Author: Paul Michael / Source: Wise Bread
How are you doing with your money? Is your checking account flourishing? Do you have a well-stocked savings account, a growing 401(k), and an emergency fund ready to save you from life’s unexpected money mishaps? That’s great news. These are all signs you’re out of the minor leagues and are now a major player in the world of personal finance.
Here are a few more.1. You’re not panic-checking your financial accounts
When you are in full control of your finances, you know where your money is going, when it’s coming in, and you have a pretty good idea of all your balances at all times. You keep track of your spending and you see the numbers you expect to see when you log into your bank or credit card account.
This is a far cry from the days when checking your accounts was like a horrible game show moment (‘Let’s see if there’s any money behind door Number 1!’). You may not even notice this good habit anymore, but you can feel good knowing those panicky peeks at your balances are over.
2. You never get a huge tax refund (but you don’t owe anything, either)
A massive tax refund is not a smart way to manage your money. By overpaying your taxes, you are giving the government an interest-free loan all year while you miss out on investment opportunities and the benefits of compound interest. Finance rookies overpay their taxes because a refund feels like a windfall. The fact of the matter is that money should have been in your paycheck all along.
No one wants to owe money at tax time, but if you calculate your withholdings correctly, you should come out as close to $0 as possible. That means you’re taking advantage of every cent you earn throughout the year.
3. You have almost no monthly debt
Most of us are going to carry at least some debt for a chunk of our lives; after all, it’s difficult to pay for a home with cold, hard cash. But excessive monthly debts mean that your finances are not as shipshape as they could be.
It’s better to buy a car in cash, upfront, than it is to pay a lease or car payment. Credit card debt that lingers for years is a huge drain on your finances. Other loans or monthly debts almost always carry interest, and that means you’re continuously throwing money away. If you’re living with little to no monthly debt, you have financial freedom; and that means you’re no rookie. (See also: The Fastest Method to Eliminate Credit Card Debt)
4. Your credit score is doing really well
When was the last time you checked out your credit score? It’s a good idea to do it once a month, because erroneous things can creep up. Now, take a look and see where you are on the credit rating scale.
If you’re above 700, it means you’re doing great. Above 750, you’re doing even better. And if you are in that magic 800+ category, you are considered by all credit agencies to be one of…
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