13 Signs You’re Financially Better Off Than the Average American

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Achieving financial stability where you can meet your current financial obligations comfortably and still plan for the future is a goal everyone strives to attain.

However, while you may be able to pay your bills, save for vacations, and afford to dine out occasionally, you may feel left behind, especially if you compare yourself with your peers or others with higher salaries. You may be doing way better financially than the average American.

Read on as we explore some signs that you’re financially better off.

You Pay Your Bills on Time

You’re doing better than the average American if you can pay your bills on time. That shows you don’t want bills to pile and would rather not owe anything as it often interferes with your financial stability.

You Have an Emergency Fund Set Up

Another sign you’re doing well financially is having enough funds to cover at least six months of expenses. Research shows that only 47% of Americans have enough to cover emergency expenses above $2,000.

Investing Is Part of Your Financial Routine

You’re financially stable if regular investing is part of your financial routine. Investing allows you to grow your money quickly through compounding interest, which helps you build a high net worth. Understanding industry trends, diversifying your portfolio, and waiting for your investments to grow shows that you are financially well off.

You Have Multiple Income Streams

Being able to track your expenses and spend wisely is great, but figuring out other ways to make extra money without depending on your main job shows that you are financially savvy.

Having a side hustle or earning dividends from stocks allows you to earn additional income, which shows you’re doing well compared to the average American living paycheck to paycheck.

You Don’t Have High-Interest Debt.

A LendingTree study revealed that the average American has at least $6,000 in credit card debt. That figure is estimated to increase if we keep up with bad spending habits. You’re among the top Americans doing well financially if you have less than $6,000 in credit card debt or no high-interest debt.

You Can Afford Insurance

Do you have health insurance, car insurance, homeowners insurance, life insurance, or disability insurance? That signifies that you’re on the right track to financial stability. The right insurance can help minimize financial losses and cover significant risks.

You Have an Estate Plan

CNBC estimates that 67% of Americans don’t have an estate plan. Consider yourself ahead of most people if you already have a will or estate plan. It also shows that you’re prepared for the future, which reduces stress on your heirs and ensures your wishes are met.

You Can Afford Regular Vacations

Being able to travel for regular vacations is a clear sign that you’re doing better than most Americans. Some people have to borrow to finance vacations, which can be costly. Having enough to travel for leisure signifies a good financial standing.

You’ve Started Saving for Retirement

You have a healthy financial status if you’ve already started saving for retirement. A study by USA Facts revealed that almost 50% of all American households didn’t have retirement savings. However, if you’re contributing to an IRA or 401(K) regularly, you’re setting yourself up for success in your retirement years.

You Never Rely on Payday Loans To Cover Unexpected Costs

You’re doing better financially if you can comfortably cover unexpected expenses and additional purchases without relying on payday loans or cash advances. Most people depend on payday loans during financial crisis, which can leave them trapped in a cycle of debt.

You Have an Exceptional Credit Score

An exceptional credit score shows you can be trusted to repay debts on time and are responsible for your finances. When lenders deem you reliable, they can offer better interest rates on mortgages, loans, credit cards, etc.

You Have a Consistent Spending Plan and Are Up To Date With Your Financials

A survey by Bankrate revealed that only 82% of Americans had a household budget. Of those interviewed, 18% kept the information in mind, while the rest used a computer program or pen and paper.

You’re better off than the average American if you can still track your expenses and where your money is going. Having a consistent spending plan and reviewing your financial statements allows you to identify possible mistakes and adjust accordingly to meet your financial goals.

You Have Financial Goals You’re Working Towards

Are you saving for your dream house vacation or having enough funds for your children’s education? You are doing better off than the average American who doesn’t have any financial goals they’re working towards. Having financial goals shows that you’re planning for the future and are willing to take the necessary steps to achieve them.

Achieve Your Financial Goals

Going through the signs above can help you determine your current financial standing and decide whether you need to strategize or keep up with your money habits. Remember that it’s never too late to start investing, saving, setting up an emergency fund, or spending wisely.

You can always speak to a financial advisor to understand how to streamline your finances to help you achieve your long-term financial goals.