Keeping a financial stable life requires much discipline and a well developed financial habit.
Of course, no one wants to be in the financial difficulties that can even make certain individual or you become psychologically and emotionally devastated. So as of now, it is way better to protect the current finances that you have, before any unexpected situations happens that can cause bad with your hard earned money to slip away in a snap from your accounts.
This is why the need to learn finances and the current ways of become financial stability is a must, so that you can start doing some adjustments as early as possible.
In our years of experience as financial advisor, we can say that people spend greater amount of time chasing on financial stability, without even thinking the higher possibilities that they already have a financially stable life.
In order to keep people out there become aware of the things, we have here some 27 signs that clearly determine if you are financially stable and when it happens you are not that stable, it is not yet over, you can start working things and make these items in reality to your actual life.
1. No Checking Account Overdraw
Even though you have an overdraft protection feature in your personal checking account, you prefer to habitually keep a certain cushion in it, rather than just purely relying on the feature given on you. And positively you never had a bounce check situation in your life and if ever there is, it will be in the past for you to level up and get aware of it.
Generally, we are sure that you don’t want to pay those fees imposed on overdrafts and penalties. This is because you have sufficient funds or amount of money for you to keep in your account when you need it in times of unforeseen situations.
2. Thinking you Finances before you sleep, “not anymore”
The feeling that every time you go to your bed at night, the feeling of lying in your bed with full comfort peacefully and deeply, and if ever there is something that will keep you awake during that time, it is not related to financial issues.
This type of experience is considered as non financial advantage for those people that are in the stage of financial stability, since they have a strong position in their financial issues.
This does not point out that you don’t have money to think at all, the idea here is that “they are not significant anymore”, when we say not significant, this talk about financial issues, since you already have a sound plan or solution for it.
3. Using Credits Cards for Rewards and Convenience, Not for Necessity
To tell you, I currently own 5 credits cards and I am using it almost every day. <omg> you might be asking me, how could it be? I am a financial planner not just an ordinary one but a certified one.
You might be right, but here is my catch: I make sure I paid them every month without miss. To tell you, I am carefully choosing to which card will I choose and of course I am using it for a reason. I am using the advantages or collecting the rewards points for me to use in my airline miles. See the returns?
Doing it is not an issue in your daily life…
If you use your credit card, this will be for convenience, such conveniences that allows you to pay or have a fast transaction when you pay something online or doing it because a company or establishment will give you something in form of reward for the purchases made.
4. Losing your current job is not an issue
I considered this as one of the best financial stability indicators. In reality, it is sad to say that most people in the world and even in some people living in tier one countries live from paycheck to paycheck. This means that the idea of losing a job, even just for a single month or two could become a disaster in terms of financial matters.
Since the finance that you have is in balance, situations like losing your current job is not something that you should worry, at least it is not ruining your overall finances.
5. No late issues on payments
Normally, this situation is not an issue anymore since you have enough funds for you to pay your regular bills, and also you have preference preparing ahead of time for your scheduled finances than just left behind on the actual due date.
This is one common reason also why people don’t lose sleep over finances. So when you are at home at night and you know that all bills are paid off, no need to say more, “have a goodnight sleep”.
6. Paying bills before due date or ahead of time
This is the reason for you not to be charged with penalties due to not paying on time, a financially stable individual pays bills ahead before the scheduled date. Of course you will not be late. In fact, as soon as the bill comes in, you immediately pay them. You are doing this because you don’t want bills or you don’t like bills stayed at your hands or don’t like anybody owning at you.
7. People Ask Financial Opinions from you
I like this one. This is one of the outward signs of being financially stable. The time that people around your circle ask your own opinion about certain financial matters, they are doing it because they have seen you as model or a person for them to be mentored when it comes to money.
When situation like this happens on you, take it as compliment. It only mean that they trust you as they believed you are financially stable and it is very obvious that people sees it, and of course they will ask opinions from you for them to achieve that financial stability you are enjoying.
8. Happy with your current financial situation
The statement does not mean that the financial situation you have is perfect to the fullest, but considering that all of your finances are in balance, therefore you are very much satisfied with the direction in life that you are heading.
Even though you will encounter financial challenges along the way, you already have a sound plan for you to maximize in case those situations comes or before they come on your way. No matter what level of financial difficulties may come in, you got all of them all covered.
9. No more Ugly Balances in your Credit Card
Fact: there are many people with considerably high incomes and even owns huge amount of assets but with ugly balances in their credit cards. That situation is not the type of game that you are playing.
You generally refuse to have balances in your credit cards that cannot be paid quickly. That situation will keep you paying extra high rate of interest imposed by the company and penalties and will surely made you sleepless at night.
10. You have enough funds to finance Car loans up to Five Years
Even though in some countries, there are special car loans that can last up to seven years, you can keep your loans up to five years or even less. The best if you can pay car purchases in cash, or paying them ahead of the given payment schedule
This means that you can live life to the fullest without carrying a continuous payment to be paid by your car loan. In other words, when you purchase your new car, the scenario could happen is that, you will be making larger down payment than the required one, this is the reason why other take shorter loans to comply with the standards, making it difficult to cope up on the next payment schedule.
11. You contribute double percentage on your retirement payments
For the record, many people tend to contribute nothing than what is the minimum amount for them to obtain maximum match from their employer in terms of their future retirement contributions.
But that type of scenario is not the type of game that you will be playing, you strongly recognize the significance of investment aggressively in retirement making your goal of becoming more stable financially to the point that you will be retiring.
Instead you are paying the maximum contribution that you are allowed to for your retirement, or in the other hand you are doubling the amount.
Since you are doing it so, your early retirement is somewhat legitimate consideration for you to enjoy remaining days of your life more.
12. No Guilt feeling when going for Special Occasions
In our life, there are certain situations wherein we spend little or too much of money. This episode in life usually happens during special occasions, like vacations, holidays, birthdays, and other important celebrations.
When you are financially stable, you are not considering these events as budget busters. Meaning you have enough budget for you to access that can accommodate these occasional spending without having problems at the end of the month which would likely affect your regular paycheck.
13. You can buy things that you want
Well, if you want something and crave for it, you can simply go out then buy it without any worries for budget troubles. This means you have strong finance that enables you to get what you want.
What we mean here is not about whim spending in an ongoing basis, but you having enough extra funds in your budget for you to get things that you want. In other words, “money does not rule your desire.”
14. Leisure Spending does not trouble you
There many considerable vices in our life, hard drinker as bad habits, use of drugs, and even over eating. For most people, they have recreational shopping as vice. Spending their money made lose them and even troubles them. Meaning, recreational spending habit as way of rebelling impaired situation in finances.
Well, that is not the type of scenario that you are going to experience when you’re financially stable, nor you will not feel them. Meaning you are very much happy with your finances and spending money is not an option for you to feel good.
15. Being a Natural Saver is embedded on you
We believed that being a “natural saver” is the key habit for any person who can successfully become financially stable and this is the type habit that you should develop. Since you are already doing this for so long, of course it can be strengthen more as you go along your life journey. You can even do this, by having a sense of purpose, without any pangs of feeling on self denial.
16. You are generous when it comes to helping others and charities
You support charities on regular basis, and you are also generous to the people around you. You can do this because you never sense a feeling of negative impact in your financial position or losing when you give money to people around you. Giving with ease, and feeling good about it.
17. Future confident
This is one of the best indicators also of being financially stable. You have a total control over your finances, making you more confident about things that could happen in the future.
Due to the fact that you can live on what you actually earn, you have substantial amount of financial assets that is growing on regular basis, and of course you only carry a little, and if there is any, it is not about housing debt.
You foresee future being kind on you, and that is where you strong confidence comes.
18. Your overall net worth is growing significantly as year passes by
This means that your overall net worth is growing every year by large amounts. The idea here is not doubling the current money you have, but it is about achieving a consistent increase in your total net worth.
The mentioned increase came from the combination of your investments on a regular contributions and solid investment returns that you have done.
19. You Have Enough Equity at home
One of the major makers of becoming financially stable is the amount of equity you have in your home. This happens because you have made a considerable amount of down payment when you purchase your home, or you are paying some extra than the principal amount on your monthly payment for you to accelerate payoff in the mortgage or a combination.
When we say large equity, it means that you don’t worry on falling values of the property you own, at least it happens to low or no equity scenarios.
20. You can live by means consistently
You can leave by means consistently because you are aware to the things, being financial stable starts when you create extra room for savings in your investments, budgets and even paying debt.
This type of situation is not a struggle on you, but something that come to you easily.
21. Cut in large pay can’t destroy your life
This is one of the benefits of being financially stable. You can live above your means that even a large cut on your pay can’t destroy life. This is because you already living less to what you actually earning, taking cut in your work, or even transferring to low paying job won’t do any blow to your life. You always find ways to live by your means whatever they may be.
22. Kids College Cost does not scare you
You are already looking forward when your kids goes to college in the future. Meaning you are already aware of the outrageous amount that you are going to spend in the future, but you are already making plans so that you will be prepared when that time comes.
This can be done with the combination of your investment and long term savings plan for your child thru college plan, stream lining finances so you can pay future amounts from your income, or working that will help you children avail a scholarships that will greatly contribute to the total cost.
23. You are unconcerned with the Joneses
In this world, being stable financially is the most amazing situation for any individual can experience. You don’t need to get the trappings of good life as to what other people are working hard just to attain the experience. You keep sending money that you don’t obviously have, and can lead into debt.
Being financially stable leave you enough money allotted for savings and your investments, in which this can increase you overall stability in finance and even more, you don’t need those trophies and toys.
24. You ear giving your 100% on your job – Financial issues don’t distract you
The experiences of sleeping like a baby, you don’t worry with other things, this is also when you work in your job, and you are giving your 100% in it. You are not weighed down by emotional troubles having bills that are not yet paid.
This is because you are living less on the actual amount that you are going to make. You don’t want to waste time feeling sorry because you are not getting enough money on your paycheck to pay your regular expenses.
Giving your full power in the job that you have and the things that are need to be done, this can make you better opportunities and even lead to promotions when the time they come along in the future..
25. Your Personal Credit Card is Paid Each Month
Since using your credit card is not a financial extension for your paycheck, the higher that chances that you can pay whatever balance you in each month, it can be in full as they come in with no delays. You don’t have lingering debts, and none other worries attached to it. In each month, you have a clean slate up to the next month.
26. Without Paycheck you can survive in months
You have enough liquid savings that can hold up to months without any paycheck coming to. You don’t need to tap savings in long term, like what retirement plans do. And even bankruptcy will not be a remote consideration, this is because you don’t have or have little savings.
In the sense that you can live and enjoy life without paycheck for extended period, this will make you easier and comfortably act on your will. The threat of layout or get fired does not concerns you most and you don’t feel any trapped on your current job.
This is the kind of situation that clearly indicates that you are financially stable and it feels good to have this feeling.
27. You have Full control on finances
In general, your strong sense or the control over your finances, this clearly points out that when it come your money, you have wide choices. And since your money creates those selections, you are more than an average individual.
This is when you become financially stable, and the ultimate goal that should be. “You have the freedom to do whatever you want to do, when you want it now and doing it on your own terms without other concerns intervening.
These might be a long list, but if you are still not feeling those signs right now, you can start working and get yourself in the position where things will come into you. The effort that you will be doing might take long, but in the long run your effort will be worth.
It is not just how the way you respond to the financial situations that you are experiencing as you go along life. The goal is that you have a sense of back-up plan to the financial problems that can happen in you in the long run.
Your attitude plays an important role for you to become financially stable in the future, it is a matter of self discipline, planning and the right execution of the plans that you have.
Below are some of the common habits that every financially stable individual has. We carefully look for some data’s from expert and extract the most common one and create a general outline, so here they are.
28. They don’t spend impulsively
Your money is a triggering point for you to engage on something, this type of situation happens and it is a big problem for every individual that should not be taken advantage in life.
When you have impulse spending, it means that you are spending your money out extensively until such time that you finances are totally drained out. The stability in finance can only be achieved when you as an individual have full control and could regularly monitor your impulse spending.
29. You save money
When a person is financially stable, the scenarios can be spending less on what you actually earn. Abundant in the money that comes in is not that necessary, what is important here is you don’t do overspending.
Doing this enables you to save extra money. So for now, you need to learn something, you can negotiate your cable, phone and even utility bills. Or by just reducing the money spend on your grocery, clothing and even restaurants.
30. You have a track on spending
As you are in control in everything, you can monitor money that goes out and where it goes. You can do this occasionally, we suggest do it once a month so you will have a record on the money spent, and check the areas on your expenses wherein you’re deficient.
When you have the data, you will have a broader understanding and create efficient finance adjustments.
When a person is financially stable, they do things that will secure future. So even though retirement is not yet near, you can start setting money on your deposits and place it on some good investments (in this part we suggest you contact a licensed wealth manager specialist that will guide your for effective investment plans).
32. Prevent or eliminate debts
There are many kinds of debts, and for sure they are not the same. Your home loan has high interest and it is not the same to loans that has low interest rates, like mortgage or student loans.
According to experts, your debt has psychological effect against debtor, so it is way better to prevent debts. So you need t know the amount of money you owe, whether it was used for a car loan or just a credit card debt.
A financially stable individual has a good budget plan. With the use of budget plan, they can ascertain where money is being used and seeing where you want it to go. You can make use apps, so when you have a budget you take charge of it and make yourself accountable if things go wrong.
34. Respond automatically
Financially stable individual don’t procrastinate finances. Delaying scheduled payments or due dates is not on their mind. Doing this will leave no room for debt to grow and opens up with new opportunity to what money can be sued for other personal expenses.
35. No room for bad habits
This type of attitude requires discipline, but a financially stable individual understand it and knows that bad habits will just eat income and even rob future joys. Remember that things that make you truly happy are inexpensive and does not leave you swimming in debt.
There are activities that are considered special to you, considering these are so special, so you want to treat yourself with something. This can be buying your new house, buying your dream car, or going on a vacation.
These could be listed on your long term goals as it requires sound planning for you to achieve them without minimal problems. So instead of procrastinating, you can just simply put dates on the goals you have set. Doing this gives you an overview of where you are heading to.
37. Value health or health above all
Being financially stable requires responsibility. For sure you cannot happily accomplish everything without protecting your personal vehicle to your success. Fact, medicine is very much expensive, from the point of medication, examination up to treatment.
A financially stable individual don’t just protect finances but also protect health by controlling a healthy lifestyle. For sure, unforeseen occurrences could happen any time, but considering that there are still ways for you to manage health issues and yet still you are still in control to everything.
38. Auto magical Savings
We have different priorities, but we suggest that you include this on the top, especially when your emergency fund is not that solid or you don’t have at all. So make sure you make this a priority each time you received your regular pay check.
A financially stable individual set specific amount that is automatically transferred to its checking account. You don’t need to think about t his amount. The only thing that you make sure is to make sure that it happens on you every payday.
39. Securing your Family
A financially stable individual makes it sure that his family is secure financially. So the first step in doing this is to allot something for emergency fund, so everything bad things could happen, you have the back-up which will help you.
The best thing we can suggest is to get insurance and make it a habit to pay it regularly and do it as soon as you read this and if you are that serious. You can do your research on the right insurance company or provider that fits your need.
40. Using an Envelope System
I personally used this type of system, a simple system that you can apply for you to keep track on where your money goes.
Let us say, you can divide your paycheck in three amounts, for gas, for groceries and for food. You can withdraw the said amounts during payday, so you can put them in separate envelope.
By doing this, it enables you to easily track expenses, and when money is run out you can rethink of possible budget adjustment.
Table of Contents
- 1 1. No Checking Account Overdraw
- 2 2. Thinking you Finances before you sleep, “not anymore”
- 3 3. Using Credits Cards for Rewards and Convenience, Not for Necessity
- 4 4. Losing your current job is not an issue
- 5 5. No late issues on payments
- 6 6. Paying bills before due date or ahead of time
- 7 7. People Ask Financial Opinions from you
- 8 8. Happy with your current financial situation
- 9 9. No more Ugly Balances in your Credit Card
- 10 10. You have enough funds to finance Car loans up to Five Years
- 11 11. You contribute double percentage on your retirement payments
- 12 12. No Guilt feeling when going for Special Occasions
- 13 13. You can buy things that you want
- 14 14. Leisure Spending does not trouble you
- 15 15. Being a Natural Saver is embedded on you
- 16 16. You are generous when it comes to helping others and charities
- 17 17. Future confident
- 18 18. Your overall net worth is growing significantly as year passes by
- 19 19. You Have Enough Equity at home
- 20 20. You can live by means consistently
- 21 21. Cut in large pay can’t destroy your life
- 22 22. Kids College Cost does not scare you
- 23 23. You are unconcerned with the Joneses
- 24 24. You ear giving your 100% on your job – Financial issues don’t distract you
- 25 25. Your Personal Credit Card is Paid Each Month
- 26 26. Without Paycheck you can survive in months
- 27 27. You have Full control on finances
- 28 28. They don’t spend impulsively
- 29 29. You save money
- 30 30. You have a track on spending
- 31 31. Invest
- 32 32. Prevent or eliminate debts
- 33 33. Budget
- 34 34. Respond automatically
- 35 35. No room for bad habits
- 36 36. Plan
- 37 37. Value health or health above all
- 38 38. Auto magical Savings
- 39 39. Securing your Family
- 40 40. Using an Envelope System