If you find yourself in a position where your bills are paid, you’re not stressed out by massive debt and you even have some money put aside — you’re in an ideal place to start the new year right financially.
According to experts, being in a positive financial position is just as much about your mental health and your balance sheet.
“From a balance sheet perspective, I believe you should have 3 months of emergency funds in some cash or cash-like equivalent account at minimum,” said Kristin Thompson Poelker, certified financial planner (CFP) and financial advisor at Renaissance Financial.
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“Everyone needs a tailored personal financial plan,” she added. “I have a hard time helping clients create additional goals when this is not in place.”
Something crucial to look at when determining a client’s financial fitness, according to Thompson, is connecting with them on their mental health.
“What about finances causes you stress? The balance sheet number above tends to be a good start for most anxiety,” she said.
“Have a credit card to pay off? Well if we don’t have an emergency fund, you could go into debt again. Want to move or buy a new house? Well if you don’t have funds stashed away for that transition, it will be stressful to shove out large amounts of cash — and on and on,” she added. “To know if you’re in good financial shape, know if you have any stress.”
Below are some signs you’re financially set up to start the new year right.
In contrast, are you not where you would like to be leading into the new year? Here are five money moves you should make in 2025.
You a Have 1-Month Emergency Fund
Adem Selita, CEO and cofounder of The Debt Relief Company said having an emergency fund of a month’s salary set aside is a top sign.
“Even a small amount can be beneficial but if you have a month’s salary or more set aside for an emergency you are in a pretty good financial standing,” he said.
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Regularly Paying Your Bills on Time
Next up — you’re consistently paying your bills on time.
“This shows that you can responsibly manage your finances and are continually building good credit history,” Selita said.
You Save Money Each and Every Month
According to Selita, saving money on a monthly basis — no matter how small — is a huge plus.
“And something you should use to your advantage whenever possible,” he said.
You Have a Monthly Budget
“Having and using a budget is a huge plus,” Selita added. “Only 32% of US households prepare a monthly budget. Budgeting helps you track your income and expenses and shows you have discipline.”
You’re Investing in Your Future
Selita said this could include contributing towards a retirement account, investing in stocks or taking courses to improve your personal finance knowledge.
The point is to start thinking long-term rather than in the moment.
You’re Not Living Paycheck to Paycheck
“If you have some breathing room between paychecks, you’re in a better position to handle unexpected expenses or save for the future,” Selita said. “This is an amazing thing and something you should always be grateful about.”
Even if you’re not where you want to be, he said making progress is important.
“Don’t be too hard on yourself and celebrate your successes, no matter how small they might seem,” Selita added.
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This article originally appeared on GOBankingRates.com: 6 Signs You’re Financially Set Up To Start the New Year Right
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