In today’s fast-changing economy, financial success isn’t just about how much you earn — it’s about how well you manage your money. Many professionals and entrepreneurs may enjoy high incomes, yet true financial wellness often feels out of reach or broader than they realize. So, what truly sets apart those who thrive financially from those who merely get by? Here are five key indicators that show you’re on the right track toward lasting financial prosperity.

1. Zero credit card debt

Credit card debt is one of the costliest forms of consumer borrowing, with annual interest rates often ranging between 15% and 28%. In the U.S., the average household carries over US$6,000 in credit card debt. In Malaysia, the average outstanding balance stands at about RM12,000 per cardholder (CTOS), while in Singapore, individuals aged 45–49 hold the highest average at S$6,964.

Being able to control or eliminate credit card debt demonstrates strong financial discipline. It reflects that you’re living within your means, managing your cash flow effectively, and avoiding dependence on borrowed money.

Becoming debt-free, or at least minimizing high-interest liabilities, is more than just a financial goal; it’s a mindset. It brings a sense of freedom, stability, and peace of mind that forms the foundation for long-term wealth building.

2. Living below your means

A common misconception is that higher earnings automatically translate into financial stability. However, a poll by St. James’s Place Asia (SJP Asia) revealed that nearly 50% of high-income earners in Singapore still struggle financially, largely due to poor spending habits.

Living below your means simply means spending less than you earn while consistently setting aside money for savings. This principle is crucial to long-term financial success because it helps you avoid lifestyle inflation—the tendency to increase spending as income rises. After all, a high salary loses its meaning if expenses climb just as quickly. Living below your means also provides financial flexibility, giving you the freedom to make better career and investment choices.

A practical way to start is by following the 50/30/20 Budget Rule, which allocates 50% of income to necessities, 30% to wants, and 20% to savings and investments (Investopedia). Those who consistently save a portion of their income—regardless of how much they earn—are far more likely to achieve financial independence over time.

3. 6-12 months of emergency funds

According to Bank Negara Malaysia, nearly 75% of Malaysians have less than RM1,000 in savings, leaving them highly vulnerable to financial shocks. While the situation in Singapore is relatively better, an OCBC survey found that two in three working Singaporeans lack savings beyond six months of expenses.

A well-funded emergency account, ideally covering 6–12 months of essential living expenses, is more than just a financial safety net — it’s peace of mind. It enables you to weather unexpected events such as medical emergencies, retrenchment, or sudden income loss without resorting to high-interest debt.

With sufficient emergency savings, you can maintain financial stability even during economic downturns. More importantly, it frees you from short-term financial stress, allowing you to make sound, long-term decisions that support your overall wealth-building journey.

4. Regularly set aside money for investments

Saving alone isn’t enough to build lasting wealth — inflation continually erodes purchasing power. The real key to financial growth lies in investing in assets that appreciate over time. According to a study by Ramsey Solutions, 75% of millionaires credited their success to consistent, long-term investing, underscoring the power of disciplined investing over time.

Personally, the best investments are those that let you sleep well at night. Rather than chasing trends or quick gains, wise investors focus on assets they understand, stay patient through market cycles, and let compounding do the heavy lifting. Investing is much like planting a tree; slow, steady, and deeply rewarding in the long run. If you consistently set aside money for investments and resist worrying about short-term market swings, you’re already ahead of most people on the path to financial freedom.

5. Net worth increases every year

Your net worth (total assets minus total liabilities) provides a clear picture of your true financial standing. Looking only at assets can be misleading, as they are often offset by debts or other obligations. When your net worth consistently increases, it’s a strong sign that you’re effectively managing and growing your wealth.

According to UBS, global wealth rose 4.2% in U.S. dollar terms in 2023, while in Singapore, the average wealth per adult grew by 3.8%. Achieving steady net worth growth typically requires regularly investing in appreciating assets, strategically reducing debt, and making financial decisions that support long-term stability.

Even small, consistent increases in your net worth are meaningful. They signal that your financial habits are working — steadily moving you toward greater wealth, independence, and security.

The fifth perspective

Financial success isn’t determined by income alone; it’s built on a foundation of strategic money management, disciplined saving, and consistent investing. If you’re already meeting these five financial benchmarks, you’re well on your way to long-term prosperity.

If you find yourself falling short in certain areas, now is the best time to make changes. Whether it’s creating a budget, cutting unnecessary expenses, or starting your investment journey, even small, consistent steps today can create a lasting impact on your future financial security.

Ultimately, financial well-being isn’t about how much you earn, but how well you manage what you have. The goal isn’t just to make money — it’s to sustain and grow your wealth over time, achieving true financial freedom and peace of mind.