How often have you stepped on the weighing scale, counted calories via some app, or used activity trackers to keep a tab on the number of steps you have taken per day? But just as you monitor your overall physical condition to make sure your health is on the brighter side; you should also do the same for your financial well-being.

Below are five vital points that can help you monitor your financial health. If your answers to these points are not in the affirmative then it’s time to take a step back, re-analyze your financial stance and take action to turn the tide.

You can increase your income or cut your spending

This is a big sign you are better off than you think. Ask yourself a few questions, can you increase your income (perhaps by getting a side gig, qualifying for a raise at work, or even changing jobs/careers together)? If not, can you find some places to cut your spending? Maybe you order a lot of takeouts (no judgement! Although note that you can do it less often, and also do it smarter, and save money). Do you have an expensive hobby? Depending on your answers to all these questions, hopefully on the positive side, then you are either financially better than you think or at least en route to that financially stable spot.

You have little or no debt

Borrowing can put what you want within your financial reach. But repayments can stretch your monthly budget beyond a comfortable limit especially when you live beyond your means and you do not have a realistic repayment plan. Reducing or eliminating that debt can free up money which you can then use for emergencies, investments or home improvements. On the other hand, living with little or no debt is a sign that your financial life is in a good place.

You have the plan to pay off your debt

The next way to tell that you are doing better with money than you realize is if you have a plan to get out of debt. We professionally advise that you avoid debts with too much interest, and your repayment plan should be spread over a convenient period to avoid unforeseen bankruptcy. But ultimately, the best way to pay off your debt is the way that will keep you motivated to keep working hard, saving money, and making those payments, this way, your financial stability will not be in question.

You have an adequate emergency fund

When life throws nasty financial surprises your ways such as automobile repair or job loss, a sufficient emergency fund (around six months’ worth of expenses) or insurance can help you tide over the crisis. Otherwise, you may end up borrowing to cover the tab. This can throw you into a cycle of debt and financial insecurity, making it difficult for you to save. So, do you have an adequate emergency fund? Then you can keep on smiling, your finance is stable.

Saving for your future expenses and retirement.

Once the bills are paid, the emergency account funded, and the debt paid down, it’s time to start saving for future expenses like car repairs, travel, and retirement. This is when you start to see the real gains and maybe even feel like you might just know a thing or two about this money stuff after all, oh yes!

And as we always love to say, let your money work for you, it’s called budgeting. If you are successfully implementing and sticking to a budget, then your financial life is in good shape than you think.