Rachel Cruze: 7 Signs You’re Way Above Average Financially

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When you see others on social media or in real life who appear to live well and not struggle with money, you might feel discouraged about your finances. This comparison can trick you into thinking you’re much worse off than you are and take away from your financial successes.

In a YouTube video, money expert Rachel Cruze discussed seven signs that indicate you’re actually doing better financially than the average American. Find out how many of these signs apply to you and get some tips for staying ahead.

You’re Debt-Free (or Nearly There)

According to the Center for Microeconomic Data, American households had around $18.2 trillion in debt as of the first quarter of 2025. While mortgage loans made up a large portion of that amount, student loans, credit cards and auto loans were other top sources.

If you’re not the average American making debt payments, you can put extra income toward other things, like investments and avoid paying creditors interest. Cruze said you’re also making good progress if you’re currently paying off debt using an approach like the debt snowball method.

You Have Money Saved

The 2025 Northwestern Mutual Planning & Progress Study found that 25% of Americans cited not having savings as the major factor hindering their financial security. This common problem puts you at risk of financial insecurity if you lose your income or have to cover a surprise expense.

Cruze discussed how not having debt makes it easier to save and recommended an emergency fund goal of three to six months of your usual monthly expenses. You’ll also be better off financially if you keep that money in a high-yield savings account and avoid touching it for non-emergencies.

You’ve Planned for Retirement

The recent Ramsey Solutions State of Personal Finance study revealed that 33% of Americans would need to work past age 65, likely due to having insufficient retirement savings. Additionally, credit card debt made it more difficult for many to invest much or at all.

If you’re able to regularly contribute to your retirement fund and prepare for your future, you’re doing better than average, according to Cruze. In addition to your contributions, the interest earned and any employer matches will add up over time.

“Once you are debt-free and you have your emergency fund, start investing 15% of your income into retirement,” Cruze explained.

You’re a Homeowner

You don’t need to own a home to have financial success and Cruze said renting can make more sense when you’re not financially ready for the big commitment. But this milestone comes with several benefits, like potential appreciation, tax perks and stability. Plus, you eventually become free of housing payments once you pay the mortgage off.

If owning a home is on your radar, Cruze’s advice is to prepare to get a 15-year mortgage with a fixed rate and monthly payments of 25% or less of your after-tax income. She also suggested a mortgage payoff calculator for current borrowers so they can become debt-free faster.

You Can Celebrate Other People’s Wins

Comparing yourself to more financially successful people can make you envious of what they have and bitter about your financial situation. If that doesn’t sound like you because you’re content with your situation and glad to see others doing well, you’re in a better place than many.

“Even if you are still living paycheck to paycheck, like getting to this place where you’re not apathetic about it, you still have goals, but who you are and what other people are doing doesn’t have to affect you,” Cruze explained.

You Earn the Median Income

The U.S. Bureau of Labor Statistics reported a median household income in the first quarter of 2025 of $1,192 per week. Cruze said that making about the median amount is a good financial indicator since you can use that money to build wealth. 

Controlling your expenses and not inflating your lifestyle as your earnings increase will help you maximize your income. You can also find extra income sources to speed up the process.

You Practice Generosity

If you’re giving your money or time to help others rather than focus on how much money you have or what you can do for yourself, you’re doing well financially and personally. For example, you might be someone who volunteers at a local organization or regularly donates to a charity.

“There’s a point where you open your hand and you usually have the ability to serve and give to others and that brings a much richer life than just living for yourself,” Cruze added.

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