5 Signs You're Building Wealth Even if You Don't Feel Rich
For many, getting richer doesn't feel the way they expected. Their paycheck may grow and debt may shrink, yet it's still easy to feel one emergency away from financial trouble.
Wealth often shows up in subtle ways long before it looks impressive from the outside. Here are five signs you're making real financial progress, even if you don't feel rich yet.
Consider This: Create a Budget — And Actually Stick to It This Month
Check Out: 14 Subtly Genius Things All Wealthy People Do With Their Money — That You Should Do, Too
1. You're Saving a Bigger Share of Your Income
One of the clearest signs someone is building wealth and finding success doing it, despite not feeling rich, is saving more of what they bring home versus what they're spending each month, said Michael R. Acosta, certified financial planner (CFP) with Genesis Wealth Planning, LLC.
"A household's savings rate, which is the percentage of their annual gross income they're saving on a recurring basis, is a strong financial metric that matters above income alone," he said.
It’s the incremental nature of that progress that can lead to people feeling behind.
2. Unexpected Expenses Don’t Derail Your Finances
While you might not be able to afford European vacations, one of the biggest signs of growing wealth is resilience. This is “where your financial plan no longer depends on everything going perfectly,” said James E. Crooks Jr., financial advisor with Sure Point Financial.
"If you lost your job tomorrow, how long could your household function without changing your lifestyle? Financial resilience often says more about someone's long-term stability than their annual salary," he explained.
In general, Crooks added, a better measure of wealth is “increasing options” instead of “increasing consumption." When someone can "replace a water heater, take unpaid time off, help a family member or invest during a market downturn without disrupting the rest of their financial life," he said that's a sign they are accumulating wealth.
3. Financial Setbacks Don't Trigger Stress
Growing wealth can also show up in how quickly you recover emotionally after financial surprises.
Wendy Molyneux, certified financial education instructor (CFEI), founder of Whole Person Finance and author of “Financial Trauma, Why Money Isn't Just About Money,” said that "financial progress and the feeling of financial security don't always grow at the same pace."
So, it’s perfectly normal to do everything right, such as pay off the credit cards and have a robust emergency fund but “still lie in bed thinking one bad break could ruin you," she added. It's often just a reflection that “your emotions and nervous system haven't caught up."
4. You're No Longer Thinking Paycheck To Paycheck
A strong sign you’re building wealth is when you’re able to consistently make decisions with your future self in mind beyond the paycheck-to-paycheck cycle.
Wealth means that people’s futures become more flexible. Crooks said he finds people who can ask, "How will this decision affect me a decade from now?" tend to make better career, investment, debt and overall lifestyle decisions.
Acosta also noted that wealth isn't typically built overnight. “It honestly can be boring from time to time, but the consistency and discipline around savings is what drives most opportunities for success," he said.
5. You Understand Behavior Over Mathematics
Crooks has found that people who are building wealth don’t get hung up on the “mathematics,” but focus on the “behavior.” That primary behavior in lasting wealth is living in such a way that good financial decisions "become the default."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: