‘Most can’t do it’: Financial advisor lists 5 signs you’re financially fit in a debt heavy economy

In an environment of rising inflation and increasing debt levels, many households are struggling to assess whether they are on firm financial ground. Akshat Shrivastava, financial expert and Founder of Wisdom Hatch, has outlined five indicators that suggest a person is managing money well in 2025.

In a post on X (formally Twitter), Shrivastava underlined the five parametres, which shows a person is financially stable in 2025. 

Saving habits: Setting aside at least 20% of household income is one of the strongest signs of financial discipline. Shrivastava noted that fewer than half of high net-worth individuals achieve this benchmark, making it a meaningful target for most families.

Home ownership: With housing affordability worsening and ownership among younger people declining, having a house provides long-term stability and a hedge against rising living costs, particularly food, housing and healthcare inflation.

Debt levels: A healthy balance is achieved when equated monthly instalments (EMIs) remain below one-third of household income. Shrivastava cautioned that while borrowing is not inherently negative, over-leveraging can quickly become unsustainable.

Emergency savings: Maintaining savings sufficient to cover two years of living expenses without a job is another strong indicator of financial well-being. Such a buffer, he explained, allows individuals to manage emergencies, switch careers, or even start new ventures without immediate financial strain.

Investment knowledge: Beyond saving, the ability to invest wisely is increasingly critical. According to Shrivastava, poor investment decisions often erode wealth. He advised building experience gradually to ensure better choices when larger amounts of money are at stake.

Shrivastava added that even developing an interest in personal finance is an encouraging step. “If people are getting curious about finance, it means they’re already moving in the right direction,” he said.