If you recognize these 8 signs, you’re in better shape financially than the average person

If someone’s got a hefty savings account, you know they’re financially stable. If they’re debt-free, you know they’ve got their finances on lock.

But hey, it’s not always that black and white. Financial wellness, much like the human mind, is a complex puzzle. It’s not just about the dollars in your bank account but also about smart management, strategic planning, and a pinch of luck.

But some folks seem to have cracked the code. And that’s usually because they can spot these 8 specific signs.

Welcome to the world of personal finance mastery!

1) Savings are as automatic as breathing

Money can be as unpredictable as emotions.

Sometimes it’s there, sometimes it’s not, and once you get your hands on it, there’s a chance it might slip away before you know it. All you can do is plan for the best and prepare for the worst.

However, folks who are financially sound often have this little trick up their sleeves. They’ve made saving money as automatic as breathing.

But that’s not by chance. In fact, these individuals are in better shape financially because they’ve set up automatic transfers to their savings accounts, making it a no-brainer.

They understand that to weather financial storms and unexpected expenses, a solid savings buffer is crucial. And when it comes to saving, they believe in the ‘out of sight, out of mind’ mantra.

2) Living below your means is your second nature

Just like emotions, our wants and needs can often get tangled up, making it hard to distinguish between the two. But, those who are financially savvy know the difference and prioritize accordingly.

This one hits home for me.

I remember getting my first paycheck. The temptation to splurge on that shiny new gadget or a fancy dinner was strong. But I took a step back and asked myself a question: “Do I want it or do I need it?”

It wasn’t easy, but over time, this questioning became a habit. Living below my means became second nature to me, not as a sacrifice, but as a conscious choice towards financial freedom.

It’s about making sure that I have enough for tomorrow, even if it means saying no to something today.

So, if you find yourself consistently spending less than you earn, pat yourself on the back! You’re rocking this financial wellness thing.

3) Credit cards are a tool, not a crutch

Credit cards can be as tricky to handle as a double-edged sword. Used wisely, they can help you build a strong credit history and offer perks like cash back or travel rewards.

But when misused, they can lead to a downward spiral of debt.

People who are financially sound view credit cards as tools, not crutches. They know the value of paying off their balances in full each month, avoiding interest charges and keeping their credit utilization low.

Did you know that according to a Sallie Mae study, only 60% of credit card users pay their balance in full each month? It’s true! By paying your balance in full, you’re already ahead of 40% of credit card users.

If your credit card is a tool in your financial arsenal rather than a crutch you lean on, you’re certainly in good shape financially.

4) You’re playing the long game with investments

Financial success can be as much a marathon as it is a sprint. It’s about strategic planning, patience, and understanding that the best returns often come to those who wait.

People who are in a better financial position understand this well. They’re not just saving money, they’re growing it. They’ve learned to play the long game with their finances by investing.

Whether it’s in stocks, bonds, real estate, or a retirement account, they’re putting their money to work.

They’re aware that while there might be ups and downs in the short term, the potential for growth over the long haul is significant.

5) You’re not afraid to talk about money

Money, much like certain emotions, can often be a taboo subject. It’s something we all deal with, but rarely discuss openly.

But in my experience, I’ve noticed that those who are financially secure aren’t afraid to talk about money. They understand that discussing finances – be it budgeting, investing or debt management – is crucial for financial growth and literacy.

Personally, I’ve found that by opening up about my financial journey, not only have I learned a lot, but I’ve also been able to help others who might be struggling with similar issues.

So if you’re comfortable discussing money matters and actively seeking knowledge or sharing your own experiences, you’re likely on a stronger financial footing than you think.

6) You’re okay with saying no to instant gratification

Much like resisting a wave of emotion, delaying gratification when it comes to spending can be a real challenge.

The allure of buying something you want right now can be potent. But those in a solid financial position often have the ability to say no to these immediate desires.

They understand that saving for bigger goals in the future often means passing up on smaller, immediate pleasures today.

It’s not about depriving themselves, but about making conscious choices that align with their long-term financial vision.

When you find yourself frequently opting to save rather than splurge, that’s a sign you’re doing better than the average person in managing your finances.

7) You’re proactive about your financial health

Just like you wouldn’t ignore symptoms of physical illness, those in good financial health don’t ignore signs of financial distress.

They don’t wait for a financial crisis to hit before they react. Instead, they’re proactive. They regularly review their budgets, keep track of their spending, and adjust course as necessary.

They know that staying on top of their financial situation helps them catch potential issues early and make adjustments before small problems become big ones.

Now if you’re regularly checking in on your financial health and making adjustments when necessary, you’re definitely on the right track.

8) You view money as a tool, not a goal

Here’s the real kicker. Those who are financially secure see money not as the end goal, but as a means to an end.

They understand that money is a tool that can provide them with the freedom to live the life they want.

It’s not about accumulating wealth for wealth’s sake but about using it to achieve their goals, like providing for their families, traveling the world, or starting their own business.

So if you view money as a tool to live your life on your own terms, then you’re definitely in better financial shape than the average person.

Well done!

Recognizing your financial strengths

If you’ve made it this far, chances are you’ve recognized that being in good financial shape is not just about having a fat bank account.

It’s about understanding the value of money and using it as a tool to achieve your goals and live life on your own terms.

Being financially sound isn’t about having more than others. It’s about making conscious decisions, planning for the future, and being proactive about your financial health.

John D. Rockefeller once said, “I believe that thrift is essential to well-ordered living.” If you’ve recognized these 8 signs in your life, then you’re not just financially savvy – you’re living a well-ordered life.

Reflect on this journey, and remember – money isn’t the goal, it’s the tool that lets you live the life you want.

Isn’t that something?