In an economy burdened by escalating living expenses and inflationary pressures, the question of whether you’re managing your money properly becomes more pertinent than ever. Akshat Shrivastava, a respected finfluencer and founder of Wisdom Hatch, offers insightful guidance on how to ascertain your financial stability. Here’s how you can gauge your financial health:

Save 20% or More: The Gold Standard

As financial expert Akshat Shrivastava highlights, saving at least 20% of your income is an exceptional indication of financial prudence. While less than half of affluent individuals maintain this discipline, doing so can carve out a robust financial foundation and foster investment opportunities. Such a habit not only prepares you for unforeseen emergencies but also fortifies your asset portfolio.

Homeownership: More Than Just Brick and Mortar

Ensuring homeownership can be a critical stabilizer in one’s financial portfolio, especially in today’s turbulent market. Owning a home acts as a hedge against rising rents and is an appreciating asset over time, as asserted by Shrivastava. In a world where medical, food, and accommodation costs surge, being a homeowner is not just preferential; it’s a strategic advantage.

Manageable Debt: Balancing Act for Prosperity

Embracing debt responsibly is indispensable for financial wellness. Shrivastava advises keeping debt payments below a third of your total income to prevent chronic financial strain. A well-managed debt level is vital for maintaining your lifestyle while still contributing to savings and investment pools.

Build a Two-Year Financial Runway

Possessing savings that can sustain you for at least two years without regular income is a hallmark of financial resilience. This buffer symbolizes financial autonomy, allowing you to embrace career shifts, entrepreneurial ventures, and personal challenges without relinquishing peace of mind.

Investment Prowess: The Key to Future Wealth

Investment acumen is pivotal for safeguarding and amplifying wealth. As noted by Shrivastava, integrating basic investment strategies into your financial routines transforms idle savings into engines of growth. Mastering such skills equips you to seize lucrative opportunities which might otherwise slip through the cracks.

Understanding and applying these five indicators laid out by Akshat Shrivastava can serve as a compass for anyone looking to secure their financial future. Each step consolidates a base upon which sustainable prosperity and financial independence can be built, leading to a life of confidence and tranquility.

According to The Economic Times, these strategies are quintessential for a well-rounded and healthy financial life.