How To Tell If You’re Financially Stable
It’s a goal shared by many across all stages of life, but what does it mean to be financially stable?
On a very simple level, being financially stable means you make more money than you spend. You can afford necessities, but also it can mean you have at least some disposable income. You have control over your income and are not struggling day to day, but it doesn’t quite mean that you are wealthy.
While being financially stable can mean different things to different people, there are some common signs that someone is doing well (or well enough) financially. Below are some of the clear signs that you're financially stable.
Signs That You’re Financially Stable
1. You Can Handle Your Bills And Other Payments Responsibly
To be fair, being financially stable is a bit more complicated than bringing in more than you spend. It means that you can cover your monthly bills and pay on time each month. It also means that if you have credit cards or loans, you can take care of those as well. Being financially stable also likely means you don’t take out too many credit cards and know the appropriate time to use them.
2. You Can Create A Budget And Follow It Closely
Having control over your finances can only be accomplished by creating a realistic budget outlining your income, your bills, your wants, and your needs — and sticking to it no matter what. Being financially stable doesn’t just mean that you can afford a lot of stuff. It means that you know which purchases are “necessary” and avoid too much splurging on items that are definitely in the “want” category.
3. You Have A Regular Financial Buffer
It’s not only financially stable to meet your basic needs by paying your bills on touch each month. Another way to tell is if you can have something left over after those needs are taken care of. It’s something like an informal savings account, though you should have one of those, too.
Call it a buffer. The amount can be anything you’d like it to be but shoot for around $500 or so and go from there. And speaking of savings, saving between 2% and 5% of your income each month also falls into the financially stable category.
4. You’re Able To Invest
Another characteristic of financial stability: Being able to set aside another 2%-5% of your monthly income on investments. Investing is a clear pathway to growing your wealth and an essential part of a comfortable retirement.
There are many options here, including a 401(k) plan, a brokerage account online, stocks, and real estate. It’s all pretty much good, and if you struggle with deciding what to invest in, there are countless apps, and websites (and even live people!) that can offer advice and guidance.
5. You Track Your Spending
When it comes to spending, a monthly budget provides guidelines on your goals for spending on everything from food and utilities to little extras. But tracking your spending down to the last penny is a good sign that you are financially stable. Such tracking of spending can help you adjust your habits to meet financial goals in the short and long term — and stay as financially stable as you can even when facing a financial emergency.
6. You Attack Debt
Financially stable people may have debt. They just aren’t afraid of it. In fact, their top financial goal is likely to pay down their debt regularly until it’s eliminated. This can be done through regular budget planning but also by having a dedicated budget to kill debt.
Consider Alternative Help, Such As An Online Title Loan
Everyone faces financial emergencies from time to time. Even if you’re financially stable, an emergency such as an unexpected hospital bill, a necessary home or car repair, or last-minute travel expenses can derail your financial goals.
An online title loan is an option to help you move past a financial emergency quickly and easily. Using your vehicle’s title as collateral, you may qualify for an online title loan of up to $15,000 with one of At Home Title Loans’ certified vendors. The best part is that you don’t even need to leave the comfort of your house to get your money!
Simply fill out the online title loan inquiry form on our homepage. A loan representative will give you a quick call to discuss online title loans and the few required items. They will also guide you through the rest of the process. Once you qualify, you get the cash you need either the same day or the very next business day.
Get Started Today
Being financially stable is an accomplishment, but a financial emergency can easily impact that stability. A completely online title loan may help. Start — and complete the easy qualification process — entirely online today. We’re here to help you get back to financial stability in no time.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.