At times, media can distort the way you see yourself, especially when it comes to how great you’re doing in the financial department. Even so, did you know that if you have more than $8,000 in your savings, you already save more than any other average American?

So don’t rush into judging yourself or how far you’ve come. Maybe you have a better financial situation than you’ve initially thought.

In this article, we enlisted some of the main signs that you’re actually doing better than you think.

Check them out, and don’t forget to tell us in the comments section down below how many of these applied to you!

You are almost completely debt-free

Financially well-off people are very aware that the first step to a healthy and financial life is having zero debt. If you actively work on this, focusing on paying off your personal loans, student loans, as well as your high-interest consumer debt like credit card debt, you are already ahead of most Americans.

The average American household carries over $6000 in credit card debt. As long as you can plug away your debt without continuously purchasing more, you are already on the right track.

You manage to pay your bills on time

Inflation transformed the whole concept of paying bills on time a fantasy for the average American, according to a recent study showing that 45% of the population paid a minimum one bill later than they should have in the last 12 months.

Moreover, 29% of them admitted to doing so in the last six months. If you always pay your bills on time, you are already ahead of half of Americans at the moment.

When you make a budget- you stick to it

Making a budget is probably the single best thing you could do for your own financial life. You will realize all the reasons why it’s so efficient to make one and stick to it.

Knowing where your money is coming from and going to every single month will let you understand better your own financial picture, and make all the needed adjustments to make sure there’s always enough.

You are very aware of the power of compound interest

Albert Einstein said that compound interest is the eighth wonder of the world, citing that the ones who understand it, earn it, and the ones who don’t, pay it.

If you have recently started investing even the smallest amount of money into the stock market and you have plenty of time on your side, you are on your way to building a healthy and steady financial life.

You don’t care about “Keeping up with the Joneses”

You don’t feel the need to make huge purchases only to fit in or show off to your neighbors. In fact, you would rather live below your means and think critically when it comes to all the purchases you make on a daily or weekly basis.

Living for yourself and living below your means is quite empowering and lets you achieve financial peace of mind. This, of course, considering that you have enough already to cover the bases.

You work on your financial literacy

Well, if you were looking for a sign, the fact that you read this already shows you’re doing better financially than you think.

People who are actively working on their financial literacy are increasingly learning new things about being financially well.

In 2025, there’s really nothing more important than investing in your financial literacy, whether it’s about reading articles, self-help books, YouTube videos, or any other medium of choice.

All of these will allow you to make the best and wisest financial decisions for yourself and your family as well, putting you ahead of most people no matter what your income level is.

You have an emergency fund

Financial experts suggest that all of us, no matter our employment status or financial situation, should have easy access to an emergency fund in a high-interest savings account.

Some experts suggest starting with $1000, or simply enough to cover an unexpected expense, while others say that you should save 3 to 6 months of your total cost of living.

According to another study, no less than 42% of Americans can’t cover an unexpected $1000 expense without tapping into their credit card. If you have this money set aside, you’re already ahead of the rest.

You have more than one stream of income

Financially responsible individuals know so well that relying on only one stream of income is a risky job.

They also know that taking on a side hustle or planning for a passive income stream in the future is a wonderful way to create a financial safety net.

This can also look like monetizing your passions, starting your own YouTube channel, and investing in the stock market.

You check your financial landscape on a regular basis

Another more recent survey demonstrated that 42% of Americans don’t check their bank account balances simply because they fear what they could see.

If you check your bank accounts and investment accounts on a daily basis, or at minimum multiple times per week, you will be better off financially than those who don’t.

This is simply because it helps to know exactly where your money is going, face reality head-on, and make better and smarter financial decisions overall.

You understand that money means freedom

It doesn’t matter so much how much you’re bringing home, as long as you understand that money is just a means to an end, you are ahead of the majority of Americans anyway. People who seek even more just to consume more will never truly feel satisfied.

But also that time is money

On the same note, if you understand that time is money you would do much better financially than you might think.

This can also look like calculating your per-hour rate and considering how many hours of work a specific purchase would “cost” you.

For instance, if you have calculated that you make $25 every hour, and you want to order a $50 Uber Eats delivery, the convenience of having fast food delivered to your door would “eat” two hours of your work time.

You get to treat yourself without feeling guilty

Being financially healthy doesn’t automatically mean going after every single little pressure, but more so knowing the pleasures that YOU think are worth to you.

If you manage to point to all the little treats that make such an impact in your life, and you don’t feel any guilt when you make these purchases, you are easily ahead of most Americans.

You have the right mindset

More often than not, the cost of living crisis makes achieving a proper, healthy financial life way more difficult at the moment. However, this doesn’t mean that it’s impossible.

If you have a positive mindset and can solely rely on yourself to figure things out, you already do so much better than folks who have fallen into a victim mentality.

Takeaway

In the end, what you need to do is sit down and adjust your expenses according to your salary. Why is this important? Well, if you don’t have the possibility to upgrade your finances, there’s no point in living a life full of stress and worry about tomorrow.

If you found this article useful, we also recommend checking: 7 Reasons to Move in a Smaller Place in 2025