Four Signs You Are in Control of Your Finances
No matter how much money you make, it may seem like you never have enough money or (better alternative) that you are on the right track. A study by the Consumer Financial Protection Bureau has identified four factors that suggest when you are financially healthy.
The study included in-depth interviews with 59 working-age and older consumers and 30 financial experts to determine what “financial well-being” really means.
Vanguard summarizes research findings on what owning money usually means:
According to the survey, gaining control over your finances involves the following four elements:
- You can pay your bills on time without worrying about having enough money. People who are in control “manage their finances, their finances do not control them,” study participants agreed.
- You are financially prepared for emergencies. When the unexpected happens, you have enough savings, insurance, and support from friends and family to cope with a job loss, medical emergency, or stove replacement.
- You have a plan for each of your financial goals, and you are well on your way to achieving those goals.
- You have the financial freedom to enjoy life: you can take a vacation, go out to dinner at a restaurant, show generosity to your family, or go back to school if you like.
If you meet the four criteria above, congratulations, you can try not to worry so much about money. For the rest of us, these are good goals to work towards.
You can read the study at the link below.