are you financially stable?

well I have to say that financially stable means different things to different people. Being in banking, this topic is right up my alley. The two most important factors on the road to financial stability are definitely being able to pay your bills on time and having some money in savings. This is the foundation of other aspects of financial security. However, this is often the hardest part to achieve for most people. Being able to pay your bills on time is essential. With a little budgeting, it isn't hard to do as long as you live within your means, and don't go crazy with credit cards. Once you get to that point, then you can start working on a savings account. Most people recommend at least 2 months worth of living expenses kept in a savings account that makes them readily available. Three months worth is even better...Once you reach this goal...the rest will fall into place... Once you get your monthly bills under control, and you get your savings/emergency fund in place, you can start taking the extra money and using it to pay off your debt. It is still a good idea to continue adding a little to your emergency fund each month or each pay period, but you can use most of your extra funds to pay extra on credit cards, car loans, or even your mortgage if you have one. It is also a good idea to start an IRA and try to put a few dollars a month into it. Most younger people would probably be better off with a ROTH IRA. I wont go into details about the different kinds here, but contact your bank for the specifics. Now it is also time to start thinking about doing some investing or something. This is where a separate savings account comes in useful. By adding money to it each month, you will soon have enough in your stash to get a CD or maybe even buy some stocks. There are countless options in the stock/bond markets, so research and possible a financial brokers advice is preferable. This is a big step, so don't go into it lightly. Do your homework, and remember that family members, though they may mean well, are not always a good source of input or advice... So in answering your questions, I think the indicators are, for the most part, right on.

Hi lovelyprune, Not only what you have mentioned, but there are many more indicators to understand that we are not financially stable. Yes, I am not financially stable till today and the main reason being that I am shouldering responsibility of taking care of my sister' family. I support them financially every month because my sister's husbund has suddenly fell blind and could not take up any job. But I am now recovering and gaining financial strength because of support to me from my two children who are now employed with good salary and also my sister's son who also has got his job and started taking care of his family. I think by this year end I will be financially stable. Good Luck.