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It probably depends on who is doing the labeling...

Bill had been earnestly studying Spanish for a couple of years when he overheard a group of neophyte Spanish students proudly showing off with their new skills by talking to each other in Spanish. Upon hearing their conversation, he stopped and reflected, "I sure am glad my Spanish isn't as horrible as that anymore."

The next day, Bill went down to a local carnicerĂ­a (butcher shop) and tried to strike up a conversation with the friendly old who ran the shop. They talked together in Spanish for a couple of minutes while Bill placed his order. Bill left the shop with a sense of pride that he had finally broken through to becoming a decent speaker of Spanish. Meanwhile, the kindly old man watched and chuckled to himself thinking, "I didn't understand a word that crazy gringo just said."

On the bus home that afternoon, the (butcher) sat beside a grammar teacher from high school. They had a brief conversation until it was time for the teacher to get off. As he was exiting the bus, the teacher began cataloging the mistakes in the old man's speech so that he could use these in class the next day as examples for his students.

Everybody has their own ideas about how well they understand a language, and depending on who you talk to, you will likely find that you at any one point in time speak the language: horribly, poorly, as a beginner, with difficulty, OK, well, fairly, decently, at an intermediate level, very well, exceptionally, at an advanced level, wonderfully, seamlessly, magnificently, fluently, etc.

Just remember that there is never going to be a time when you can't become better or learn more, so have fun with it, keep learning, and don't get too caught up on labels. (unless, of course, you are applying for a job--In this case always check the label: fluent)