27 Indicators of Your Financial Stability

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When we recently settled into our new place after I returned from Iraq, my wife and I went couch shopping. She found a red couch on sale that she adored. Even though I didn’t quite get the appeal of a red couch, her choice won. When the sales clerk asked how we wanted to pay, suggesting their in-store financing, it hit me – we could pay cash!

A year earlier, paying cash wouldn’t have been an option, but now, we were financially stable. Although I couldn’t fully believe it yet, it was a significant turning point. Not only could we pay cash, but we also had some money left over. Many people spend their lives chasing financial stability. But you might already be there! Here are 27 signs of financial stability. If you’re not there yet, use these as goals to work towards.

1. You Never Overdraw Your Checking Account: Even with overdraft protection, you keep a cushion in your account, avoiding overdraft fees because you simply have enough funds.

2. You Don’t Lose Sleep Over Finances: You sleep soundly at night, knowing financial worries won’t keep you awake.

3. You Use Credit Cards for Convenience and Rewards – But Never Out of Necessity: You use credit cards daily but pay them off every month, collecting rewards like airline miles without carrying a balance.

4. You Don’t Worry About Losing Your Job: With balanced finances, losing your job doesn’t spell financial disaster.

5. You’re Never Late With Payments: You always have enough money and prefer being ahead with your finances, ensuring you pay bills on time.

6. You Pay Your Bills Ahead of Time: You dislike owing money and typically pay bills as soon as they arrive.

7. People Ask Your Opinion About Financial Matters: Others see you as someone who has financial matters figured out and seek your advice, a true compliment to your stability.

8. You’re Generally Happy With Your Financial Situation: While not perfect, your finances are balanced and you have a plan for future challenges.

9. You Have No Ugly Credit Card Balances: You avoid high, ugly credit card balances that can’t be quickly paid off, maintaining peace of mind.

10. You Finance Your Cars Over Five Years or Less – If You Take Loans at All: You avoid long car loans, choosing shorter terms or paying in cash, ensuring you’re not perpetually paying for a car.

11. You Contribute a Double-Digit Percentage of Your Pay To Retirement: You make aggressive retirement contributions, seeing it as critical for financial stability and considering early retirement.

12. You Don’t Feel Guilty When You’re Out For Special Occasions: Your budget accommodates occasional splurges for special moments without financial strain.

13. You Can Afford to Buy the Things You Really Want: You can afford what you truly want within your budget, without impulse spending.

14. Recreational Spending Doesn’t Appeal to You: You avoid spending as a coping mechanism and are content without using money to feel good.

15. You’re a Natural Saver: Saving comes easily to you, and you do it with purpose, never feeling deprived.

16. You’re Generous With Money When it Comes to Charities or Helping Others: Supporting charities and helping others in need comes naturally to you, without fear of financial impact.

17. You’re Confident About Your Future: Your well-controlled finances give you a positive outlook on the future.

18. Your Net Worth Grows Significantly From Year to Year: You see consistent, significant growth in your net worth from regular contributions and solid investments.

19. You Have Substantial Equity in Your Home: With significant home equity, you’re less worried about falling property values.

20. You Consistently Live Beneath Your Means: Living within your means easily allows extra room in your budget for savings, investments, or debt repayment.

21. A Large Pay Cut Wouldn’t Destroy Your Life: Living beneath your means makes taking a pay cut manageable without major lifestyle changes.

22. The Cost of Sending Your Kids to College Doesn’t Scare You: You’re prepared for the high cost of college with savings plans, streamlined finances, or scholarships.

23. You’re Totally Unconcerned With Keeping Up With the Joneses: You find satisfaction in your financial stability and don’t need to mimic others’ lifestyles, which helps avoid unnecessary spending.

24. You Give 100% on the Job – Financial Concerns Don’t Distract You: Financial peace allows you to focus fully on your work, free from distractions of unpaid bills or excessive debt.

25. You Pay Your Credit Cards in Full Each Month: Clearing your credit card balance monthly keeps debts from lingering and your slate clean each month.

26. You Could Survive For Months Without a Paycheck: With sufficient savings, you can live for months sans paycheck, never feeling trapped by your job.

27. You Feel in Control of Your Finances – Never Dominated by Them: Having control over your finances means having choices and options in life.

Achieving financial stability isn’t easy, but with disciplined habits and informed decision-making, it’s within reach. By budgeting, saving, investing wisely, and living within our means, we can secure a prosperous future. The rewards of financial stability are definitely worth the effort!