Good decision making means more personal economic security. Having money in your savings account, not having any debt and going on more than 1 holiday a year means that you are stable financially, say researchers who ran a recent study. They spoke to 2000 people and discovered 30 signs you are financially comfortable. These criteria include having £500 worth of spending money after bills.
Not all the criteria are material items, as many of those polled felt that being good with money means making sensible spending decisions. Other people thought that having a reasonable knowledge of ISA’s, pensions, investments & other financial services.
The study showed that less than half would say they were financially comfortable. 56% of those who would say they were comfortable were over 55.
70% of adults believe they are good with money with the average polled having £228 of spending money & £146 put into a savings account. Just over half of the people surveyed can cope with an unexpected bill, and 35% more think they have a reasonable understanding of financial services.
Almost 4 out of 10 respondents feel they will never be financially secure and don’t have any provisions in place for the future. Nearly 50% of adults confessed they don’t like change so have been with the same bank or building society a long time. Here are the 30 signs that you might be in a fortunate financial position.
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A savings account with a reasonable amount in it.
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No outstanding debt
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You have less month at the end of your money
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Not regularly having to dip into savings for normal spending
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Owning your property outright with no mortgage
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Having spare money for a ‘rainy day’
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No anxiety about buying things outside of necessities
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Unexpected emergency purchases are easily obtained (i.e a new washing machine or paying to fix a leaky roof)
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After necessities, bills and savings, having more than £500 disposable income
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Being able to treat yourself every now and then
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Knowing how to budget each month and have enough money to put aside for savings
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You have a good credit score
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Being able to eat out if you feel like it without it having to be a special occasion
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You make sensible spending choices
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You go on more than one holiday a year
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You’re confident about your future
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Being able to go on a last minute holiday without feeling guilty
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You have the ability to make wise decisions about money and spending
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Owning more than one property
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You make good financial decisions without needing advice
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You don’t argue over money with loved ones
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Not having to look at the price of items when shopping
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Having multiple investments
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You have good knowledge about financial services on the market
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You don’t bet or rely on successful bets for income
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You’re generous when it comes to lending money to friends or family and giving to charity
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You pay for everyone else’s meal when out
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You are well-read when it comes to where to put your money
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You buy from the leading brands (clothes, food)
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People ask your opinion about finances – as you are good with advice
Being financially comfortable is about having your money in the right investments, savings and pensions rather than being able to go on multiple holidays or have a flashy car.
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