10 Ways To Tell You're Better With Money Than You Think, According to George Kamel and Rachel Cruze
Most people are doing better financially than they think they are, even if it doesn’t always feel like it. In a recent episode of Smart Money Happy Hour, money experts George Kamel and Rachel Cruze shared their takes on how to tell you’re doing better with money compared to most Americans.
What kinds of examples can you expect to read about? At the top of the hour, the duo hashed out a popular statistic claiming nearly 40% of Americans are unable to cover a $400 emergency in cash. If you do have more than $400 savings in cash, congratulations! You’re part of the 60% of Americans who can comfortably afford a financial emergency.
Keep reading for 10 more examples that demonstrate you’re actually pretty darn financially savvy.
For You: Rachel Cruze: How You Compare Financially to the Average American
See Next: Start Growing Your Net Worth With Smarter Tracking
1. You Still Have a Cushion of Cash Leftover After Payday
You’ve got some margin when you have leftover cash in your checking account after payday. Having this kind of buffer means you’re not living paycheck to paycheck and able to get ahead with your finances.
2. You’re Paying Off Debt/Becoming Debt-Free
Anyone actively in the process of paying off debt (if they have any) is committing to making a significant change with their finances. Their goal is to pay off this debt and they have a plan for how to do it.
“A lot of people live their lives financially in the negative,” Cruze said. “They owe [money] every month for their entire life. If you’re working to get out of that, you are doing better than the average person.”
3. You’re Currently Living in a Past Goal You Accomplished
If the 15-year-old version of you saw the life you have now, how would they feel? Hopefully, you have something right now in this moment you always wanted like your own home, a fulfilling job or a supportive network of family and friends.
4. You’re Investing in Retirement
You’re not prioritizing speculative investments, like betting on sports, to get rich quick. Instead, you’re building your wealth by saving money for retirement.
Do you need to start saving? Once you’ve paid off your debt and have a fully funded emergency fund, Cruze recommends putting away 15% of your earnings in a retirement account like a Roth IRA. And if you receive a 401(k)-matching program through your employer, take advantage of the match.
5. You Own a Home or Plan To Own a Home
It’s challenging to buy a home in today’s housing market, but if this is a goal for you and you’re working towards saving enough money for a down payment you’re in a great spot.
Just make sure to buy a home the right way. Kamel said this means saving up for a long period of time, getting your down payment in place and making sure you’re debt-free with an emergency fund in place. Do not rush buying a home.
6. You Have People in Your Life You Can Trust
Having people in your life you can confidently trust, both personally and professionally, makes all the difference.
“I imagine you are more successful in almost every area of life if you’re not isolated and have people around you who support you and who are also growing," Kamel said.
7. You Have Personal and Professional Goals for the Future
Being goal-oriented (in a healthy way) gives you confidence and hope as a forward-thinking person. Setting personal and professional goals for the future means you’re being intentional and want to grow.
8. You’re Consistently Employed
You don’t have to worry about the uncertainty that comes with long periods of unemployment. Plus, having a stable career allows you to feel pride in the work you do.
9. You Feel Content in Life
It’s incredibly easy to compare where you are and what you have to other people. But when you’re at peace with where you are in your life and feel good and are doing well financially, you’re doing better than most people.
10. You’ve Recently Been Generous in Some Way
This generosity can be financial or it can mean devoting your time to important relationships in your life.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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