A person’s financial situation is always fluid. There will probably be times during your life when you feel flush, and you’re confident that you can pay any bills that come your way. At other moments, if you’re in debt, you might turn to tools like a payoff calculator until you’re back on more stable financial ground.
Remember, though, you can always work on your monetary situation if it’s not where you want it to be. It might also turn out that your prospects are better than what you imagined. Let’s look at a few ways you can tell that you’re doing better with your finances than it might first appear.
1. You Have No Credit Card Debt
Maybe you don’t have a ton in your savings or checking accounts right now, or maybe you don’t have a lot of assets like stocks or bonds. However, if you’re not currently carrying any credit card debt, you’re doing alright. Millions of Americans have substantial credit card debt, and if that’s something you’ve been able to avoid, that’s cause for celebration.
You can work hard and practice responsible spending habits, and you can probably build up your savings and create a diversified portfolio for yourself eventually. As of now, though, being able to pay off your credit card balances in full every month is a sure sign that your situation is not as dire as you might imagine.
2. You Save Regularly
You may also be in the habit of putting away money from your paycheck every month into a savings account. Maybe you need to put the bulk of the cash you earn toward your weekly or monthly expenses, but if you can stash at least a little bit in your rainy-day fund, you should feel optimistic.
You can use that money as a shield against sudden expenses, like hefty medical bills. You might even use some of that cash to take a vacation at some point, or maybe you continue to save it for your eventual retirement. Look at it this way: saving a little money from every paycheck is a great way to build good habits and prepare for your future.
3. You Own a Home
If you don’t have a lot of money in your accounts or other financial assets, but own your own home, you have equity, as well as four walls and a roof over your head.
Owning your home means you still have to pay utility and food bills, but you can avoid the monthly rent you would pay if renting a house or apartment, which is rising around the country due to inflation. Owning a home means you’ll always have a measure of stability, even if you don’t have a lot of liquid assets.
Keep in mind that there are other costs associated with homeownership, such as property and school taxes, but as long as you know what time of year to expect those bills, they shouldn’t blindside you.
You May Be Doing Better than You Think
You might not feel like you’re wealthy at this particular moment, but if you stop and consider your situation, you may decide you’re not doing as bad as you thought. If you own a home, that means you don’t have to worry about rent every month.
If you save money from every paycheck and put it away, that’s being financially responsible, and those savings will build up over time. If you have no credit card debt and continue paying off your balances at the end of every billing cycle, you won’t have to worry about exorbitant interest fees.
Try to look on the bright side and make sensible monetary decisions every day, and your finances should keep moving in the right direction.