Identifying signs that indicate individuals are faring better financially than the average millennial involves observing certain behaviors, choices, and circumstances. These indicators go beyond superficial markers of success and delve into deeper financial stability and management.
1. You Are Not Dependent
Being financially independent means you cover your living costs without help from family or friends. This independence is crucial as it shows you can manage your finances effectively.
2. You Pay Your Bills on Time
Paying bills before they’re due is a key indicator of financial responsibility. It helps avoid late fees and keeps your credit score healthy, making future financial dealings easier and cheaper.
3. You Have More Than $10,000 In Savings
An Average Millennial have at least $10,000 in savings that can shield them from the need to borrow in case of minor emergencies. If you have more than that you are doing financially better. This buffer helps you stay financially stable and avoid debt from unexpected expenses.
4. You Don’t Pretend To Be Rich
Living within your means and not trying to appear wealthier than you are can lead to genuine financial health. This approach avoids unnecessary debt and financial stress related to keeping up appearances.
5. You Have Less Than $90,460 in Debt
An average American has a Debt of $90,460 reported by CNBC, Staying below this average U.S. household debt level suggests you manage your finances better than many. It’s a sign of prudent borrowing and effective debt management.
6. You Have a Positive Attitude
Maintaining a positive outlook on your financial situation can lead to better financial decisions and opportunities. Optimism encourages continuous improvement and learning in financial management.
7. Your Credit Score Is Above Average
With the average millennial’s credit score around 690, having a score above this range is a strong indicator of financial health. A higher credit score shows you’re responsible with credit management and can lead to better interest rates on loans and credit cards, saving you money in the long run.
8. You’re Regularly Contributing to Retirement
If you’re already putting money into a retirement account, especially if you’re contributing more than the typical employer match, you’re setting yourself up for a secure future. Early and consistent retirement savings compound over time, making a big difference in retirement.
9. You Own Assets
Owning assets like a home or investments in stocks or mutual funds signifies wealth, financial stability, and smart planning. These assets typically appreciate over time, increasing your net worth and financial security.
10. You Regularly Review Your Finances
Reviewing your finances regularly means you’re proactive about understanding your spending and saving patterns. This habit helps identify areas to cut costs and optimize savings, keeping your financial goals on track.
11. You Invest in Your Future
Investing, whether in retirement accounts, stocks, or education, shows foresight in securing your financial future. It indicates an understanding that money needs to grow over time through wise investments.
12. You Have Health Insurance
Having health insurance is a sign of financial prudence. It protects against significant medical expenses that could otherwise deplete savings or lead to crippling debt.
13. You Dont Rely On Debt
Not depending on debt to fund your lifestyle is a major indicator of financial health. It means you pay cash when you need something within your means and save up for big purchases instead of borrowing. This habit not only keeps interest costs low but also strengthens your financial stability.
14. You Have Financial Goals
Setting and working towards financial goals, like buying a home or saving for a vacation, displays a structured approach to money management. It reflects a strategic mindset towards achieving financial stability and dreams.
15. You’re Educated About Finances
Educating yourself about financial matters, from budgeting basics to investment strategies, equips you with the knowledge to make informed decisions. This continuous learning is key to adapting to changing financial landscapes and achieving long-term security.
50 Super Simple Side Hustle Ideas (& How to Make Them Work)
Choosing a side hustle can be fun compared to getting a part-time job because they allow you to pursue what you’re actually interested in, like perhaps fitness or writing, while providing you flexibility!
Read More: 50 Super Simple Side Hustle Ideas (& How to Make Them Work)
10 Frugal Lessons I Learned From Being Flat Out Broke
I was living in the middle of a big city all by myself and paying my bills on a server’s salary. I had zero savings and was living paycheck to paycheck just to get by; frugal living was a necessity.
Read More: 10 Frugal Lessons I Learned From Being Flat Out Broke