%20(1)_edited.png)
Still trying to live your life during a cost-of-living crisis can make you question your money management, but you may be doing better than you think. Founder of Ladies Financial Club, Molly Benjamin shares the financial green flags you've probably already earned yourself.
From the rise in the cost of living to interest rates – over the past few years, when it comes to finances, it’s been tough and sometimes, pretty grim.
But the good news is, it’s not all as bad as it would seem. In fact, there is a silver lining often visible in many people’s financial positions, or what the founder of Ladies Finance Club, Molly Benjamin refers to as financial green flags.
“A financial green flag is like a gold star in the world of money – it’s a clear sign that someone is nailing their financial habits,” she tells Body+Soul.
“They’ve got a handle on saving, budgeting, and planning for the future, and it shows.”
While I never for a million years would have thought I had earned myself any financial green flags, when I first heard what they were I was shocked to learn that I had.
Not only did this have me pleasantly surprised and proud of myself, but it also had me thinking - if I had some financial green flags, there’s no doubt that many others would too (and, like me, have no idea that they do.)
So, in my mission to spread the good news and to celebrate these wins, let me introduce you to what Benjamin says are the five most important green financial flags (and why).
#1. You’ve Got $1,000 Saved
Stat: 45% of Australians don’t have $1,000 in savings.
Why it’s a green flag: Having even a small emergency fund shows that you’re prepared for unexpected expenses, like car repairs or medical bills. It’s a sign of financial readiness and discipline.
#2. You’ve Got No Credit Card Debt
Stat: 68% of Australians carry credit card debt.
Why it’s a green flag: Being debt-free from high-interest credit cards means you’re not losing money to interest payments and are likely living within your means.
#3. You’re Investing in the Share Market
Stat: 42% of Australian women are investing in the share market.
Why it’s a green flag: Investing shows you’re thinking about long-term wealth building and taking steps to grow your money rather than just saving it.
#4. You Have No Car Payment
Stat: The average new car payment in Australia is $760.92 per month.
Why it’s a green flag: Owning your car outright means you’re avoiding significant monthly expenses and possibly redirecting that money toward savings or investments.
#5. You Have a Will
Stat: 52% of Australians don’t have a will.
Why it’s a green flag: Having a will ensures your assets are managed according to your wishes and that your loved ones are taken care of in case of an emergency. It’s a sign of long-term planning and responsibility.
“These green flags aren’t just about having money; they’re about making smart choices, staying on top of responsibilities, and being proactive about building a stable financial future,” adds Benjamin.
“Green flags mean financial stability, long-term thinking, and, let’s be honest, a lot less stress!”
They can also lead to more positive thinking around money, by building confidence, and helping inspire you to set goals and in relationships as they show you are financially responsible and stable.
But if you’re like me and have some but not all five financial green flags, Benjamin says you are still doing well.
“Having one or two green flags is a great starting point! It means you’re doing something right, and there’s always room to grow.”
Being debt-free from high-interest credit cards means you’re not losing money to interest payments and are likely living within your means.
So how do we grow?
#1. Focus on one goal at a time
If you don’t have savings, start by building a $1,000 emergency fund. Break it into smaller steps, like saving $50 a week.
#2. Pay down debt
High-interest debts like credit cards and Buy Now Pay Later are holding you back. Prioritise paying them off as fast as possible. It’s impossible to build financial momentum if your hard-earned cash is being swallowed by interest. It's like walking up an escalator backwards.
#3. Educate yourself
Learn about investing, budgeting, or superannuation. Knowledge is power, and small changes can have a big impact. Check out a free Ladies Finance Club masterclass.
#4. Automate good habits
Set up automatic transfers to savings or investment accounts to make progress without even thinking about it.
“Remember, it’s not about how quickly you tick off all the green flags – it’s about building habits that set you up for long-term financial success,” Benjamin says.
“Being good with money is more about behavior and what you do with it than how much you earn.”