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

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By Jonathan Trent

It’s only natural to compare your lifestyle to those of others, especially regarding finances. If you’ve been wondering whether you’re on the backfoot when it comes to healthy money habits, these are the 18 signs that you’re actually better off financially than the average American.

Having an Emergency Fund

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Most Americans will be able to comfortably pay their bills every single month, but this might not leave them with much to spare. Therefore, having an emergency fund is one of the biggest signs of financial stability; savings equal to at least three months’ worth of bills is the goal!

You Have Little to No Debt

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Business Insider reports that the average debt in America is $104,215, which is crazy! Zero credit card debt might seem like no big deal to you, but compared to most Americans, that’s a huge accomplishment. If you don’t have any repayments outstanding, except perhaps your mortgage, you’re doing well.

High Credit Score

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Have you checked your credit score recently? Having a high credit score is an important sign that you’ve been on track financially. It makes it far more likely you will be accepted for credit if you ever need to take it out, which will roughly equate to a score of above 750.

You Have Retirement Savings

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Worrying about money isn’t just about the day-to-day expenses; for most Americans, it’s worrying about retirement, too. If you can comfortably contribute to your monthly retirement savings and match your employer’s 401(k), you’re on the right track.

Having More Than One Income Stream

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If you don’t rely solely on one job for your income, this is likely going to result in less debt and more savings. Earning income from multiple sources, such as freelance work or rental properties, can help you build a steady savings pot. Sadly, most Americans don’t have such a privilege.

You Own Your Home

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What could be seen as a natural progression for many American families can be a significant struggle for certain people hoping for property ownership. So, if you own your home or even another property and your mortgage payments are easily affordable, you’re doing better than most.

Leading a Comfortable Lifestyle

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Many people take for granted the freedom to afford the hobbies they enjoy and the vacations they want to take. Unfortunately, for the average American, struggling to pay for a regular vacation is the norm. Simply being able to buy something you want without budgeting is a huge privilege, so be grateful!

Health Insurance Coverage

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CBS News claims that in recent years, almost 40% of Americans have skipped medical necessities because of high costs. If you have a comprehensive health insurance plan and access to the healthcare you need without financial barriers, it’s a clear sign you’re in a better position than almost half of the U.S.

Education and Career Advancement

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Specialized training and higher education access are usually a sign that you have the financial means to support the decision. If you’ve also had consistent career growth where you’ve been able to earn an above-average income, this is also an opportunity that many people in the U.S. don’t get.

Generational Wealth

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If you’ve had a generous inheritance or assets passed down to the family, such as property, this can be financial aid that many people don’t have. Generational wealth may also come from having a highly successful family, so you’ve always been able to provide financial support to one another.

Having a Diverse Investment Portfolio

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Your investment portfolio might include real estate, stocks, and bonds, providing financial possibilities from many different sources–but only if you’re rich! If that’s the case, you regularly review your investment strategy to give yourself the best reward, a sense of freedom that not all Americans are familiar with.

You Have Minimal Financial Stress

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According to CNBC, 90% of Americans stress about money. If you rarely worry about any financial obligations or how you’re going to pay bills, you’re most definitely financially better off than the average American. Contributing to savings and handling unexpected expenses without worry is a real dream!

Charitable Giving

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If you’re doing well financially, you probably have regular income to spare for charitable giving, and you always prioritize meaningful contributions. This could also be a subconscious awareness of your financial freedom, as most people who believe they have a lot of money to spare feel the need to do something worthwhile with it.

You Have Financial Independence

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Being financially comfortable means having enough savings and investments to comfortably cut down your working hours if you want to. Having the time and money to pursue passion projects or more expensive hobbies without worrying about the impact on your bank account is another sign, with retiring early even seeming like an achievable goal.

Adequate Insurance Coverage

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If you’re richer than the average American, all of your important purchases in life have been protected by adequate insurance coverage. Your home, its contents, your vehicle, and your life all have insurance policies taken out on them, meaning you’re prepared for unexpected events at all times.

You Have Healthy Financial Habits

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Your healthy habits might include regular budgeting, adequate expense tracking, and prioritizing savings, but only if you’re wealthy! Fortune reveals that 57% of Americans cannot afford a $1,000 emergency expense, which shows that your healthy habits have led to avoiding unnecessary debt, unlike many people in the U.S.

Your Household Income is High

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If your household is earning more than the average in your country, this means you’re already ahead when it comes to finances. You might think you have to earn this average alone, but that’s not the case; household wealth is relevant!

You Prioritize Long-Term Financial Goals

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Finally, financial goals enable people to save and budget, so if you prioritize long-term financial goals, not just short-term ones, you’re likely in a better position than those Americans. Most importantly, if you’re feeling confident in achieving those goals, it reflects that you’re taking care of your money, so give yourself a pat on the back!