10 Signs You’re Not Behind Your Peers Financially (Even Though It Feels Like You Are)

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It’s normal to feel like you’re lagging behind your peers money-wise nowadays when social media often shows off the best parts of people’s lives. But remember, your financial path is your own, and a few things can show you’re doing alright, even if it doesn’t always seem that way. 

Here’s how you can tell you’re not as far behind with your money as you might think.

1. You Have an Emergency Fund Covering at Least 3 Months

An emergency fund forms the basis of financial stability. You’re better than most if you’ve put aside three to six months’ living expenses, which depends a lot on your lifestyle expenses but is typically at least $10,000. 

A Bankrate survey shows that overall, across all demographics, only about 44% of people have at least three months in savings, with 16% of people having three to five months and 28% having six or more months. And over one-fourth of people have zero emergency funds whatsoever.

If your emergency fund matches or exceeds at least three months of your living expenses, it shows you’re creating a strong financial base. So, if you follow this financially sound approach, you’re heading in the right direction; you shouldn’t stress about lagging behind your peers.

2. You’re Putting Money into Retirement Accounts

Putting money into retirement accounts like a 401(k) or IRA shows you’re thinking ahead and planning. 

The Federal Reserve’s Survey of Consumer Finances said that people aged 35 to 44 have saved about $45,000 for retirement on average. This is the median number for this age group. 

If you keep adding money, even if your balance looks small now, you’re setting yourself up to succeed in the long run.

3. You Spend Less Than You Earn

Living within your means is a big deal. No matter how much they make, many people have a hard time not spending too much. 

By making a good budget and staying away from the debt you don’t need, you’re keeping your money healthy and avoiding the trap of making it from one paycheck to the next.

4. Your Debt Levels Are Manageable

Not all debt hurts you, but too much high interest can slow your money progress. 

The average American person has over $65,000 in debt, with the average being well over $130,000 in a household of two.

If you’ve kept your debts — like student loans, credit cards, or mortgages — under control and you’re paying them off consistently, you’re better off than many who feel swamped by what they owe.

5. You’re Putting Money into Self-Improvement

Spending money to learn, gain skills or get certifications that boost your earning power is a smart money move. 

Committing to growing as a person often leads to making more money over time, which can make up for any feelings you’re lagging behind.

6. You Have Clear Money Goals

Setting money goals and working to reach them shows you’re smart with cash. Whether you want to buy a house, start a company or travel the world, having a plan proves you’re taking charge of your money future.

Even if you’re still on the way, the fact that you have goals is a good sign.

7. You Try To Learn About Money

Learning about personal finance on your own — by reading books, taking classes or talking to money experts — shows you’re serious about getting your finances in order. This know-how gives you the tools to make wise choices and roll with the punches when your money situation changes.

8. You Keep Your Credit Score Above 700

A solid credit score helps you get better interest rates and money opportunities. Keeping an eye on your credit score and making sure it stays healthy proves you’re responsible, with money setting you apart from peers who don’t pay attention to this.

On average, people under 42 years old have a credit score below 700, so by building and maintaining a credit score above that, you’re doing far better than many Americans.

9. You Save Up for Big Purchases

Putting money aside for big things like a wedding, car, home upgrade, or trip shows you can handle your money to reach bigger money goals without going into debt.

10. You Give to Others With Purpose

The ability to give money to charity or lend a hand to others, even in small amounts, shows a certain level of financial stability. It suggests that you’ve handled your money well enough to support causes that matter to you.

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