It is easy to become stressed about your finances, especially when there is always another bill to pay. However, when we feel overwhelmed, it is easy to lose track of how we are really doing with our finances. We look at 17 signs that your finances are healthier than you think.

You Pay Your Bills on Time

Many of us are familiar with missing a bill occasionally, but we should always look at the bigger picture. Consistently meeting your minimum payment obligations demonstrates responsible Credit management, and the odd late payment will not make a huge impact on your credit rating.

You Have an Emergency Fund

Even a small emergency fund can be a lifesaver for unexpected expenses, such as your car breaking down or an emergency renovation. Having a buffer shows you’re prepared for Financial curveballs, and even though you have issues with your cash flow now and again, you focus on the bigger picture.

Your Debt is Under Control

High-interest debt can be a burden, but manageable debt payments with a plan to pay them down indicate financial progress. Taking out loans and credit cards and making all repayments can improve your credit rating.

You’re Not Living Paycheck to Paycheck

People in true financial distress often have to borrow money to cover their expenses until payday or may go without essentials until they work overtime. If you can comfortably cover your essential expenses without relying on credit between paychecks, that’s a positive sign of financial stability.

You’re Saving Regularly

You may not be financially stable as you do not save significant portions of your monthly wage. However, even negligible, consistent contributions to your savings account show a commitment to your financial future.

You Don’t Fear Checking Your Accounts

Avoiding your bank statements due to anxiety suggests financial fear. If you are worried about your bank balance but still take the time to check it each month, you are likely in a much better position than you think. Regularly checking your accounts allows you to stay informed and in control.

You Can Afford Small Splurges

If you often feel guilty about buying yourself treats now and again, try to be kinder to yourself. Occasionally enjoying a treat without feeling excessive guilt demonstrates a healthy balance between saving and enjoying life, so try not to catastrophize when you do something nice for yourself.

You Have a Budget

Creating a budget and making a genuine effort to follow it, even with occasional adjustments, shows responsible financial planning. The next time you feel stressed about your spending, log on to your budget spreadsheet to remind yourself how well you are doing.

You’re Not Afraid to Talk About Money

Open communication about finances with partners or family demonstrates financial maturity and can cause stress. You may be in charge of your finances more than you believe if you often find yourself working through your money woes with your loved ones.

You’ve Got Future Goals

Having financial goals, whether it’s a dream vacation, a down payment on a house, or a comfortable retirement, motivates you to save and plan for the future. If this sounds like you, your financial position is likely to stay on track for the majority of the time.

Unexpected Expenses Don’t Derail You

While unexpected costs can be inconvenient, handling them without going into extreme debt shows financial resilience. If you were truly at sea with your finances, you would be scrambling for every dollar you could find when unexpected expenses cropped up.

You’ve Compared Your Spending

One of the worst things you can do is compare yourself to others rather than focus on what you are comfortable with. Instead of comparing how much money you and your friends have, you should focus on your own financial situation and goals. Focusing on yourself demonstrates financial self-awareness.

You’ve Refinanced Debt

From time to time, we must consider taking on debt to cover significant life events, such as buying a new home or getting married. Taking advantage of lower interest rates through refinancing shows a proactive approach to managing debt and does not have to mean the end of a good credit rating.

You’re Not Afraid to Ask for a Raise

Feeling confident enough to advocate for your worth at work demonstrates financial self-belief. If you always do your best to get a pay rise and are assertive enough to push for a bonus, you definitely show financial acumen.

You’ve Helped Others Financially

While prioritizing your financial health is essential, occasionally helping others demonstrates financial security and generosity. If you regularly offer to help friends and family or donate to a charity without leaving yourself short, you know how to manage your money effectively.

You’re Not Obsessed with Keeping Up with the Joneses

Focusing on your own financial goals and avoiding unnecessary spending to impress others reflects financial independence. You may feel like you are missing out occasionally, but at least you are not straining your finances for things you don’t need.

You Feel More Secure About Your Financial Future

A growing sense of security and confidence about your financial situation is a strong indicator of financial well-being. Try to think of your long-term performance rather than just focusing on the two months you have struggled financially.

The post 17 Critical Signs You’re Financially Healthier Than You Think appeared first on The Frugalpreneur.