7 signs you're doing better with your money than you give yourself credit for

August 1, 2023

If you spend any time on personal finance Twitter/Reddit/Instagram, you may feel like you're pretty behind on your finances.

Everyone seems to be a millionaire with multiple six-figure incomes and retiring at 35.

I know sometimes I'm part of the problem..

But I want to be more mindful of sharing the reality of personal finance.

The reality is managing your money is important.

And it is also frustrating, confusing, and boring.

Ok maybe not for me, but this is my career and I know I'm pretty isolated in thinking money is fun.

Our education did not prepare us to understand money. Our brains are designed for short-term survival, not long-term thinking. Our own psychology often works against us when it comes to saving money.

But if you're reading this newsletter, you probably are doing better than you think.

Also, fun addition to this newsletter: scroll to the bottom to see the current book I'm reading!

7 signs you're doing better with your money than you give yourself credit for:

1. You have an emergency fund.

57% of Americans can't cover a $1,000 unexpected expense.

MOST Americans are 1 bad break away from a financially devastating scenario.

If you have at least $1,000, you are above average.

2. Your credit card is paid off.

The average credit card balance is $5,589.

If you're paying off your credit card debt every month, you're killing it.

If you have a plan to pay off your credit cards, you're also doing great.

Most Americans never create a plan to get out of debt.

3. You're saving money.

64% of Americans are living paycheck to paycheck.

And this is not exclusive to low-income.

49% of those making at least six-figures are living paycheck to paycheck.

If you put $5 into savings, you're doing more than most.

4. You're in the stock market.

45% of American adults are not invested in the stock market.

The stock market is one of the best places for your money to grow and beat inflation.

And hint: if you're investing in your 401(k), you probably are in the stock market.

5. You talk about your finances with friends or family.

51% of people don't.

Talking about money shouldn't be taboo.

Studies show the more people are comfortable talking about their money, they better they do financially.

6. You track your spending.

3 in 5 Americans don't know what they spent last month.

Awareness is the first step to change.

And tracking spending is one of the best ways to change your habits.

7. You're trying to improve your finances.

Most people ignore their financial situation.

So if you're reading this email, you are not one of them.

In whatever form you are trying, you are ahead of most.