None of us wants to be poor, and none of us wants to be living from paycheck to paycheck, but so many of us end up in a financial tangle that we can’t seem to unravel.
Some of you will already know if you’re financially sound or not, some will think you are when you really are not, and some of you will be out there worrying about your financial future when there really is no need to because you’re doing everything right.
So, if you want to know if you’re really financially sound, check out these signs of stability:
Your Finances Give You Few Problems
The most obvious sign that you’re financially sound is when you rarely worry about money in your life. If you plod along being able to pay the bills, you have an emergency fund, and you don’t need to worry about debts, chances are you’re in a good place finance-wise anyway.
You’re Saving for Retirement
If you are not only saving for retirement but you’re saving enough that you’ll be able to comfortably live on it when the time does come to give up work, it’s an excellent sign of financial stability. If you’re not sure what you should be doing in regards to your retirement, check out this online retirement quiz. It will help you to see things more clearly and determine if you’re doing things right.
You Rarely Use Credit
If you almost always pay with cash or your debit card, or even if you do use your credit card to pay for everything, but you always pay off the balance in full at the end of the month, pat yourself on the back because you have this money thing worked out.
Your Emergency Fund is Brimming Over
If you not only have an emergency fund, but you have one which will cover all of your usual expenses for between 6-12 months, it’s an undeniable sign that you’re financially sound because, should you end up unable to work for whatever reason, it will give you ample time to get back on your feet without resorting to stability shaking credit.
You Don’t Mind Splashing Out
Whether it’s for a special birthday gift, a trip overseas or something a little extravagant for your home, if you don’t mind splashing out and being generous, towards yourself or others, once in a while, it shows that you have little fear about lack of money, and that is an indicator that your in a good place financially speaking.
Saving Money is Effortless
If you have automated your savings and you never ever feel a pang about that money leaving your account because you could buy that new handbag or games console or whatever, then you are someone who has the right idea about how to handle money. It will serve you well.
You Don’t Keep Up with the Joneses
Finally, if you’ve figured out that you don’t need all of those expensive consumer goods that do little more than boost the ego and which you become bored with after a few days, you are probably one of the sensible ones.
No one of these things is an indicator of financial stability, but if most of them apply to you, chances are you are on the right track, and you will be just fine.
