Recently I’ve been noticing a few behavioural changes in the way I spend, save and manage my money.
For instance, “Impulse buying” has totally left the building. Now before making a big purchase, I like to have a little introspection moment where I evaluate the value the item might bring in my life.
And that makes a hell lot of difference.
Moreover, whenever I am out I no longer check if the total is out of my budget. This was not the case a few years prior.
Now I know for sure, if I want something, I can get it and I have more than enough funds to support it.
And all of this is possible because of the money friendly habits I’ve embedded in the system that has led me to attain financial stability (sort of, there’s always more room for improvement).
It is easy to get caught up in all the “earning, spending and saving” cycles while chasing financial stability, but if you look into your current situation, you might notice certain signs (just like the ones I’ve mentioned before), which may indicate that you already are eons ahead than you think.
Some of these signs are not that obvious, below are a few subtle signs that indicate you’re actually better with money than most of the people:
1. You’re reading this article
So you’re here reading this article, what does it say about you?
It says that “you’re aware” or at least “trying to be aware” of your financial situation.
This is a really useful trait to have!
Unlike some people who would rather bury their heads in the sand just to avoid a little confrontation with reality, you’re actually out here doing stuff, learning, and acknowledging yourself about certain things that might help you.
2. Your priorities are in the right direction
Irrespective of your current situation, if you often make the financial decisions that serve you in the long run rather than providing you instant gratification, your priorities are perfectly aligned with your vision.
That means you’re more focussed on paying off debt than buying yet another luxury item, more inclined to save money for retirement than to spend it on the latest iPhone model and so on.
3. You’re happy about your current financial situation
This implies that you are satisfied with the way things are going, and you have a perfect balance over earnings, spendings and the way you manage your money.
Of course, there is room to grow your wealth, but right now the grass is greener than it has ever been in the past. And that’s a good thing to be happy about.
4. You don’t feel very guilty while spending
Every now and then, we end up buying something that may have a big price tag to it or sometimes spend a bit too much on special occasions such as birthdays, anniversaries, vacations, etc.
But for you, these expenses do not dig a hole in your wallet as your budget has the flexibility to recover from this extravagant expenditure quite quickly.
And this is why there is no guilt that comes with it.
5. Other’s opinion about finances doesn’t concern you
Here, Other people are referred to anyone who says stuff like,
“I don’t have an emergency fund because I just like to treat myself every now and then, you know, living in the moment and stuff. You should try it!“
“You’re such a cheapskate, live a little, buy that thing for yourself”
No, thank you! When it comes to giving advice and presenting opinions, everyone seems to be an expert.
But nobody understands your situation better than you, and that is why you are able to make better money decisions for yourself. And when you’re presented with opinions, you put up filters that only absorb advice that feels right to you.
6. You have an emergency fund stacked up
If you have funds stacked up worth more than or equal to at least a month’s income, then you have emergencies well planned.
You have enough liquid funds which will enable you to live for a month or two without a paycheck. This allows you to continue with your life without worrying about affording a living in case of a crisis.
6. You don’t have any bad debt to your name
Not having any debt to your name certainly helps with your situation.
While debt isn’t something that is people can opt-out of anytime they want, but having it surely hurts your stability.
If a large portion of your income goes towards paying off debt, then it might cause delays in financial stability.
If you have any bad debt, here you can learn How to get rid of debt fast!
8. You use a credit card just for convenience and rewards
I have one credit card (probably will get more in the future) which I use quite regularly because I can afford to pay them off entirely every single month and I can use the reward points to redeem airline miles or other things.
I don’t have to pay the minimum due amount, because I can always pay it in full.
The fact that everyone can have a credit card does not imply everyone can afford one. If you can and have more than enough to pay it in full, it indicates that you’re financially stable.
9. You don’t have to ask anyone to help you financially
Not having to ask for money is a sole indicator that your financial situation does not rely on others/ you’re not dependent on others.
On the other hand, if you have to constantly ask your friends, family, etc to lend you some money every now and then, it’s a clear sign that you’re not financially sound.
10. You’re never late with bill payments
This is an obvious one! If you’re actually conscious about your financial stability, you’ll rarely find yourself being late with any bill payment.
And even if you’re late, it is because you forgot to pay it on time, not because you don’t have enough money to pay.
11. You don’t fight with your spouse/partner about money
A lot of the time, arguments between couples revolve around the topic of money.
This may be because one of them is irresponsible when it comes to managing money or simply because they cannot prioritize spending/investing in stuff that’ll benefit them in the long run.
Not being involved in this constant state of a financial disagreement suggests that you might be taking sensible financial decisions.
12. Avoiding further debt is a priority for you
Either you have debt, have paid it off in the past or have at least witnessed someone getting their soul sucked while paying it off, you know first-hand what it is like to have a bad debt to your name (say college debt).
So you do everything in your power to prevent that from happening again. And if you’re financially stable, it gives you a sense of direction of what not to do to maintain the said stability.
13. You consistently invest for your future
A financially knowledgeable individual understands the importance of investing.
Whether it might be in real estate property, towards retirement, learning a valuable skill, business or stocks, if you don’t invest your surplus money, you might actually be losing it every year because of inflation.
If you every now and they put some money aside just to invest it for future benefits, you are steps ahead of those who are not investing.
14. You have adopted (or trying to adopt) a minimalistic lifestyle
You have realized that buying more expensive items won’t help you in the haul, so you’ve opted to acquire things that are absolutely necessary or have a great value to you.
Having a minimalistic lifestyle can largely contribute to lesser expenditure on buying junk and promotes anti-hoarding.
To know how adopting minimalism can improve your life financially, check out this article.
15. You’re confident about your future
When you have stability in life, you no longer worry about how you’re going to survive, pay rent, etc.
A sense of confidence takes over you as if you are in control of your future financially.
16. You usually live beneath your means
Having an ample amount of money or a good source of income does not influence your spending habits since you’re aware that if the money goes as fast as it comes, you wouldn’t have anything left in your hand.
Moreover, If you don’t have to fight off constant urges to make expensive purchases, and living beneath your means comes naturally to you, this shouldn’t be a struggle.
17. You have a recovery plan
You’re in a position where you have the freedom to bounce back your life around in case of major money setback (say, if you lose your job or your business tanks tomorrow).
Whether it’s the emergency funds you’ve put aside, the assets to your name, or a secondary income source, you can use it to recover from financial misfortune in a minimal amount of time.
18. People ask you for Financial advice
If you’re really doing great with money, people usually notice that. I do. Friends and family might come to you for advice.
You may be called as the person who has “figured it out” when it comes to money.
19. You have more than one income source
Having multiple sources of income not only brings additional income to your table but it also acts as a backup in case you lose your primary income source for some unforeseeable reasons.
If you already have more than one source of income, Congratulations, you can tick this off your list
But if not, consider starting one!
That means having a side hustle, investing in rental property, anything that brings you more money than you’re already making.
And who knows maybe one day the income from this side hustle overtakes your primary income source.
20. You don’t feel the need to show off
Here’s a quote I came across maybe 3 years ago which really stuck with my, “Don’t go broke trying to look rich”.
If you have everything under control when it comes to money, you become less focussed on how others see you. Rather, you are genuinely disinterested in showing off
21. You are able to buy things you really like/want
If you really want something, you have the freedom to go out and get it without falling into any debt.
Your financial situation is strong enough to support the expenditure you’re willing to make.
22. Your net worth increases every year
You are seeing consistent growth in your net worth every year.
This should be a result of growth driven habits of yours such as, how you manage your savings, your regular contributions to your investment portfolio and having good investment returns
23. You have enough leisure time for yourself
If after making bank, you have enough leisure time for yourself, your family or other activities, then it’s a clear indicator that you have financial stability.
Having a substantial amount of free time says a lot about having a stable life compared to grinding for 18-19 hours a day.
24. You can help your family/friends financially if needed
This situation where someone close to you asks you for financial help doesn’t come very often. And when it does, to be able to help them gives you a sense of fulfillment.
“I was able to help my best friend in need”,
You can’t do that if you are financially challenged. It’s like wanting to help in every way possible but having your hands tied.
So if you’re in a position where you can help them in partial ways (if not fully), then you can check this off your “stability” list.
25. Money doesn’t control you –You control it!
Money does constitute a major part of our lives. And when you are in control of your finances, you can live your life doing whatever you want, however, you want.
This implies that you have more options in life than an average person, that that is the end goal of it all.
You are not limited by the numbers in your bank account, rather liberated by the freedom that comes with financial stability.