3 Key Signs You Are More Financially Healthy Than You Realize
Written by
Dawn Allcot
Edited by
Cory Dudak
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According to the Northwestern Mutual 2024 Planning and Progress study, one-third of adults don’t feel financially secure. But you might be in better shape than you imagine, according to former financial advisor Humphrey Yang.
In a YouTube video, he shared several signs you might be in better financial health than you think.
You Don’t ‘Wealth Signal’
If you use your wealth to buy designer clothes, sneakers or luxury cars instead of saving or investing, your financial health might be worse than you believe. As another YouTube finance pro, Jaspreet Singh, has said, “Make yourself rich first by using your money to buy investments.”
You Have At Least $2,000 in Emergency Savings
Many finance experts recommend having three to six months of living expenses saved in an emergency fund. But if you have at least $2,000 in savings, you’re doing better than most Americans.
You Meet Your Spending and Savings Targets
If you have a budget with savings and investing goals included, you’re ahead of most Americans.
Yang said he uses a customized Google Sheet for budgeting. “The best thing about tracking your expenses is that not only is that going to show you that you’re doing well financially, you can also track how your expenses trend over many different years.”
Tracking your income, expenses and spending can also show if your financial actions align with what’s important to you. “If you’re able to gauge your own financial success based on your own standards and beliefs, I think that this is a huge sign that you’re doing well financially,” said Yang.
Bottom Line
At the core of these observations lies a simple philosophy, outlined in the book “The Gap and the Gain” by Dan Sullivan and Dr. Benjamin Hardy, which recommends looking at how far you’ve come rather than how much further you still have to go when measuring progress towards your goals.
People who train their brains to think this way will feel more motivated to work toward their goals and feel more fulfilled by every achievement.
“Achievement without fulfillment is the ultimate failure,” Kien Vuu, M.D., a performance and longevity doctor, said in the OrangeBall Creative blog.
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