Trending Now :

The US Housing Market Is Booming. Is a Crash Ahead? Financial Literacy: How to Be Smart with Your Money Non-Fungible Token (NFT):EXPLAINED SKYROCKETED CEO PAY & LONG LINES AT FOOD BANKS Amazon Workers Want to Unionize Another Major City Piloted Universal Basic Income The New Bubble: SPACs SUBMIT YOUR PPP ROUND 2 APPLICATION BEFORE MARCH 31ST Robinhood-GameStop Hearing & Payment for Order Flow Guess Who’s Coming to Main Street Democratic Senators Say No to $15 Minimum Wage BEZOS OUT! President Biden Most Impressive Act Went Unnoticed: CFPB Biden $1.9 Trillion Stimulus Package 2021 IPO DRAFT CLASS: Ranking the Top 10 Prospects $25 Billion Emergency Rental Assistance NO, TESLA IS NOT WORTH MORE THAN TOYOTA, VOLKSWAGEN, HYUNDAI, GM, AND FORD PUT TOGETHER AMAZON TO HAND OUT ITS WORKERS $300 HOLIDAY BONUS Where Does the American Middle-class stand on Student Debt Relief? Joe Biden’s Economic Plan Explained 4 TYPES OF BAD CREDIT REPORTS AND HOW TO FIX THEM What Is the Proper Approach to Not Buy Too Much House? FISCAL STIMULUS PLANS STILL IN ACTION How to Pick Investments for Your 401(k) 10 Simple Ways to Manage Your Money Better All You Need to Know about Reverse Mortgage All You Need to Know about Wholesale Real Estate Credit card Teaser Rates AVERAGE CREDIT CARD INTEREST RATE SURGES TO 20.5 Percent Trump Signs 4 Executive Orders for Coronavirus Economic Relief The Worst American Economy in History WHY CREDIT CARDS MINIMUM PAYMENTS ARE SO LOW? 10 BIGGEST COMPANIES IN AMERICA AND WHO OWNS THEM White House Wants to End the Extra $600-A-Week Unemployment  10 Countries That Penalize Savers FEWER CREDIT CARD BALANCE-TRANSFER OFFERS ARE IN YOUR MAILBOX Private Payrolls and the Unemployment Rate SHOULD YOU BUY INTO THE HOUSING MARKET RESILIENCY? WILL WE GET A SECOND STIMULUS CHECK The Child Tax Credit and Earned Income Tax Credit THE RETURN OF BUSINESS CYCLES Should You Request a Participant Loan or an Early 401(k) Withdrawal? Homebuyers Should Not Worry about Strict Mortgage Borrowing Standards The Potential Unintended Consequences of Mortgage Forbearance All Business Owners Need to Know about the Paycheck Protection Program 10 MILLION UNEMPLOYMENT CLAIMS IN TWO WEEKS HOW WILL THE GLOBAL MIDDLE-CLASS RECOVER FROM A SECOND ECONOMIC RECESSION IN A DECADE? WILL U.S. CONSUMERS CONTINUE TO SPEND? HOW’S YOUR 401(k) PRESIDENT TRUMP SIGNS $2.2 TRILLION CORONAVIRUS STIMULUS BILL MIDDLE-CLASS NIGHTMARE: MORE THAN 3.3 AMERICAN FILED FOR UNEMPLOYMENT CLAIMS IN THE US LAST WEEK. LAWMAKERS AGREED ON $2 TRILLION CORONAVIRUS STIMULUS DEAL CORONAVIRUS STIMULUS PACKAGE FAILED AGAIN IN THE SENATE APRIL 15 (TAX DAY) DELAYED DEMOCRATS AND REPUBLICANS DIFFER ON HOW $2 TRILLION OF YOUR TAX MONEY SHOULD BE SPENT YOU CAN DELAY MORTGAGE PAYMENTS UP TO 1 YEAR, BUT SHOULD YOU? 110 Million American Consumers Could See Their Credit Scores Change The Middle-Class Needs to Support Elizabeth Warren’s Bankruptcy Plan The SECURE Act & Stretch IRA: 5 Key Retirement Changes 5 Best Blue-chip Dividend Stocks for 2020 9 Common Bankruptcy Myths 401(K) BLUNDERS TO AVOID Government Policies Built and Destroyed America’s Middle-Class & JCPenney Elijah E. Cummings, Esteemed Democrat Who Led the Impeachment Inquiry into Trump, Dies at 68 12 Candidates One-stage: Who Championed Middle-Class Policies the Most WeWork: From Roadshow to Bankruptcy Stand with the United Auto Workers Formal impeachment Inquiry into President Donald Trump America Is Still a Middle-Class Country SAUDI OIL ATTACKS: All YOU NEED TO KNOW THE FEDERAL RESERVE ABOLISHED BUSINESS CYCLES AUTO WORKERS GO ON STRIKE Saudi Attacks Send Oil Prices Spiraling REMEMBERING 9/11 What to Expect from the 116th Congress after Their August Recess Should You Accept the Pain of Trump’s Trade War? 45th G7 Summit-President Macron Leads Summit No More Upper-Class Tax Cuts Mr. President! APPLE CARD IS HERE-SHOULD YOU APPLY? THE GIG ECONOMY CREATES A PERMANENT UNDERCLASS 5 REASONS IT’S SO HARD FOR LOW-INCOME INDIVIDUALS TO MOVE UP TO THE MIDDLE CLASS ARE YOU PART OF THE MIDDLE CLASS? USE THIS CALCULATOR TO FIND OUT? WELLS FARGO IS A DANGER TO THE MIDDLE CLASS The Financialization of Everything Is Killing the Middle Class
financially healthy
American Middle Class

10 Signs that Say You are Financially Healthy

Have you always been busy saving your money and planning the budget that works until you burst? Did you ever bother to check how your money is faring? Sometimes, budgeting and saving are not enough to establish yourself as someone who can be regarded as a financially healthy person. You need to make sure that your hard-earned money is doing well.

Here is a list of 10 things to help you determine if you are financially healthy.

  1. Your Income is Greater than Your Expenses

Are you spending more than the amount of money you earn? This is an important question that you must answer with all honesty.  It may seem like a trivial question, but it should prompt you to scrutinize your finances and how they are doing. Did you even try to reign in your spending?

If you are spending more than you earn, try to analyze how you spend your money and do something about it now. You may need to cut back some of your expenses, especially those that you don’t need to survive. Your objective is to make sure that you spend less than you earn. That way, you don’t need to worry about living beyond your needs.

  1. You Can Cover Unexpected Expenditure with Your Emergency Fund

It is vital to have enough money in your emergency fund so you can get by in case of an urgent situation. This includes unexpected travel, ill pets, accidents, hospital emergency, and others. You will never know when your emergency fund may come in handy. It is essential to keep adding some of your earnings to your emergency fund. House repairs can also be regarded as a form of emergency. You will be able to save yourself from dealing with more troublesome repair issues when you contact a repairman to help you fix things in your house right away.

  1. You have Considered or Already Practicing the Long-Term Saving Scheme.

You can do many things to make sure that you will have a secure and comfortable future. You may invest your money in a profitable venture, which you need to analyze thoroughly before taking a plunge. A certain business venture may be profitable but demands that you give your full-time support, which is impossible for you to do due to your day job. It may be profitable but does not sit well with your current circumstance. Choose something that will not make you compromise your current situation and still earn extra money.

Are you paying your car insurance premiums annually? If you have the means, paying your premiums annually is much better than making monthly payments. It can help a lot in easing your worries so you can focus on making yourself more productive.

  1. You No Longer Worry About Where to Get Money Each Day

Worrying about where to get money or arguing with your partner regarding your finances almost every day can prevent you from attaining harmonious relationship with one another. Arguments that involve money often harm the relationship between husband and wife or partners. Take a break for a while and ask yourself about the thing that’s stressing you out whenever you think about your financial situation.

Do you keep thinking about what you should eat at dinner? Are you bothered about your daily expenses? Are you at your wit’s end thinking of ways to stretch your budget without giving up something? You need to define the issue first to find the most fitting solution to the problem you are facing. There is a huge possibility that money is not the main issue but something else. If you are used to eating expensive, delicious takeouts for dinner, it’s about time to learn how to cook delicious food and save money. Takeouts are often costly.

  1. You have no Debt to Pay

If you have no debt to pay, you should congratulate yourself on a job well done. It is not easy to survive in today’s world without taking a loan. Having no debt is an achievement that you should be proud of. as a matter of fact,  only 1 out of 4 American consumers live without debt.  But, staying debt-free is another story. You need to do everything in your power to ensure that you will continue living a debt-free life.

  1. You Can Pay Your Monthly Bills and Other Expenditures with Ease

If you can pay all of your monthly expenses without trouble and still have some leftover cash, you are really doing pretty well. However, don’t even think about splurging and forget about your goal to be financially healthy. You can put the extra cash into your emergency fund. That way, your emergency fund will continue growing. This can give you added peace of mind in case an emergency occurs.

  1. You have Considered Paying Extra Contributions or Invested in Super Account or Fund.

You need to take advantage of making extra contributions while your health and earning capacity permit it. This can help ensure the steady growth and strength of your finances even when you retire. Anyone in their 60s will tell you that they should have paid more care to their super when they were younger and able.  Click here to read our article on how to manage your money.

  1. You No Longer Live Paycheck to Paycheck

You should not continue living paycheck to paycheck if you want to be financially healthy. You may be okay now, but the increasing cost of living will soon make it difficult to rely solely on your salary. You need to pay for your obligations and buy daily necessities. You need to have a source of passive income that can help augment your finances. That way, you will no longer rely on your paycheck to live a comfortable life.

  1. You Can Settle Your Charge or Credit Cards in Full Every Month

To continue living a debt-free life, you need to make sure that your credit or charge cards are paid in full every month. If your credit card bill exceeds your monthly pay, you may need to stop using your credit cards. You are spending more than you should, and your credit cards are turning you into their slaves. When you noticed that you had become a slave to your credit cards, it’s time to put them away and save yourself from falling into the brink of debt.

  1. Losing Your Job Becomes a Trivial Matter

If you are financially healthy, losing a job is not something dreadful for you because you can still pay your monthly obligations on time and in full. Your other income sources may not be doing well, but you still have your emergency fund that can cover everything for a while. This is only temporary until you find another job, or your other income sources begin to go well.

BACK TO TOP
Continue Reading
Click to comment

Leave Comment

Advertisement
American Middle Class / May 22, 2021

What to Make of America’s Inflation Spike?

Since the late 1920’s when statistics began to be officially compiled, the US inflation rate...

American Middle Class / May 09, 2021

How to Use Credit Cards Wisely

Lenders want you to be creditworthy before they can finance that house, car, or new...

American Middle Class / May 02, 2021

Time to Start Paying Back the Covid-19 Hardship Withdrawal

Covid-19 hardship withdrawal was made possible by the Coronavirus Aid, Relief, and Economic Security (CARES)...