fund balance shows financial maturity. It's a sign that you've allotted time to make savings a priority over spending.
3. You're Not Worried About Spending Money on Special Occasions
Money is a tool that will help you make your life better and easier. If you're afraid of spending your hard-earned dollars on a special occasion, such as a trip to Japan to celebrate your work achievements, your current financial health may warrant a closer look.
4. Saving Money has Become a Habit
You'll know that you're doing well financially if saving money has become automatic for you. A habit of stashing cash away means that you're working hard to achieve your financial goals. It may also indicate that you've overcome the habit of incurring too many wasteful purchases.
5. You Have a Monthly Budget
A budget allows you to track your exact expenses and income periodically. Becoming financially healthy or stable is impossible if you're not sure about the details of your financial situation.
Budgets can also show you a clear picture of the areas that are draining your wallet. Once you've identified and eliminated these "money vampires," you'll be saving more of your hard-earned dollars each month. ;
6. You Don't Feel Guilty or Bad When Donating to Charity
Feeling generous is awesome, especially when you're helping out friends, family and people who are in need during these times of uncertainty.
When you're financially stable, you can give a portion of your money without negatively affecting your overall financial position. What's more, you'll feel good about donating your money.
7. You Use Credit Cards Wisely
Having credit cards isn't necessarily a bad thing. You can use them to obtain a specific number of rewards points for every dollar you spend.
Unfortunately, not everyone thinks this way. Some people have a bad habit of using credit cards to extend their paychecks. What's worse, they take on a line of credit to buy things they can't afford.
A person who uses their credit cards wisely does the following:
Pay off the outstanding balance in full
Use it strictly for convenience, such as making a quick online payment
Take advantage of the rewards programs without going into debt
8. You Can Still Pay Your Bills Even If You Lost Your Job
Millions of people have lost their jobs because of the ongoing global pandemic. Employees who are drowning in debt or living from paycheck to paycheck will be in huge trouble when their employer lays them off.
If you're financially stable, you can live months without a paycheck. Even if your company decides to let you go, you're going to be fine for the next few or several months. Also, you'll have enough time to get a new job.
9. You Control Your Finances - Not the Other Way Around
Financially stable individuals strongly believe that they're in charge of their finances. They're never a slave to money and can buy what they want, when they want and on their terms.
10. People Come to You for Financial Advice
An outward sign that you're financially stable is when friends and family approach you and ask for your opinion on financial matters. They do this because they look at you as someone who has everything figured out about money.;
Being financially healthy primarily rests in having a firm grasp of money management. You'll know that you're in a good financial situation if you're able to get the maximum benefit for your hard-earned dollars.