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8 signs that you’re financially healthy ๐Ÿฅฆ

signs that you're financially healthy

8 signs that you’re financially healthy

Introduction ๐Ÿ‘‹

There are always lots of headlines in the news about physical and mental wellbeing. ๐Ÿง 

But what about your financial wellbeing? ๐Ÿ’ฐ

Financial health and wellbeing are just as important as your physical or mental health. ๐Ÿ‘ฉโ€โš•๏ธ

Your financial health can have a huuuge impact on your life. ๐Ÿ’ธ

Money can:

  • Pay for your basic needs e.g. shelter, food, safety, healthcare ๐Ÿ•๏ธ
  • Reduce stress in difficult situations e.g. your car breaking down, losing a loved one who helps you financially ๐ŸŒช๏ธ
  • Pay for experiences that can make you happy (Research has shown that life experiences can bring us lasting happiness. โ˜€๏ธ)
  • Give you choices e.g. where you live, taking holidays, leaving a relationship, starting a business โœจ

All of these things impact your wellbeing and health. ๐Ÿ’–

Today we’re going to show you the top 8 signs that you’re financially healthy! ๐Ÿฅฆ

Disclaimer: This website provides information for guidance and educational purposes only. The Grown-Up School does not provide regulated financial advice. You can seek independent financial advice from a suitably qualified and regulated professional advisor. Check out our disclaimer policy for more information.

1. You spend less than you earn โš–๏ธ

In our “How to keep control of your money ๐Ÿ’ธ” article we explain that the trick to always having enough money is to:

โ€œMake a good amount of money โ€“ spend as little of it as possible.โ€ ๐Ÿ’ฐ

If you’re spending less money than you earn, you’ve got the balance right!

You’re earning enough to cover the cost of your lifestyle. โš–๏ธ


On the other hand – if you’re constantly spending more than you earn, you could be heading towards a debt spiral. ๐ŸŒช๏ธ

See our article How to avoid debt problems ๐ŸŒช๏ธ to understand how debt problems happen, and how to avoid them! ๐Ÿง˜โ€โ™€๏ธ

If you’re someone who always spends less money than you earn

Congratulations – this is a sign that you’re financially healthy! ๐Ÿฅฆ

2. You pay your bills on time (and in full!) โœ…

Being a grown-up can be expensive! ๐Ÿ’ฐ

There are lots of bills that grown-ups have to pay, and it can be difficult to keep on top of them! ๐Ÿ—ป

Knowing what bills you need to pay, making sure they’re paid (and in full!), is important to keep on top of your finances.

What bills should I be paying? ๐Ÿ’ธ

If you don’t keep up with your bills, you could face problems like:

  • Losing money ๐Ÿ“‰
  • Falling into a debt spiral ๐ŸŒช๏ธ
  • Your bills increasing ๐Ÿ“ˆ
  • Getting evicted (having to leave your home) ๐Ÿ“ฆ
  • Your credit rating going down (What is a credit rating?) – (making it more difficult for you to borrow money in the future) ๐Ÿ‘Ž
  • Getting taken to court to make you repay the money ๐Ÿ‘ฉโ€โš–๏ธ
  • Damaging your relationships with friends/family ๐Ÿ’”
  • Getting a court fine ๐Ÿ“œ
  • Bailiffs coming to your home and selling your personal possessions to pay off the loan ๐Ÿ“บ
  • Money being taken from your earnings ๐Ÿ’ผ
  • Going to prison ๐Ÿš“
  • Being made bankrupt ๐Ÿฆ
  • Some of your utilities like gas/electric could get cut off ๐Ÿ”Œ

If you’re someone who always pays their bills on time (and in full)

Congratulations – this is a sign that you’re financially healthy! ๐Ÿฅฆ

3. You have enough money in savings to cover living costs ๐Ÿ’ฐ

Day-to-day life can be really expensive. ๐Ÿ’ธ

Even the prices of daily essentials like shelter, food, and fuel can be really high! ๐Ÿ“ˆ

Having savings is important because it can:

  • Help cover emergencies ๐Ÿš’
  • Help you to avoid getting into debt ๐ŸŒช๏ธ
  • Offer financial freedom ๐Ÿ–๏ธ
  • Give peace of mind ๐Ÿง˜
  • Offer protection for the future ๐Ÿฆพ
  • Help you to help others ๐Ÿ’ž
  • Make expensive things a bit less expensive (when you don’t have to borrow money!)๐Ÿš—
  • Give you more security when you make investments ๐Ÿ“ˆ

Did you know?

In June 2021, Yorkshire Building Society found that 1 in 5 UK adults have less than ยฃ100 in savings.

If you have less than ยฃ100 in savings, it’s a great time to start saving! ๐Ÿฝ

8 reasons to start saving money now ๐Ÿท

If you’re someone has enough savings to cover your living costs

Congratulations – this is a sign that you’re financially healthy!๐Ÿฅฆ

4. You have enough savings to support you in the long-term ๐Ÿง“

Not only do you need savings to cover day-to-day costs, but you also need savings to support you for things in the long term! ๐Ÿ“†

This could involve having enough money for things like:

  • Moving house ๐Ÿก
  • Retirement ๐Ÿง“
  • Raising a family ๐Ÿผ
  • Getting married ๐Ÿ’‘
  • Funeral costs when someone passes away ๐Ÿฅ€
  • Buying a home ๐Ÿ”‘
  • Getting ill ๐Ÿค’
  • Losing your job ๐Ÿ’ผ

If you’re someone who has enough savings to support you in the long-term – Congratulations – this is a sign that you’re financially healthy! ๐Ÿฅฆ

5. You have insurance to cover yourself for emergencies ๐Ÿš‘

Getting insurance is where you pay money to “protect yourself” from different emergencies.

If you find yourself in the emergency, you will often be given emergency money to help you.

You can pay for insurance to help you in situations like:

  • Your phone breaking (mobile phone insurance) ๐Ÿ“ฑ
  • Pets getting sick (pet insurance) ๐Ÿถ
  • Your car getting stolen (car insurance) ๐Ÿš—
  • A house fire damaging your building (buildings home insurance) ๐Ÿ”ฅ
  • Flooding damaging your belongings at home (contents home insurance) ๐Ÿšฟ
  • Losing your job/income (income protection) ๐Ÿ’ผ
  • You or your partner passing away (life insurance) ๐Ÿฅ€
  • You getting a critical illness (critical illness cover) ๐Ÿฉบ
  • Having troubles on holiday like getting burgled (travel insurance) โœˆ๏ธ

If these emergencies happen you can get paid a sum of emergency money when you have insurance cover in place.

If you’re someone who has the right insurance for emergencies

Congratulations – this is a sign that you’re financially healthy! ๐Ÿฅฆ

6. Your debts are under control ๐ŸŒช๏ธ

Itโ€™s really common to need to borrow money at some point (even celebrities do it!)- but for many people, debt becomes a problem. โ˜น๏ธ

Struggling with debt can result in some really difficult consequences like finesbill increaseseviction (having to leave your home), or potentially even going to prison. ๐Ÿš“

It’s very easy for borrowing money to turn into a difficult debt spiral

Making sure that your debts are under control are an absolute must when it comes to being financially healthy! ๐ŸŽ

If you’re someone who has their debts under control

Congratulations – this is a sign that you’re financially healthy! ๐Ÿฅฆ

How to start looking after your money ๐ŸŒฑ

Is borrowing money a bad thing? ๐Ÿคทโ€โ™€๏ธ

How to avoid debt problems ๐ŸŒช๏ธ

7. You have a credit score that would let you borrow comfortably ๐Ÿ“ˆ

What is a credit rating? ๐Ÿ“ˆ

Financial emergencies are a lot more common than you think. ๐Ÿ”ฅ๐Ÿš’

One minute your bank account seems full – the next you find yourself needing money for things like:

  • Unexpected bills ๐Ÿงพ
  • Car repairs ๐Ÿš—
  • Pet veterinary bills ๐Ÿถ
  • Increased shop prices ๐Ÿท๏ธ
  • Phone repairs ๐Ÿ“ฑ
  • Broken fridges/freezers/washing machines ๐Ÿ”ง
  • Home repairs ๐Ÿก

Not only are these events really stressful

It makes it so much worse when you have to worry about scraping the money together to cover those costs. ๐Ÿ˜Ÿ๐Ÿ’ธ

Ideally, you’d have emergency savings or insurance to cover these costs – but having a good credit score means that you have the option of borrowing too. ๐Ÿ’ณ

Credit scores are important because:

  • It can make borrowing money cheaper if you have a good score, and more expensive if you have a bad one. โš–๏ธ
  • Problems on your credit score can last for six years. ๐Ÿ“†
  • It can impact whether or not you can borrow money to buy a house with a mortgage. ๐Ÿก
  • It can impact whether lenders will let you borrow money or not. ๐Ÿฆ

If you’re someone with a good credit score

Congratulations – this is a sign that you’re financially healthy! ๐Ÿฅฆ

8. You plan ahead for unexpected costs ๐Ÿ”ฎ

Nobody can predict the future, but the more you try, the better for your finances. ๐Ÿ’ธ

Unexpected costs appear everywhere – so having a plan on how to deal with them, can help to avoid getting caught out. ๐Ÿช

This could involve things like:

  • Keeping an eye on financial news to help you predict changes ๐Ÿ“ฐ
  • Building up savings ๐Ÿ’ฐ
  • Getting insurance ๐Ÿš‘
  • Writing a plan out to deal with different financial emergencies ๐Ÿ“

If you’re someone who plans ahead for unexpected costs

Congratulations – this is a sign that you’re financially healthy! ๐Ÿฅฆ

Conclusion ๐Ÿ‘

So that’s it!

Hopefully you’re feeling more confident about understanding ways to look after your money.

You could be financially healthy if you:

  1. Spend less than you earn โš–๏ธ
  2. Pay your bills on time (and in full!) โœ…
  3. Have enough money in savings to cover living costs ๐Ÿ’ฐ
  4. Have enough savings to support you in the long-term ๐Ÿง“
  5. Keep your debts under control ๐ŸŒช๏ธ
  6. Have a credit score that would let you borrow comfortably ๐Ÿ“ˆ
  7. Have insurance to cover yourself for emergencies ๐Ÿš‘
  8. Plan ahead for unexpected costs ๐Ÿ”ฎ

If you know any friends or family members who might benefit from learning about signs that you’re financially healthy, share this post with them!

Finally, don’t forget to check out our similar articles below!

Similar articles to “8 signs that you’re financially healthy” โฌ‡๏ธ

How to start looking after your money ๐ŸŒฑ

8 reasons to start saving money now ๐Ÿท

Why you need to start thinking (and talking) about money๐Ÿ’ธ

Is borrowing money a bad thing? ๐Ÿคทโ€โ™€๏ธ

200+ ideas to save money ๐Ÿ’ฐ

How to keep control of your money ๐Ÿ’ธ

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