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4 subtle signs reveal if you're "doing well," according to finance experts

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  Published in Business and Finance on Sunday, September 7th 2025 at 7:20 GMT by Newsweek
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How to Know You’re on the Right Financial Track: A Practical Summary of Four Key Indicators

When we talk about financial health, the first thing that usually pops up is a bank statement, an investment dashboard, or a credit score. But what if you could gauge your overall wellbeing with just a few simple checkpoints? Newsweek’s recent feature “Four Signs You’re Doing Well Financially” distills the complex world of personal finance into four clear, actionable indicators that can help you tell whether you’re truly thriving.

1. You’re steadily shrinking your debt

Debt is the most obvious threat to long‑term wealth, and its presence—or absence—speaks volumes about your financial footing. According to the article, the first sign of sound money management is that you’re consistently paying down debts, especially high‑interest balances like credit cards and payday loans.

Why it matters: Interest on credit cards can erode any savings you’ve built, so paying those balances off frees up money for investing and emergency funds. The article points out that even small, regular payments can snowball into a significant reduction over time. Moreover, the psychology of debt—knowing that the burden is lessening—can improve overall financial confidence.

What to do: Adopt a debt‑repayment strategy such as the “snowball” or “avalanche” method. The article links to a helpful calculator that lets you simulate different payment plans and see how quickly you could clear various balances.

2. Your emergency cushion covers 3–6 months of expenses

An emergency fund is the safety net that lets you ride out unexpected expenses—think a car repair, medical bill, or sudden job loss—without derailing your financial plan. The second sign highlighted by Newsweek is that you’ve built a buffer that would cover at least three to six months of living costs.

Why it matters: The article explains that having this cushion means you won’t need to dip into retirement accounts or high‑interest debt when the unexpected happens. It also provides peace of mind, which is often overlooked in traditional budgeting discussions.

How to get there: Begin by setting a realistic savings goal based on your monthly expenses. If you’re unsure how much that is, the linked resource offers a simple worksheet to calculate your exact monthly outlays, including discretionary spending. Then, automate a portion of each paycheck into a high‑yield savings account or a money‑market fund until you reach the target.

3. Your credit score is healthy (usually 700+)

Your credit score is more than just a number—it’s a key indicator that lenders and insurers use to gauge risk. The Newsweek piece emphasizes that a strong credit score (typically 700 or higher) is the third sign of good financial health.

Why it matters: A higher score reduces the interest rates you pay on mortgages, auto loans, and personal lines of credit. It also can affect insurance premiums and even job offers in certain industries. The article links to a reputable credit‑reporting agency’s quick‑check tool, letting readers see their score without any cost.

What to do: Keep credit utilization low (ideally under 30% of your available credit). Pay all bills on time and consider a diversified mix of credit types. The article also recommends disputing any errors on your report—an easy fix that can boost your score significantly.

4. Your income is growing and stable

The final sign is perhaps the most nuanced: a steady, upward trajectory in income. The article cautions against treating income as a static figure; instead, it’s the trend over time that matters. When your paycheck consistently rises—or at least stays flat while your living costs remain in check—it signals career momentum and financial resilience.

Why it matters: Steady growth means you have more leeway to invest, save, and experiment with side projects or business ventures. It also indicates that you’re keeping up with market demands, whether through promotions, salary negotiations, or skill development.

How to nurture it: Stay informed about industry trends, and invest in continuing education. The linked career‑advice blog in the Newsweek article offers a step‑by‑step guide to crafting a personal brand that can command higher compensation. Additionally, set aside a portion of each raise for a dedicated “growth” fund—be it stocks, real estate, or a startup.

Putting the Signs into Practice

Recognizing these signs is the first step; putting them into action is where most people stumble. The article proposes a simple audit: list each sign, rate your current status on a scale of 1–10, and set a realistic timeline to improve.

For instance, you might find that your debt is at a 5/10 because a credit‑card balance still lingers. Your emergency fund might be at 3/10 because you’ve only saved one month’s worth of expenses. By assigning numbers, you create measurable goals.

Additionally, the Newsweek piece highlights the importance of budgeting tools. A few free apps—like YNAB, Mint, or EveryDollar—can help you track spending and visualise progress toward each sign. The article also recommends reading “The Total Money Makeover” by Dave Ramsey or “Your Money or Your Life” by Vicki Robin for deeper, structured approaches to financial transformation.

A Quick Checklist

Final Thoughts

Financial health isn’t a one‑size‑fits‑all metric; it’s a dynamic set of indicators that evolve with your life stage and goals. Newsweek’s concise list of four signs offers a practical, low‑barrier way to assess where you stand. By focusing on debt, savings, credit, and income, you can create a robust foundation that supports both immediate needs and long‑term ambitions.

Whether you’re a young professional just starting out or a seasoned earner looking to optimize, start today by measuring your current status against these signs. Small, consistent steps—like automating debt payments, boosting your emergency fund, keeping your credit healthy, and investing in yourself—can transform the abstract concept of “doing well financially” into a tangible, measurable reality.