Are you managing your money well? 5 indicators of strong financial health, according to Akshat Shrivastava

In today’s world, managing personal finances has become increasingly complex. Rising living costs, inflation, and easy access to credit mean many people are unsure whether they are truly on stable financial ground. Understanding key markers of financial health can help you evaluate your situation, plan for the future, and gain confidence in your money management.

Akshat Shrivastava, founder of Wisdom Hatch and a leading finfluencer, highlights five essential indicators that signal financial stability.

1. Saving at Least 20% of Your Income
Consistently saving 20% or more of your household income is a strong measure of financial discipline. Shrivastava points out that less than half of high net-worth individuals even manage this, which shows how rare this habit is.

Regular savings not only create a safety net for emergencies but also lay the groundwork for investments and long-term wealth accumulation. Achieving this level of saving reflects careful budgeting and a forward-thinking approach to finances.

2. Owning a Home
Home ownership remains a key indicator of financial stability, particularly as younger generations face rising housing costs. Shrivastava emphasizes that owning property provides security, reduces reliance on rental payments, and acts as a long-term asset that can grow in value.

With food, medical, and housing expenses continuing to climb, having a home is more than just a lifestyle choice—it is a strategic financial advantage that few manage to achieve early in life.

3. Keeping Debt Manageable
Debt is not inherently bad, but managing it responsibly is crucial. Shrivastava advises that EMIs should ideally consume less than a third of your household income. Many people unknowingly overstretch themselves with loans, leading to financial stress and limited flexibility.

Keeping debt under control ensures you can cover essentials, save, and invest without being trapped by high repayment obligations.

In 2025, financial stress is everywhere. But here’s how to know if you’re actually doing well with money:

(1) You’re saving 20% or more of your household income.

Less than half of high net-worth individuals even manage this. If you’re hitting this mark, you’re ahead of a big…

— Akshat Shrivastava (@Akshat_World) August 16, 2025

4. Having a Two-Year Financial Runway
Being able to live for two years without a regular income is a strong sign of financial security. Shrivastava explains that this runway provides freedom to explore career changes, start a business, or handle emergencies without panic.

Most people burn through their savings quickly, but having a substantial nest egg allows for calculated decisions and long-term planning, making it a key differentiator in achieving financial independence.

5. Understanding and Practicing Investment
Finally, knowing how to invest is crucial for growing and protecting wealth. Shrivastava notes that many people see others accumulate wealth but later lose it due to poor investment choices.

By starting small, learning the basics, and gradually gaining experience, individuals can make smarter decisions when opportunities arise. Investment knowledge transforms savings into a tool for long-term financial growth rather than just money sitting idle.

Developing even a basic curiosity about personal finance is a step in the right direction. Following these five indicators can help individuals assess their financial health, make informed decisions, and secure a stronger, more stable future.