4 Signs You’re Financially Comfortable (and Ready To Level Up)
Written by
Peter Burns
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Molly Sullivan
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Being financially comfortable is a goal that many people strive for, but it can mean different things depending on each person’s financial situation. For some, being financially comfortable can mean ordering DoorDash a few times a week without feeling guilty. For others, it might mean living off of passive income and not needing to work. Whatever it means to you, if you feel financially comfortable, you can take the next step toward wealth.
Nedra Tawwab, an American author and mental health therapist, posted on Threads with a question: “What’s a sign that someone is comfortable financially?” Here are some of the responses and how to know when you’re ready to level up.
Having Your Bills on Autopay
One sign that you’re financially comfortable is having your paycheck automated. User kaybee_dtw commented that if you have your bills on autopay, you’re not struggling to make payments.
This is excellent advice that many personal finance experts recommend. New York Times bestselling author and finance influencer Ramit Sethi is adamant about using autopay for your paycheck routine. Sethi suggests coordinating all of your payments, so they are due the day after you receive a paycheck. Then automate payments and stop thinking about it. The rest will be what you can spend for the rest of the month. You don’t have to be rich to have your payments automated. You’ll just be more relaxed.
Zero Credit Card Debt
Having debt can be financially crippling to many, but there is good debt and bad debt. If you’re regularly paying down your mortgage and building home equity, you’re increasing your wealth, and your home could potentially appreciate. Bad debt comes in the form of buying something that depreciates in value or has a high interest rate. A very common example of bad debt is credit card debt.
On the Thread, user mauiwonderland said having no credit card debt was a sign of being financially comfortable. Just being debt-free might not sound like a great feat, but for many, it is a challenging goal to achieve. According to the major credit bureau Experian, in 2024, the average American owed $6,730 in credit card debt. With average interest rates of over 20%, having a credit card balance can put a lot of stress on your financial health. On the other hand, being debt-free can be a huge comfort.
Making Plans, Not Just Payments
A user named writing_itsmybusiness chimed in, saying that a financially comfortable person is someone with long-term thinking. They noted that people who live paycheck-to-paycheck and react to every financial bump aren’t living comfortably. Instead, making a plan where you try to accomplish short- and long-term goals can help you find financial peace.
Finance experts like Dave Ramsey agree. He recommends taking a long-term approach that involves paying off all debt, creating a savings buffer, budgeting and investing.
Having Walk Away Money
If you’re in a tough situation financially, you might need to do things that you don’t want to. Being able to walk away is what user coachkellycampana said makes you financially comfortable. They referenced being stuck in a bad job or relationship and not having the funds to get out without taking a huge risk.
One way to make sure you have “walk away money” is to build up an emergency fund. Emergency funds are cash reserves that you save up in case of a crisis. For example, if your car suddenly breaks down, you lose your job or you need to go to the hospital, you may need to go into debt if you don’t have money saved up. Finance experts like Rachel Cruze suggest building up at least three to six months of your income to be safe, but the more you have, the easier you can walk away.
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