It’s crucial to know about our financial health for obvious reasons, but many people also find it super interesting because it tells us where we stand within society, and who doesn’t love a comparison? Here are 18 signs that say you’re thriving compared to the average American.
High Net Worth
Experts share with Forbes that, as an American, you need both liquid and non-liquid assets worth $2.2 million to be considered rich. This net worth represents financial success and excellent wealth accumulation over the years. Having more assets than liabilities is something many people struggle with and is a sure sign of being wealthy.
Minimal Debt
When you have no debt, whether from card balances or student loans, you’re free from the financial burden 77% of Americans endure. You have more resources to put into your savings account or invest in money-making schemes, improving your chances of growing your finances even further.
High Credit Score
A credit score above 718, the average for Americans, is a sign of better financial stability. It means you’re able to meet repayments and maintain low debt levels consistently, and you also have access to higher loans and lower interest rates. A perfect score of 850 puts you in the top 1.5%.
Substantial Savings
More than half of Americans don’t have an emergency fund, and many of those who do have only $1,000 or even less. If you save more than everyone else around you, or if you have savings that cover your expenses for up to six months, you should best believe you’re better off than most other people.
Owning Property Outright
Fully owning your home, free of mortgages, exemplifies significant wealth and long-term financial success. Real estate ownership represents a substantial financial commitment, and achieving full ownership demonstrates dedication and effective financial planning. This level of asset ownership is less common among the average population.
High Home Value
Owning a home significantly above the national median price of $358,000 reflects substantial wealth and the ability to invest in high-value real estate. High-value properties require considerable initial investment and ongoing expenses, and owning one represents how much financial resources you have.
Investment Portfolio
A diversified investment portfolio with stocks, bonds, and mutual funds indicates advanced financial planning and a commitment to growing wealth over time. Regularly investing in the market shows a sophisticated understanding of financial markets, especially considering that many Americans have limited investments and focus instead on immediate financial needs.
Passive Income Streams
Generating income from sources other than a primary job, such as rental properties or dividends, represents financial savvy and the use of effective wealth-building strategies. Multiple income streams can buffer against economic downturns, providing financial stability and growth that are less reliant on an active source of income, which you see with other people.
Generous Philanthropy
Regularly donating to charitable causes or setting up a foundation indicates substantial disposable income and a commitment to social responsibility. With most Americans giving less frequently and in smaller amounts, philanthropy at a significant level demonstrates a commitment to social responsibility and a greater capacity to support others financially, reflecting both generosity and wealth.
Luxury Purchases
Frequent luxury purchases, such as high-end vehicles, designer clothing, or exclusive vacations, often require substantial financial resources far beyond the reach of typical budgets. When you’re able to make these purchases, it means you live a lifestyle of affluence and comfort with disposable income well above average.
Private School Education
Affording private school tuition for children is a strong wealth indicator and reflects a priority on high-quality education. Private education can be costly, often surpassing public school expenses significantly, and choosing it not only reflects greater financial capability but also shows you have a priority to invest in high-quality education.
Professional Financial Advice
Regular consultations with financial advisors to manage investments and plan estates demonstrate significant assets and a commitment to preserving and growing wealth. Many Americans do not have access to such resources, and access to them could open up chances for even more wealth generation.
Multiple Real Estate Holdings
Owning multiple properties, whether for personal use or investment, signals considerable wealth and a strategic approach to asset accumulation. Real estate investments require substantial capital and offer returns through appreciation and rental income, so you have more stability and potential for financial growth.
Travel Frequency
Frequent international travel for leisure reflects significant discretionary spending power and a lifestyle of exploration and adventure. Regular travel requires both time and money, often out of reach for those living paycheck to paycheck or being held down by work. Being able to afford it simply means you have more finances and freedom than most.
Membership in Exclusive Clubs
Being part of exclusive clubs or societies often requires substantial fees and an ongoing financial commitment. Having enough to pay for them signifies that you have both wealth and a desire for elite networking. They reflect a high social and financial standing, the cost and exclusivity of which are beyond the reach of many.
Owning High-Value Collectibles
Possessing valuable collectibles, such as art, vintage cars, or rare items, signifies wealth and a sophisticated approach to asset diversification. Collecting high-value items requires disposable income and often offers investment opportunities, and engaging in this practice reflects that you have more financial resources to spend on your expensive passions.
Having Estate Plans
When you have a detailed estate plan in place, it likely means you have a significant number of assets and a need to manage this wealth posthumously. Estate planning involves complex decisions and legal considerations, often requiring professional assistance (and hence more money), and many Americans are only forced to either delay or overlook this aspect of financial planning.
Premium Health Care
Affording premium health care services, such as private doctors or cutting-edge treatments, indicates that you have substantial resources and a commitment to health. Higher-quality health care often comes with increased costs, and being able to afford it isn’t a privilege enjoyed by other Americans with average incomes.
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