Rachel Cruze: 6 Signs You’re Better at Money Than You Think

©Rachel Cruze

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Money expert Rachel Cruze is known for her approachable and encouraging take on personal finance. She recently posted a YouTube video to help people anxious about money see that, if they meet six basic criteria, they’re on the right track and managing their finances responsibly.

1. You Have More Than $400 Saved

In her video, Cruze cited a 2022 study showing that only 63% of Americans could cover a $400 expense using cash, savings or a card paid in full the same month. A recent Empower survey shows that people aren’t doing much better in 2025. The median emergency savings balance nationwide is only $500, with 52% wishing they’d started saving sooner.

If your savings balance is in the high three figures or more, you’re doing better than most Americans under 60, the Empower survey shows. If you have $1,000 or more, you’ve reached the first of the seven financial Baby Steps — the brainchild of Cruze’s financially famous father, Dave Ramsey. 

2. You Don’t Have To Wait for Your Paycheck To Pay Bills

Cruze also said that if you can handle the bills before your next payday, you’re doing better than many others, even among higher earners. According to a recent PYMNTS study, 48% of individuals earning above $100,000 per year live paycheck to paycheck. 

If you’re among those who have escaped the paycheck-to-paycheck cycle, you’re doing better than most. You have enough breathing room to put bills on autopay without stressing about the payment date. And, as Cruze noted, you don’t need to go into debt to cover the basics.

3. You Have No Debt or Are Paying It Off

Speaking of debt, you’re undoubtedly doing better than average if you’re debt-free or are actively working toward getting there. According to the Federal Reserve’s most recent Survey of Consumer Finances, 77.4% of American households carry debt, an increase of almost a whole percentage point since the previous survey in 2019. 

If you haven’t started paying off your debt, Cruze recommended making a list of your debt balances from smallest to largest. Set up minimum payments on all debts except the smallest, which you’ll focus on paying off altogether. The more of your income after expenses you can put toward that debt, the faster you can pay it off.

4. You Have Retirement Savings

Cruze’s fourth indicator of financial responsibility is having money stashed away for retirement. A recent Gallup poll showed that 4 out of 10 Americans have no retirement savings plan — no 401(k), 403(b) or individual retirement account, better known as an IRA. Of nonretired respondents without that type of plan, only 31% believe they can live comfortably when the time comes.

If you’ve already started saving for retirement, you’re already moving in a positive direction, Cruze said. Her recommendation is to put 15% of your income in retirement accounts, provided you’ve paid off your debts first. If you can’t reach the 15% goal, draw up a budget and determine how much you can afford. The sooner you start, the more time your money has to grow.

5. You Check Your Bank Account Regularly

Cruze has encountered many people who have no idea how much they have in the bank — and she worries. 

“You have to live in reality,” she said. “You have to know what’s going on with your money.”

She consistently recommends setting a monthly budget and checking it regularly to stay aware of where your money is going. If you know how much you have going in and out, you can adjust your spending and saving to meet your goals. If you already do this, you have a better grasp on your financial health than many others, even if the numbers aren’t where you want them to be.

6. You Can Practice Generosity

Cruze sees giving to others as a core element of financial health, and it’s not about having “enough.” While many live with a scarcity mindset, telling themselves they’ll start giving when they “have more,” Cruze believes that money-smart people practice generosity at all stages of their financial journeys.

Giving, Cruze said, impacts your character, especially when you integrate it into your budget at early stages. By sharing with others while you learn to manage your expenses, get out of debt and start saving, you build generosity into who you are in relation to money — and that’s a crucial part of the process.

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