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8 Financial Signs You’re Doing Better Than The Average American



Understanding where you stand financially compared to the average American can be an insightful exercise in personal finance management. This series of 20 financial signs offers a comprehensive look at various indicators of financial health and stability. From emergency funds to investment portfolios, these signs will help you gauge whether you’re ahead of the financial curve. As you read through, consider which areas you excel in and where there might be room for improvement.

Emergency Fund Stability

Having an emergency fund that covers at least three to six months of living expenses indicates financial security beyond the average American. This fund acts as a safety net for unexpected events like medical emergencies or job loss. Maintaining such a fund shows foresight and disciplined saving habits, setting you apart from many who live paycheck to paycheck.

No Credit Card Debt

Carrying no credit card debt signifies a strong handle on personal finances. Credit card debt often comes with high interest rates, trapping many in a cycle of debt. If you’re free from this burden, you’re likely managing your spending and budget more effectively than most.

Regular Retirement Contributions

Consistently contributing to a retirement fund, whether it’s a 401(k) or an IRA, is a sign of financial prudence. The average American often struggles to save for retirement. Your regular contributions suggest a focus on long-term financial stability.

Owning Investment Properties

Owning additional properties beyond your primary residence can be a significant indicator of financial health. Investment properties can generate passive income and contribute to wealth accumulation. This level of investment is not commonplace among the average population.

Diverse Investment Portfolio

Having a diverse investment portfolio shows advanced financial management. This diversification reduces risk and can lead to more consistent returns over time. The average American may not have the resources or knowledge to achieve this level of financial diversification.

A Solid Credit Score

A solid credit score is a testament to financial responsibility. It reflects a history of timely payments and creditworthiness. Many Americans struggle with low credit scores, so a high score sets you apart.

Owning Your Home Outright

If you’ve paid off your mortgage, you’re in a financially enviable position. Owning your home outright provides security and reduces monthly expenses significantly. This achievement is a milestone that many Americans may never reach.

Having Multiple Income Streams

Generating income from multiple sources, such as a primary job, side business, or investments, indicates financial acumen. This strategy not only increases your income but also provides security in case one income stream fails. Most Americans rely on a single income source.

College Savings for Children

Having a college fund for your children shows that you’re financially prepared for future expenses. Education costs are a significant burden for many families. Your ability to save for this indicates a level of financial comfort above the average.

No Student Loan Debt

Being free from student loan debt is increasingly rare and signifies a significant financial advantage. This type of debt is a major obstacle for many Americans, hindering their ability to save and invest. Without this burden, you’re ahead of the curve.

Able to Afford Health Insurance

Having comprehensive health insurance without financial strain is a sign of stability. Many Americans struggle with healthcare costs. If you can comfortably afford health insurance, you’re better off than many.


In reviewing these 20 financial signs, it’s clear that financial well-being extends beyond just income levels. It encompasses a range of practices, from effective debt management to strategic investments and savings. Whether you find yourself well-represented in these signs or see areas needing attention, remember that financial mastery is a journey. Regularly assessing your financial health and adapting your strategies can lead to greater stability and prosperity in the long run.