Measure Your Financial Stability With These Parameters
Finance is among such topics which are discussed by many but understood by only a few. Every person wants to be in a position where they can attain the financial freedom or in other words financial stability. Blog: https://financebuddha.com/blog/measure-financial-stability-parameters
Finance is among such topics which are discussed by many but understood by only a few. Every person wants to be in a position where they can attain the financial freedom or in other words financial stability.
Blog: https://financebuddha.com/blog/measure-financial-stability-parameters
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<strong>Measure</strong> <strong>Your</strong> <strong>Financial</strong> <strong>Stability</strong><br />
<strong>With</strong> <strong>These</strong> <strong>Parameters</strong><br />
Finance is among such topics which are discussed by many but understood by<br />
only a few. Every person wants to be in a position where they can attain the<br />
financial freedom or in other words financial stability. The financial stability is<br />
not something which can be measured by the income, bank balance or property.<br />
A person with comparatively lower income or bank balance can also be<br />
financially stable. Here we have got some parameters by which you can<br />
measure your financial stability. Let’s take a test and find out how far our<br />
finance is stable.
You are Happy with <strong>Your</strong> <strong>Financial</strong> Condition<br />
The first sign of being financially stable is that you are satisfied with your<br />
financial condition. When your financial condition brings you joy instead of<br />
panic or fear, you must understand that you finance in under your control. Panic<br />
on finance comes only when you are uncertain if the money which you have is<br />
pretty enough to run the month until the next cash flow.<br />
<br />
You Don’t Need to Argue <strong>With</strong> <strong>Your</strong> Spouse about the Monthly Budget<br />
Both the spouses in a family have a common goal to run the family smoothly.<br />
But while chasing the same goal if you regularly or semi-regularly land on an<br />
argument, then it indicates that your financial conditions are not stable. If you<br />
and your partner both are comfortable with the money which you have then you<br />
have attained the financial freedom.<br />
<br />
Credit Cards are Used Rarely<br />
Having a credit card is common for every wallet. One can measure his financial<br />
stability with the intensity of using the credit card. It is the best situation when<br />
you don’t need to use a credit card. But if you use, you use it very rarely and<br />
pay them off in the next month itself. If you are also practicing the same then<br />
you are likely in a sound financial place.<br />
<br />
You are Ready for <strong>Financial</strong> Emergencies<br />
A financial emergency can come in different ways such as medical emergency,<br />
urgent travel, job loss, vehicle repair and so on. Such situation can start a panic<br />
if you are not financially fit. If you can handle those situations without going<br />
into a debt, then this is the time when you can feel that your finance is just<br />
enough to be called financially stable.
Upcoming Festivals No More Bring Worries<br />
I have come across many people who need to take a personal loan in order to<br />
celebrate a festival. They take a personal loan for buying an anniversary gift,<br />
birthday gift etc. If you are also worried about your spouse’s upcoming<br />
birthday, then you are to go some more to attain financial stability. When you<br />
will be able to celebrate festivals without compromising in the monthly budget,<br />
you should understand that you have got financial freedom.<br />
<br />
You Can Save Money <strong>With</strong>out A Stress<br />
Savings are of two kinds in general- A forceful saving and a habitual saving.<br />
The financial condition when you are struggling to meet both ends, you do a<br />
forceful saving. But along with time when your financial condition will be<br />
improved, you won’t need to struggle for savings. When you are in a financial<br />
condition which is stable, money saving will turn to a habit.<br />
<br />
The Utility Bill Payment doesn’t require a <strong>Financial</strong> Planning<br />
When you are in a good financial condition, your utility bills such such as<br />
electricity, water, LPG won’t seem big to you. You can easily pay these bills<br />
and never delay the payment.<br />
<br />
Retirement And Kids College Expenses Are Covered<br />
The adequate savings for retirement and higher education should be some of<br />
the prominent financial goals of a person. Every person must save for these two<br />
goals before he enjoys his money. The day when you will feel that you have<br />
saved enough to fulfill these two goals, you should understand that the financial<br />
stability has been attained by you.
<strong>Your</strong> Debt-To-Income Ratio is Below 30%<br />
This is one the parameter which can be measured in mathematical terms. The<br />
lower debt-to-income ratio means the higher financial soundness. Every person<br />
must try to eliminate debts as early as possible. No or low debt not only ensures<br />
financial stability, they provide peace of mind to know that you are not under<br />
any debt.<br />
<br />
You Are Selective About Purchasing<br />
Whenever it comes to purchasing an asset, you chose an appreciating as<br />
opposed to depreciating assets. Depreciating assets as car costly dresses are no<br />
more your priority. You better like to invest in wealth building purchases such<br />
as gold, property, shares etc.<br />
<strong>These</strong> 10 parameters are just to check how far you need to in order to attain a<br />
stable Personal Finance. Budget Plan is one of the most important factors which<br />
acts as a ladder to reach that summit. Only attaining a financial freedom is not<br />
what one should aim to, being consistent with the finance is also a considerable<br />
success of any individual.