Most people worry that they may never master their personal finance. According to a recent study, about two-thirds of people globally worry about money on a regular basis, regardless of their economic level.
You may be doing better with your personal finance than you imagine. There are signs that can prove you are doing better than most people.
Most people tend to compare their personal finances with others, especially with those that live extravagant lives.
You assume their finances are in order and assume yours isn’t, which is a bad way of thinking for several reasons.
Without further ado, let’s take a look at five signs that you have mastered your personal finance.
1. You don’t stay up all night worried about money
According to research, about 78% of adults are lying awake at night owing to financial, interpersonal, and other concerns.
People that have good financial position usually have a restful, deep sleep when they go to bed at night.
These people secure gain access to this non-financial benefit as a result of their sound money state.
However, this doesn’t mean you don’t have money problems but they are minimal.
2. You are not scared of losing your job
Having no fear of losing your job is one of the finest indicators to show that you are financially stable. The sad reality is that the majority of people globally live paycheck to paycheck. Even for a short while, losing their jobs would be financially disastrous.
According to a recent Ipsos survey for the World Economic Forum, 54% of working adults are concerned about their jobs in the coming year.
You don’t worry about losing your job because your finances are balanced, at least not in terms of how it would affect them.
3. You are never late with payments
According to research, six out of ten people worry about their bills and nearly half pay them late.
This is partly due to the fact that you always have enough money to pay your expenses, as well as the fact that you prefer to be ahead of schedule rather than behind with your finances.
This is another important factor in why you don’t worry too much about your money. You may rest easy at night knowing that all of your expenses have been paid and everything is in order.
4. You stick to your monthly spending budget
Setting a monthly budget and sticking to it strictly requires a lot of discipline.
The importance of budgets cannot be overstated, regardless of income level.
No matter what level of income you have, budgets are important.
If they are more dedicated to living within their means, adhering to a budget, and creating a strategy to save each month, someone making $50,000 a year can save more money than someone making $150,000.
In order to keep your finances in order, budgets should be realistic enough to cover all of your spending requirements while also establishing strict but fair limitations on unnecessary expenditures.
5. Your net worth is rising
All of your debts, including credit debt, and mortgage, are included in your net worth. However, it also covers your possessions, such as your cash savings, investments, retirement money, home equity, and even the worth of your car.
You want your net worth to increase over time. Due to early-life debt such as car payments, and other obligations, it’s typical for young individuals to have a negative net balance.
Your net worth increases when you save a little each month and reduce your debt. Even while this financial growth is taking place slowly, it will eventually have a significant impact.
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