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Today’s post comes from fellow S&S reader, Taylor. Wondering how you’re doing financially? Well, if you’re on top of these 4 things, you’re pretty savvy!

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4 Ways To Tell if You Are Financially Savvy

The financial world likes to tell us how bad we’re all doing with our finances. But they pay too little attention to the things we’re doing right. You might be doing better financially than you realize.

Here are 4 signs that you’re financially savvy.

You Update Your Budget.

Are you updating your budget as your situation changes?

Financially savvy people know how much cash they are bringing in plus what is going out every month. They know how much it costs to run their household, pay their debts, make sure their own needs are met. They know how much money they will have as income in retirement, and they know how much they have in savings, too.

Updating the budget regularly can help you reflect easily on where you are spending and stay on track with your financial plan.

You Have Savings Goals.

Those who are successful with their cash are those who can see the value in having savings goals and sticking to them.

If you have a plan mapped out, you’ll find it far easier to stick to your plan and reach your goals.

You Don’t Rely On Credit.

Living paycheck to paycheck isn’t fun. But if it means you’re not relying on credit to get you through the month, it’s a win!

Credit cards may be an initial convenience, but in the long term, they’re a recipe for disaster. You’ll end up paying a fortune in interest, and you’ll never learn the discipline required to live within your means.

You’re Ready for the Unexpected.

An emergency fund is just good financial sense. If you are putting money into an emergency fund every month, you’re financially prepared for the unexpected. You’ll be able to recover more quickly when things go sideways on you.

Being financially savvy means having a good grasp on your past, present, and future financial behaviors. Budgeting, having saving goals, living below your means, and keeping an emergency fund all mean that you can be confident about your cash. Take the time to get savvy with your finances and you won’t go wrong.