You Have an Emergency Fund: Having savings that can cover at least 3-6 months of living expenses is a strong indicator of financial health.
You’re Debt-Free or Managing Debt Well: If you have no debt or you're actively paying down what you owe, especially high-interest debt like credit card balances
You Contribute Regularly to Retirement Accounts: Regular contributions to retirement accounts such as a 401(k), IRA, or Roth IRA
You Own Assets: Ownership of appreciating assets like real estate, stocks, or a business indicates financial growth potential beyond immediate cash flow and savings.
Your Net Worth is Increasing: If your net worth—what you own minus what you owe—is steadily increasing, it's a clear sign of improving financial health.
You Can Afford to Live Below Your Means: Being able to comfortably spend less than you earn, and using the surplus for savings or investments
You Don't Worry About Monthly Bills: If paying for your monthly expenses is not a source of stress
You Have a Good Credit Score: A good credit score (typically seen as 700 or above) reflects responsible credit management and is a key indicator of financial health
You Can Make Financial Choices: Being in a position to make choices, such as taking a vacation