It’s nice to know when you’re on the right track.
A lot of financial advice, both from us and elsewhere, tends to make certain assumptions about the people reading it. Why would you be seeking financial advice, after all, if you’re not concerned about the state of your personal finances? But speaking as a fairly neurotic person myself, it’s very easy to worry about the state of your finances when there’s nothing actually wrong with them. So instead of going over what you need to do to fix a bunch of potential problems, let’s talk about the signs that you’re doing just fine with your money.
Question one: what’s your current debt situation? Do you only have a little debt from occasionally overdoing it with a credit card? Do you have any debt at all? If your debt is either minor or nonexistent, that’s a sign that you’ve got a good sense of fiscal responsibility. You don’t spend money that you don’t have, or if you do, it’s a negligible amount.
Speaking of fiscal responsibility, question two: can you pay your bills in full and on time? Is your primary source of income enough that you can pay all of your regular monthly expenses off the moment you get them? If so, good, that means you’re living well within your means. Plus, you get the added peace of mind in knowing there won’t be any bill warnings showing up in your mail.
Question three: are your reserve funds sufficient and growing? Saving money is important, so if you’ve got a lot of money banked, that’s a good sign. An even better sign is that your net worth, and by extension your reserve funds, are constantly growing on a yearly basis. You don’t need to be making all of the money in the known universe, but as long as you’ve got more money than you had this time last year, you’re on the right track.
It’s completely normal to worry about everything in your life. Just know that if you were able to answer all of these questions positively, or even just one or two of them, you’re doing something right, and you should feel good about that.