Financial stability is the capacity of facilitating and improving economic procedures, along with seamlessly handling risks. It is believed to be a continuum – changeable down the road but consistent with certain combinations.
Regardless of the more or less proper definition, the modern-day individuals have different opinions regarding financial stability. To know if you have hit the mark, please lookout for the signs mentioned below.
- You never fight with your spouse over finances
Do you and your spouse fight frequently over how much to spend and save? This is an indication of underlying financial tension or that one of you places excessive value on money.
On the contrary, do you and your spouse are comfortable with your current financial situation? Have you created money goals and are accomplishing them gradually through innovative strategies? If so, it is possible you are stable.
- You do not rely on credit cards, or you pay them full each month
The experts carrying out financial wellness in South Africa programs said using credit cards and paying them off each month for receiving rewards is fine. But, using them because of the budget shortfall is not.
The people who do not consider credit cards a necessity are actually doing great in their life, and others must learn from them.
- You have an excellent emergency fund
A full emergency fund can cover expenses of at least a year. If you have ample money saved for times when life may not be kind, you are on a track that requires no mending. But, if you havekept aside almost no money, please open a savings account right away.
- You agree to spend on special occasions
If you can celebrate special occasions without hassle, great! But, if the mere thought of spending an extra one month generates fear, your financial situation requires immediate attention.
No one can deny that money makes life better. Are you afraid of spending money on an anniversary party or an annual trip because you have problems? Or is it because you perceive money as the most significant thing? Either way, your finances might need a tad tweak.
- Paying bills do not call for an extensive plan
When you are struggling with your income, you will need an extensive plan to pay the commonest bills. Creative financing has become a must.
When you are financially stable, you pay the bills as soon they come and do not give them a second thought. It seems like a chore that you need to complete within a stipulated period.That is great, right?
- You think before you buy
No, you are not paranoid about purchasing, or you have not bid farewell to luxury, but you think before you buy something. The money-wise people, after all, do not spend on whims. Instead, they determine whether the concerned purchase will incorporate value to the life.
According to the experts conducting programs of financial wellness in South Africa, if a person has resonated with half of the signs stated above, he/she is off to a good start. Always see the money you are earning is working in your favor. The key is to make the most out of it.