You are constantly getting advice, tips and tricks thrown at you when it comes to financial planning. Whether it’s how to lighten your high-interest debt load, pad your retirement accounts or generally reach your financial goals, there may already be signs that your money management and personal finances are a bit healthier than you previously thought.
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In fact, your credit score and savings accounts might actually be in decent shape, according to financial influencer Humphrey Yang. In a YouTube video, he shared several signs you might be in better financial health than you think.
You Don’t ‘Wealth Signal’
If you use your wealth to buy designer clothes, sneakers or luxury cars instead of saving or investing, your financial health might be worse than you believe. As another YouTube finance pro, Jaspreet Singh, has said, “Make yourself rich first by using your money to buy investments.”
Your net worth will grow much faster by investing rather than using your credit card to go on a shopping spree. If you are abstaining from this impulsive behavior, congrats — your money health is good.
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You Have at Least $2K in Emergency Savings
Many finance experts recommend having three to six months of living expenses saved in an emergency fund. However, if you have at least $2,000 in savings, you’re doing better than most Americans.
The term “financial health” may be subjective, but your objective should be to reach your long-term goals. If you lose your job or have surprise medical bills without an emergency savings, you might not be able to make bill payments without spiraling into debt. Having at least a couple grand in cash as a cushion can help you avoid this — and you should feel fortunate if you have it.
You Meet Your Spending and Savings Targets
If you have a budget with savings and investing goals included, you’re ahead of most Americans who are just living paycheck to paycheck.
Yang said he uses a customized Google Sheet for budgeting. “The best thing about tracking your expenses is that not only is that going to show you that you’re doing well financially, you can also track how your expenses trend over many different years.”
Tracking your income, expenses and spending can also show if your financial actions align with what’s important to you. “If you’re able to gauge your own financial success based on your own standards and beliefs, I think that this is a huge sign that you’re doing well financially,” said Yang.
Final Take To GO
The core of these observations lies a simple philosophy, outlined in the book “The Gap and the Gain” by Dan Sullivan and Dr. Benjamin Hardy, which recommends looking at how far you’ve come rather than how much further you still have to go when measuring progress towards your goals.
People who train their brains to think this way will feel more motivated to work toward their goals and feel more fulfilled by every achievement.
“Achievement without fulfillment is the ultimate failure,” Kien Vuu, M.D., a performance and longevity doctor, said in the OrangeBall Creative blog.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 3 Key Signs You Are More Financially Healthy Than You Realize
