Are You Financially Stable? Here Are 7 Big Signs That Prove It
Let’s face it, financial stability is one of the most sought after things in life. It is why people wake up and work tirelessly every day, to achieve the American dream which includes financial stability.
Financial stability means different things to different people but at the basic level, it means living a comfortable life without having to worry about finances and money.
Some ways to achieve financial stability include avoiding impulse buying, saving and investing in your future as well as avoiding unnecessary debt.
Below are some signs that you are financially stable:
Little To No Debt
Debt in society can be used to fuel a greater dream but in these tough economic times, they are being used to acquire some basic needs and luxuries by different people.
Credit cards are the biggest drivers of debt in society as people use them as an extension to their salary and end up being unable to pay them back at the end of the month.
People end up purchasing luxuries and things they don’t need and get a new credit card when they have maxed out their limits.
Financially stable people have little to no debt as all their money is accounted for. Even for those who use credit cards, they pay them back at the end of the month.
For those that decide to take loans, they take loans with a time limit of five years or below so as to avoid spending all their lives working to finance the loan.
You Don’t Fight Over Money With Your Partner
One of the biggest reasons for conflict in the family and between couples is money and finances. Many marriages have ended up in divorce because of money matters.
When a couple can sleep well at night without having those financial arguments, then they are doing well for themselves financially.
This could be because of proper money allocation and honest communication between the two.
You Pay Your Bills On Or Ahead Of Time
Financially stable individuals always pay their bills on time or ahead of time. This includes everything from school fees to mortgages and electricity.
They never leave the necessities pending as they have properly budgeted their funds ahead of time.
Losing Your Job Would Not Mean You Can’t Pay Your Bills
For someone who is financially stable, they are not afraid of losing their job. This is mostly because they have a vast savings account and can sustain themselves and their families for a number of months to come.
Some also have alternative income streams aside from just their jobs hence the money is still coming in.
They therefore don’t lose any sleep over losing one income stream. If it’s a couple, they can comfortably survive on one spouse’s income.
Your Emergency Fund Balance Is Admirable
Financially stable people prioritize emergency funds and health insurance as those could literally wipe out all your savings if not invested in.
Health coverage is important as healthcare is expensive to acquire. This helps secure your future. People are able to focus on work and give 100% of their effort as healthcare and emergencies are covered.
You’re Generous Giver Where Charities Are Involved
You know you are financially stable and secure when you can give generously to charities and help the needy.
This is because you understand it is your responsibility in society to help those who need help. That money does not hurt your wallet either.
College Fees Don’t Scare You
While most people dread the thought of college fees, financially stable parents look forward to it.
This is because most of them start a college fund for their children from when they are born so as to cover the costs when it is time.
You are also disciplined enough not to have to dip your hand in it to finance something else.