24 Signs You're Doing Well Financially...

On your journey to financial self improvement, it often feels like you’re never able to get ahead. Even if you’re making good progress, you always wish…

• You’re earning more.

• You’re saving/investing more.

• You’re spending more efficiently.

• You’re having a bigger positive impact on those around you.

That’s how money works.

In a cruel way, it’s hard to ever be happy with how you’re doing. But sometimes, it’s good to appreciate the progress you’ve made towards any financial goals you have.

And chances are, you’re way further ahead than you think, especially in comparison to the majority of the populace who are drowning in debt and living paycheque to paycheque, much to the delight of all the big rich corporations.

So, here are 24 signs you’re financially better off than you think, even if it doesn’t feel like it. Keep a score of how many apply to do. I’d say that if you get a score of 50% or more, you’re doing alright.

1. You Have Savings.

A recent study showed that over a quarter of Americans have savings of under $1,000. That’s right, over 25% of Americans have next to no savings.

If your savings pot is significantly greater than this, you’re way up in comparison to the majority of the population.

In truth, keeping too much cash can often compromise your wealth building capabilities due to inflation. But it’s always worthwhile to have a few months worth of living expenses saved up, so you can get a better nights sleep.

2. You’re Debt Free.

Debt is the killer of wealth building, and 77% of Americans have some form of debt that they’re trying to repay.

• Student loans.

• Personal loans.

• Credit card debt.

For the majority, this isn’t good, and when you factor in excessively high interest rates, you’re taking way too much money away from your own wealth building ventures.

But, if you’re debt free, with the exception of your mortgage and maybe a student loan, you’re in a great position to build for your future.

3. You Don’t Count The Days to Payday

Keeping a close eye on when you’re getting paid isn’t necessarily a bad thing, but it can be if you’re in desperate need of the money.

I used to be that guy. The first two weeks of the month I was living like Floyd Mayweather. The next two, I was fighting for my life!

If you’re not waiting impatiently to get paid, you’re clearly doing better than those who wish they’re getting paid sooner.

4. You Don’t Have to Dip Into Savings.

A recent study showed that over half of Americans are having to use their savings for everyday expenses.

That’s right, 50%.

If this is you, most of the time it’s not your fault. But, it’s a habit you have to try to get out of before your savings are wiped out for good.

This won’t feel like an achievement, but if you don’t require savings to get by, you’re already in the top half of Americans when it comes to financial well-being.

5. Your Mortgage Is Paid Off.

For most people, your mortgage is your biggest monthly expense, and will often take decades to pay off.

Roughly 1 in 4 people under 65 have their mortgage fully paid off.

Is yours fully paid off? If so, you’re in a much healthier position than you first thought. If it’s not though, I wouldn’t stress. You’re certainly in no bad position if you’re still paying it off. If you’re reading this, chances are you’re way too young to have had the chance.

6. You Have An Emergency Fund.

An emergency fund is crucial for paying off unexpected expenses, and simply put, helping you sleep better at night.

Many finance experts will tell you to save 3–6 months living expenses for any unforeseen events, like a broken down car or a trip to the emergency room.

This builds on from point 1, but if you have a couple of months of expenses saved up, you have some real strong financial foundations to help you build on top of.

7. You Can Buy Things Without Worry.

Having to worry about money is a horrible place to be, and it’s part of the reason why I want to help others improve their financial literacy.

Worry comes down to not earning enough, mixed with poor spending habits, and an overall negative outlook on the future.

If you don’t worry about your financial situation, you’re at least content with these three factors for the time being.

This is a great place to be.

8. You Can Afford House Maintenance.

This ties in with the emergency fund point.

More than 1 in 5 Americans have no emergency savings, and can’t afford to pay off an unexpected expense without borrowing money.

If you don’t have an emergency fund, start building one ASAP. It will be one of, if not the best thing you ever do for your financial situation.

9. You Have More Than $500 Monthly Disposable Income.

Disposable income is your income minus your expenses, and for me, this is the true measure of wealth.

How much you make is important, but how much you keep is crucial.

The problem most people have is that their income equals their expenses, leaving them with no money left over to invest.

Got money left over each month to invest for your future? You’re doing better than most.

10. You Treat Yourself Regularly.

Similar to the point about worrying, you’d be surprised with the amount of people with no money left over to treat themselves to a:

• New pair of shoes

• Piece of jewellery

• Something nicer like a new car

Got the money for regular upgrades? You’re in a great place financially.

But make sure the upgrades are worth it. If they’re not, you’re just over consuming when you could be building wealth to better your future.

11. You Have A Good Credit Score.

Improving your credit score improves your chances of being accepted for loans.

It enables you to borrow money at lower interest rates, as you’re a more trustworthy person.

Having a good credit score is a very useful thing to have, and if you don’t have a near perfect score, you should consider taking a small loan or two out to help you improve it.

12. You Dine Out Regularly.

Eating out can feel like a large cost for a lot of people. It’s becoming increasingly expensive, and can eat into your monthly expenditure if you do it too often, and your financial position isn’t as strong as you initially thought it was.

But, if you’re able to do it regularly, crucially without worrying about the financial aspect, you’re definitely in a good position.

13. You Make Sensible Spending Choices.

Sensible spending is not about being frugal, or tight, or having secret knowledge.

It’s about discipline, and understanding what you want not just from your money, but from your life in general.

This discipline can put you above the majority, simply by knowing not to waste money on things that have no long term value.

14. You Go On Multiple Holidays A Year.

Your holiday destinations are a common sign of wealth and financial success in modern society.

Having the ability to go on multiple trips a year shows you’re in a good position, as long as you’re not having to borrow money to make ends meet.

Or using cancerous BNPL schemes like Klarna. Please, avoid these (para)sites at all costs.

15. You’re Confident And Excited About The Future.

When looking into the future, a lot of people feel anxious, which can largely be down to a lack of financial prosperity.

But, if you have a more uplifting, confident feel about what’s to come, this is certainly a sign of financial abundance.

16. You Take A Last Minute Holiday Without Guilt.

Going on a spontaneous trip is a great feeling, especially when you have your finances in check, and the monetary impact will be insignificant.

Life, in general, is all about doing things on the fly, but many struggle because of the financial aspect.

17. You Own Multiple Properties.

A real sign of affluence is how much wealth you have in real estate.

Owning a second property, whether it be…

• A holiday home

• A rental property

• A small business

…is a sure sign that you’re comfortable with putting your money to work, rather than needing to save it for a rainy day.

18. You Make Good Financial Decisions Without Needing Advice.

There’s no shame in seeking professional advice, especially when it comes to something as serious as money.

But, having the knowledge and confidence to make big decisions for yourself shows you’re doing well financially.

Continuing to invest in your knowledge is one of the best uses of your time.

19. You Don’t Argue Over Money With Friends & Family.

Money can cause a lot of conflict amongst friends and family.

However, if you’re doing well for yourself, the tension between you and your money is eased, so disputes will be much less likely to happen.

Just make sure people aren’t taking advantage of you for being good with money.

20. You Have Multiple Investments.

Having the confidence to invest your money is something that not a lot of people have.

A sign of financial abundance is knowing that to grow your money, it must be invested, not saved.

• Stocks.

• ETFs.

• Real estate.

This is where your wealth should be parked. Not in cash.

21. You Don’t Bet, or Rely On Bets For Income.

Warren Buffett famously called gambling, a tax on ignorance, which is something that smart people don’t have to pay.

Relying on luck and things that aren’t in your control is not a smart way to grow your money, and is arguably a very foolish thing to do.

22. You’re A Generous Lender & Donate to Charity.

As long as you’re sure to not let people take advantage of you and your money, lending & donating money is a great sign of wealth, financial affluence, and all round success & fulfilment in life.

It also feels great. So, if you can, you should consider helping those in need a little more.

23. You Know Where to Put Your Money.

As I briefly mentioned earlier, you have to invest your money in order for it to grow.

If you have an understanding of inflation, and the ever decreasing purchasing power of fiat currency, you’re at a big advantage compared to those who still try to build wealth with cash, and who (for some reason) still say that investing is too risky.

24. People Ask For Your Opinion About Finances.

If people are coming to you for advice or help with money related issues, this is a huge sign that you’re seen not just by yourself, but by others to be doing well financially.

This is arguably the best sign of them all, as people look up to you and your financial well-being.

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