The sun was setting as I sat in my living room, coffee in hand, staring at a spreadsheet that seemed to be mocking me. It was the end of the month, and like most people, I was calculating where all my money had gone. Rent, groceries, utilities…and maybe a few splurges. As I went through the numbers, I couldn’t shake the feeling that I wasn’t doing enough. The world often makes you feel like you’re either swimming in wealth or drowning in debt, and if you’re not Jeff Bezos, you might think you’re failing.
But that night, something clicked. As I tallied up my finances, I realized that, despite my worries, I wasn’t as bad off as I’d thought. In fact, I was doing better than I gave myself credit for. Slowly, I started to notice some “green flags” in my financial life—small victories that showed me I was on the right track.
Here are five signs you’re doing better with your finances than you think. Let’s explore these green flags together and see how they apply to your own journey.
1. You Have an Emergency Fund
When I first heard about emergency funds, I shrugged it off. I mean, who really has money just lying around for “emergencies”? But one day, life threw me a curveball. My car broke down, and the repairs were expensive. I remember thinking, “How am I going to handle this?” Then it dawned on me—I had started putting money away for situations just like this.
That’s the first green flag: You have an emergency fund. It doesn’t matter if it’s not three to six months’ worth of expenses. The fact that you’ve started building one shows you’re thinking ahead. Most people live paycheck to paycheck, so if you’ve managed to set aside even a small amount for the unexpected, you’re already doing something right.
Quote: “Don’t wait for a crisis to create an emergency fund. Prepare in times of calm for times of storm.”
An emergency fund is more than just cash in the bank; it’s a safety net that provides peace of mind. You’re not scrambling when life throws a wrench in your plans. And trust me, that’s a sign of financial progress.
2. You’re Paying Down Debt
Debt can feel like a dark cloud following you everywhere you go. I remember a time when the thought of paying off my student loans and credit card bills felt like trying to empty the ocean with a teaspoon. But then I realized something: I was actually making progress.
If you’re paying down your debt—even slowly—that’s a huge green flag. It’s easy to focus on the total amount you owe and forget to celebrate the small victories along the way. But every payment you make reduces the burden, and that’s worth recognizing.
Even if you’re only paying the minimum on a few bills while attacking the big ones, you’re moving forward. That’s better than staying stagnant or, worse, piling on more debt.
Quote: “The journey to financial freedom starts with one small step—paying off your first dollar of debt.”
It may feel like you’re stuck, but if you’re consistently reducing what you owe, you’re on the path to financial freedom. Keep going, and remember: slow progress is still progress.
3. You Live Below Your Means
This one hit me like a ton of bricks when I first realized it. There I was, thinking I wasn’t making enough money, but then I noticed something: I wasn’t overspending. Sure, I wasn’t living lavishly, but I wasn’t in constant fear of my bills either.
Living below your means is a powerful indicator that you’re doing better financially than you think. So many people get caught up in lifestyle inflation—buying bigger, better things as soon as they get a raise. But if you’ve learned to resist that temptation, pat yourself on the back.
You don’t need to drive the latest car or have a closet full of designer clothes to be successful. In fact, being able to live comfortably without maxing out your income is one of the best financial habits you can have.
Example: Think of Warren Buffet, who, despite being one of the wealthiest people in the world, still lives in the same modest house he bought decades ago. If living below your means works for a billionaire, it can certainly work for you!
4. You Have Financial Goals
Do you have goals for your money? If so, that’s another green flag waving in your favor.
For a long time, I thought financial goals were only for the super-wealthy. But I was wrong. Setting goals—whether it’s saving for a vacation, a down payment on a house, or retirement—gives you direction. It’s a sign that you’re thinking ahead, and that’s something many people struggle to do.
When I set my first financial goal, it was small: saving for a weekend getaway. But when I hit that target, the sense of accomplishment was huge. It made me realize that, regardless of the amount, having a goal meant I was being proactive about my financial future.
Quote: “A goal without a plan is just a wish, but a financial goal with a plan? That’s a roadmap to freedom.”
If you’re actively working toward your financial goals, no matter how small, you’re already ahead of the curve. Most people don’t even have a plan, let alone a goal. Keep setting and achieving those milestones—you’re on your way to long-term success.
5. You’re Not Stressed About Money All the Time
One day, as I was having coffee with a friend, we got to talking about our finances. He was constantly worried—always stressing about money, checking his bank account several times a day, and losing sleep over every little expense. As I listened, it struck me: I wasn’t feeling that same anxiety anymore.
That’s when it hit me—not being stressed about money all the time is a sign that you’re doing something right. If you can go through your day without that pit-in-your-stomach feeling whenever you think about your bank account, you’re already winning.
Sure, I still had financial concerns, and who doesn’t? But they weren’t consuming me like they used to. I knew I had things under control, even if everything wasn’t perfect. That feeling of calm, even in the face of financial challenges, is a huge green flag that you’re managing your money well.
Example: It’s like sailing a boat in a storm—you may not be able to control the weather, but if you trust your skills and the strength of your boat, you can navigate the waves without fear.
Conclusion: You’re Doing Better Than You Think
We often get so caught up in the things we haven’t achieved financially that we overlook the things we’ve already done. Whether you have a small emergency fund, are paying down debt, or are simply living within your means, you’re on the right track. These may seem like small wins, but they add up over time and contribute to long-term financial health.
The next time you feel like you’re not doing enough, take a step back and look for these green flags in your own financial life. You might be doing a lot better than you think!
Quote: “It’s not about how much money you make, but how well you manage what you have.”
Remember, success isn’t just about reaching the finish line. It’s about recognizing the milestones along the way. If you see these signs in your financial journey, give yourself credit—you’re well on your way to financial freedom.
