Saving & Spending Budgeting & Expenses

5 Signs You’re Doing Better Financially Than the Average American

Use these measurements to see how you stack up against your peers.

Last updated Dec. 23, 2024 | By Michelle Smith | Edited By Chris Kissell

Comparing yourself to others isn’t always the best idea, but it can come in handy if you’re trying to gauge how well you’re doing financially.

For example, do you save enough money compared to others in your age group? How does your emergency fund match up against others who have put away money for a rainy day?

Keep reading: These five metrics can help you figure out where you fit financially compared to the rest of the country.

Do you dream of retiring early? Take this quiz to see if it's possible.

You can cover an emergency of more than $2,000

The Motley Fool survey found that 47% of Americans have an emergency fund they can tap into if they need money suddenly. The median amount in such accounts is $2,000.

Other surveys have found that many people have far less saved for a rainy day — as little as a few hundred dollars.

So, if you think you can comfortably cover an expense of more than $2,000 the next time one pops up, you can feel pretty confident that your finances are more secure than those of many Americans.

But even if you have more saved than most, you might want to consider putting even more away. Many experts recommend having enough money in an emergency fund to cover at least three months’ worth of expenses.

If you aren’t quite at that level yet, don’t worry — but don’t stop saving either.

Earn up to a $300 bonus and grow your money with up to 4.00% APY

This powerful combination checking + savings account from SoFi® allows you to earn up to a $300 bonus with direct deposit and grow your money with up to 4.00% APY.¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>

This is one of the top accounts we’ve seen, and offers like this can be rare. You work hard, and now it’s time to make your money work for you — with SoFi®, you can grow your money with hardly any effort!

SoFi® has no account or overdraft fees and additional FDIC insurance up to $2 million on deposits is available through a seamless network of participating banks.² We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a> ³ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a> Plus, you can receive your paycheck up to 2 days early.⁴ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.

How to earn up to $300: Sign up and make a direct deposit within the first 25 calendar days of the promotional period, then collect a $300 cash bonus with a direct deposit of $5,000 or more.

Open your SoFi® account and set up direct deposit

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SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit

Earn up to 4.00% APY¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at <a href="http://sofi.com/banking">sofi.com/banking</a>. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a> and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.⁵ SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of Dec. 3, 2024. There is no minimum balance requirement. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a> FDIC Insured.³ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/terms">SoFi.com/banking/fdic/terms</a> See list of participating banks at <a href="http://sofi.com/banking/fdic/receivingbanks">SoFi.com/banking/fdic/receivingbanks</a>

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You have more than $4,500 in savings

More than half of Americans — 51% — have $5,000 or less stored in savings accounts, according to a Motley Fool survey. Additionally, 35% had $1,000 or less saved.

The median amount Americans have tucked away is $4,500. That means half of Americans have more than that amount, and half have less.

So, give yourself a pat on the back if you have at least that much saved. Then, get to work saving even more.

Earn potentially $1,000s in basically passive income by opening this account ASAP

You can turn your existing money into even more money by basically doing nothing. Yes, it sounds insane. But it’s true — and it all depends on how early in life you open a high yield savings account.

The American Express® Savings High Yield Savings Account offers a rare 3.80% (as of December 17, 2024) annual percentage yield (APY)⁶ The Annual Percentage Yield (APY) as advertised is accurate as of December 17, 2024. Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened.  — compared to the national average APY of 0.47% (as of Feb. 8, 2024). This could be worth hundreds, even thousands of dollars in passive income.

This is all thanks to compound interest — the earlier in life you start putting money into this type of account, the more you can earn over time. As Ben Franklin put it, “Money makes money. And the money that money makes, makes money.” Bam.

Let’s say you put $50,000 into a high yield account with a 3.80% (as of December 17, 2024) APY at age 30. Then, you contribute $5,000 a year, every year, until age 50. At that rate with interest compounding daily, you’d walk away with $265,300.43! But ... if you start at age 45, you’d only have $88,557.45.⁷ For illustrative purposes only. Interest rate and APY may change after initial deposit.

Open an account today — the sooner, the better. There are NO fees, and you can withdraw your money whenever you need it. Plus, can rest assured that your funds are fully backed by the service reliability of American Express, Member FDIC. Terms Apply.

Click here to open an American Express High Yield Savings account

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American Express® Savings - 3.80% annual percentage yield (APY)⁶ The Annual Percentage Yield (APY) as advertised is accurate as of December 17, 2024. Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened.

High Yield Savings Account. No Minimum Required Deposit or Balance.⁸ There is no minimum balance required to open your Account, to avoid being charged a fee, or to obtain the Annual Percentage Yield (APY) disclosed to you. Terms Apply.

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You have less than $6,500 in credit card debt

The average American adult holds $6,569 in credit card debt, according to a LendingTree analysis. And the situation appears to be growing worse with time. If you have less than $6,500 in credit card debt, your debt load is better than most.

By the third quarter of this year, total credit card debt in the U.S. stood at $925 billion, a $38 billion jump from the first quarter, according to data from the Federal Reserve Bank of New York.

But it’s crucial to keep that debt as low as possible going forward. That’s especially true if you plan to retire soon, as your fixed income can make it harder to pay down credit card debt.

The longer you go without paying off your balance, the faster your credit card debt can spiral out of control. So, get to work paying down credit card debt as soon as possible.

Ask this company to pay off your credit card debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief is designed specifically to help you get out of credit card debt faster, without having to make drastic life changes. With National Debt Relief, you could pay off your credit card debt (with potentially way less interest) in one simple monthly payment.⁹ Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.

How to get National Debt Relief to pay off your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can immediately assist you in paying off your debt, but only if you schedule the assessment.

Try it

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Ask This Company About Paying Off Your Credit Card Debt

Learn how you could get out of $30K+ in credit card debt in as little as 12-48 months.⁹ Clients who are able to stay with the program and get all their debt settled realize approximate savings of 46% before fees, or 25% including our fees, over 12 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for various reasons, including their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period of time. We do not assume consumer debt, make monthly payments to creditors or provide tax, bankruptcy, accounting or legal advice or credit repair services. Not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. Depending on your state, we may be available to recommend a local tax professional and/or bankruptcy attorney. Read and understand all program materials prior to enrollment, including potential adverse impact on credit rating.

Try National Debt Relief

You have more than $30,000 in your 401(k)

According to Vanguard’s “How America Saves 2022” report, these are the median amounts Americans between the ages of 34 and 54 have saved in their defined-contribution plans:

Ages 34-44: $36,117
Ages 45-54: $61,530

So, if you’re in your mid-30s and have more than $36,000 in your 401(k), you’re doing better than most of your peers.

But again, this is simply a comparison against others your age. Just because you are saving more than they are doesn’t necessarily mean you are saving enough.

Many of us will have a long retirement. That means you should save a lot of money so you will have enough cash to see you through your golden years. Some experts have suggested saving twice your annual income by age 35.

So, if you only have $36,000 in retirement savings at age 35, you probably aren’t saving enough.

If you are unsure of how much you need to save, sit down with a financial advisor and make a plan to prepare financially for retirement.

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Your total net worth is at least $100,000

Net worth is more than just a financial metric used for the richest of the rich. Since your net worth is what remains when you subtract liabilities from assets, it can be a useful calculation for anyone who wants to understand where they stand financially.

To calculate your net worth, find the total cash value of any property, jewelry, cash, investments, insurance policies, and other assets. Then, subtract any debt, such as mortgage loans, student debt, and credit card obligations. What's left is your net worth.

According to the Federal Reserve’s 2019 Survey of Consumer Finances — the most recent survey — median net worth for Americans ages 35-44 stood at $91,300.

For Americans ages 45-54, that number was $168,600.

Net worth isn’t the only way to measure your financial success, so if your net worth isn’t over $100,000, don’t panic. Still, a net worth calculation can tell you which areas of your financial life you need to work on if you want to meet all your future financial goals.