What determines your Financial situation?

[raaman]

Your well-being or financial situation is unique, important, and particular to you. You often believe that well-being or financial situation equates to how much money you make in your life, your credit score, or your net worth. In reality, your financial well-being is decided by factors that more largely reveal how you manage your hard earned money in life.

Among the factors that decide your financial well-being are, how much you are able to keep up with your financial responsibilities, how confident you are about the future and, in the end, whether or not you have enough liberty to make those financial decisions that allow you to enjoy life. Knowing the condition of your finances need not have to make you anxious.

 

[Mika]

Some of the things that determines your financial situation are your income level, your savings such as emergency funds, retirement funds, your assets such as house and a car, your investment portfolios such as stocks, crypto, etc. If you are earning enough to pay your bills, save for future as well as invest in the market, you are in a better financial situation. If you are struggling with your finances and do not have enough savings or investment portfolios, you are probably having bad financial health

 

[Leah Kelvin]

Internal and external factors contribute to the financial situation, affecting factors such as income sources, employment status, education level, spending behavior, debt levels and savings/investment. These elements affect the stability of income, job security, earnings potential, management of debts, accumulation of wealth and achievement of financial goals over time.

Their objectives, values for life stage economic conditions and risk aptitude influence people’s financial decisions. In order to reach the peak of financial growth and healthiness individuals will have to learn how to adapt their investments with regard to changes in the economy set smart goal that are measurable realistic achievable time bound (SMART) and make sure that they are invested in accordance with their risk appetites.

 

[btaliat]

Economic status of the country can go a long way to determine the financial status of the individuals. The situation of the country, whether there is inflation, deflation and even recession, it will go a long way to affect and determine the situation of the individual financial status.

There is also factor of earning. The more we earn, the more status that we have access to. That's why it is always better to have a good pay for us to have more saving and have strong income.

Other factors may include debt ratio and even taste of the individuals.