5 signs you are doing right with your money
There are so many choices you can make with your money. Most of the time you make a wrong choice but it’s not all the time; sometimes you make good choice as well. We are highlighting five signs which indicate that you are doing right with your money.
You can pay your bills each month
National Foundation for Credit and personal finance site Nerd Wallet conducted a survey and its results of survey 2015 showed that quarter of American’s are unable to pay their bills on right time.
You can make punctual payments each month without using credit cards or other forms of mortgage to bridge the gap:
- You’re keeping track of the debts you owe.
- You have enough money to wrap your bills.
- You are making a choice where to spend your money where its needed instead of where you want.
Future thoughts force you to save money
You never know what’s going to happen in next 24 hours. No one can predict the future, well this thought make it awfully hard to save money for all those things you don’t know will happen or not, like buying a car or a house, taking an international trip, losing your job, retiring etc.
If you are saving some part of your money for all the ‘future thoughts’ than you’re on a good path.
Credit Card Debt Free Life
According to a survey from Magnify Money found that over 42% of Americans hold an average of nearly $11,000 in credit card debt.
When you are engulfing in credit card debt, you are unable to fulfill your requirements. Your debt doesn’t build or improve anything and secondly it’s expensive as well. The interest rates on credit card debt can easily top 10%, mortgage rates around 4% and student loan interest rates around 4%-6%. If you somehow manage your credit card debt then it’s one of the biggest achievements in your life.
Capable to handle an unpredictable expense
A study from the Federal Reserve which finds nearly half of Americans don’t feel they could cover an unexpected $400 expenditure without dipping into credit or selling something to generate cash.
Could you? Have you?
Perchance you lost your prescription glasses and replace them with a new one. You have broken your phone and get a new one right away. If you can bear an unexpected expenses with just a check or a sigh! You’re doing something right. For the evidence, specialists advise setting three to eight months of living expenses aside in an easily reachable savings account for a probable crisis.
You are not putting all the eggs in one basket
If you are opening multiple accounts for saving and dividing your investment, you’re doing a great job. Not putting all the eggs in one basket reduces the chances of end of your savings. What if you put all the eggs in one basket? And the basket falls? You will not have a single penny to fulfill your needs.
The more opportunities you try, there will be more chance one will help you build wealth — or at least mitigate the gust if another avenue drops off a cliff.