It is time to pat yourself on the back. When it comes to personal finance, people beat themselves up whenever they fall short of perfection. There are no financial advisory blogs or professionals that will stop you from having your occasional Starbucks coffee still; the reality is the all-or-nothing approach to money is counterproductive at worst.
If you've experienced a recent setback or are struggling to make meaningful progress towards your goals, giving yourself credit for what you are doing right motivates you to keep going further with it.
Here are 15 signs that you're better at managing your money than you think:
1. You Are Prepared for a Financial Emergency
Only 40% of Indians can afford a $500 emergency. If you achieve this, you're less likely to rely on credit cards. Always keep a starter emergency fund of $1,000 at all times can provide you with a safety debt as you look for alternatives.
2. No Alterations in Savings
This shows that your income is stable and sufficient to meet your daily and required ends and that you can live within your term. Living a life you can afford may sound like nothing, but not everyone can manage to achieve this.
3. Low Usage of Credit Cards
Credit cards are an excellent choice to earn cashback and reward points on your heavy purchases. That said, 43% of credit card consumers carry some balance each month, indicating that almost half of them use it to fill the gap in their budget, which adds to debt every month. So, if you're able to meet your bills and are out of credit card debt, you're ahead in the game.
4. Good Credit Score
A score of 680 or higher is considered a good score. This range has benefits, such as easier time for qualifying for loans, savings on interest, and avoiding security deposits. Still, the journey isn't always easy, requiring timely payments, low utilization, and a history check. So if you have a score in this range, be proud that you've managed your financial obligations well.
Read more: The Pros and Cons of Credit Cards
5. No Financial Stress
Buying yourself everything you like and want may be far, but providing the essentials for yourself without any second thoughts is a clear sign that you live well. Taking a minute to appreciate this victory and work towards bigger goals.
6. Healthy Terms with Your Partner
This does not mean any disagreements ever. Opinions are natural and show that there is interest from both ends. But constantly fighting over money has established a leading increase in divorce and may indicate that you and your partner do not share a similar set of financial priorities.
7. You Can Afford Short Vacations Without Much Planning
Having flexibility in your budget shows you can afford those little vacations, which allows you to be discreet on your cheat days and keep note of your expenses. It should not go overheard and disturb your upcoming goals.
8. Pay Your Bills in Advance
This shows that you have both sufficient income and a budget that works. Instead of using next month's salary to pay bills, each paycheck is used to get out in front of your future expenses. Using your wages to cover bills drastically proactively reduces your likelihood of living paycheck to paycheck.
9. You Can Help Others Without Sacrificing Your Finances
Being able to provide shows that you're not only able to take care of yourself but also have enough capacity to help others. As long as you're giving after paying your bills and saving at least 20% of your income, this shows that you're able to use your budget to make room for what matters to you most.
10. You Give Financial Advice
Even if one friend, coworker, or family member has come to you about their finances and what they should do, this is a sign that you have your financial life together you think you do, and it shows.
11. What You Have, What You Earn, and How You Spend - The Difference is Clear
Knowing where you stand financially is half work, but if you know how much you have, how much you achieve, and where your money goes, you are on the right path.
12. You Track Your Expenses and Goals
It takes a significant amount of willpower and guesswork to make decisions regarding saving. Tracking frequently increases your chances of achieving them. It motivates you to take on new and more ambitious financial goals.
Read more: Top Budgeting Tips To Consider in 2021
13. You Are Aware of Your To-Dos
Knowing what you need to do and making a plan to get it done can save you thousands. Keep a list, plot them on a calendar, or use an app to manage them to keep them top of mind when life gets incredibly hectic.
14. Checking Account Balance isn't Mandatory
In better financial times, having the money you need in your account before using it allows you to stay on top of the game and helps in making significant progress towards any upcoming goals.
15. You Know Your Bad Money Habits and Working to Improve it
Whether you're an impulse or boredom shopper, you know where you stand and have a time-bound plan for improvement. Kicking lousy spending habits is also much easier when you list your spending triggers and modify your routine to avoid as many of them as possible.
(Check out 'Learn & Grow with Wizely' 'to read and learn more about how to manage your finances well.)