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Managing money is a lot like running. Many people dislike it, and most are just trying to reach the finish line without burning out.
But a few are like elite athletes — effortlessly staying ahead of the pack. In fact, you might be managing your finances so well that you don’t even realize you’re part of this high-performing group.
Here are five clear signs your personal finances are well above the average American’s, and what you can learn from them if you’re not.
Debt is a fact of life for many Americans — about 90% of adults carry some form of it, according to Debt.org. (1) The bulk of this debt is typically mortgages, which are often considered “good debt” because they can help build equity.
If you’re struggling with debt, the two most common techniques for paying it down are the avalanche and snowball methods.
The avalanche method focuses on paying down your highest-interest debts first. This can create a cascading effect where, after the big debt is paid, you knock off the smaller ones quickly.
Meanwhile, the snowball method starts with paying down your smaller debts one after another to build up steam. Then, once you’re down to one debt, you put all your resources into paying it off.
On the other hand, if you’ve avoided consumer debt entirely — and especially if you’ve paid off your mortgage — you’re in a rare financial position.
Without the burden of interest payments, you likely have more flexibility to save, invest and grow your wealth, putting you well ahead of the average American.
If you have any retirement savings at all, you’re already ahead of many. About 40% of Americans have no money in retirement accounts at all, according to Gallup. (2)
Even among savers, balances tend to be modest. Fidelity reports that the average 401(k) balance for Americans aged 40-44 is about $109,100. (3)
For younger age groups, it’s significantly lower. So if you’re under 40 and already have more than $100,000 saved, you’re notably ahead of your peers.
Even older savers aren’t that far ahead — those over 50 have average 401(k) balances between $199,900 and $251,400. If you’re nearing retirement with much more than that, your finances are well above average.
Even then, these figures fall well short of what most people think they’ll need for retirement. According to Northwestern Mutual, Americans believe they’ll need $1.26 million to retire comfortably. (4)
If you want to boost your 401(k) balance, you could invest in a Gold IRA with Goldco. Gold typically performs well during times of economic uncertainty, and recently broke past the $4,300 per ounce benchmark in mid-October for the first time. (5)
By opening a Gold IRA, you could be looking out for your future self and cushioning your retirement by potentially hedging your investments against economic turbulence. Investing in gold through a tax-advantaged account can also help stabilize your finances by allowing you to invest directly in physical precious metals rather than stocks and bonds.
You can even get a free gold and silver kit shipped to you, which includes an instant match of up to 10% in free silver depending on your contribution. Terms and conditions apply.
If you want to boost your IRA, but aren’t sure about gold, another option is to tap into inflation-resistant assets like real estate.
This is where Homeshares could come in, which allows accredited investors to gain direct exposure to a portfolio of owner-occupied homes in top U.S. cities. You can access the $34.9 trillion U.S. home equity market through Homeshares’ U.S. Home Equity Fund — without the hassles of buying, owning or managing property.
The fund focuses on homes with substantial equity, using Home Equity Agreements (HEAs) to let homeowners access liquidity without taking on debt or interest payments. This can create an attractive, low-maintenance investment vehicle for retirement, with a minimum investment of $25,000.
With the rising living costs and stagnant wages, saving has become a challenge for many Americans.
As of September, the personal savings rate was just 4.6%, according to Federal Reserve data. (6) This figure refers to the percentage of their personal disposable income left over for saving after other accounts are settled.
A 2024 study by New York Life found that the average American saved about $7,460.94 over the year. (7)
So, if you’re saving more than $10,000 annually — or putting away a double-digit percentage of your income — you’re well ahead of the curve. A strong savings rate not only sets you apart but also accelerates your path to financial goals.
No matter what you’re saving, it’s important to get the best interest rate you can so that your money is being put to work in the background.
For instance, a Wealthfront Cash Account can provide a base variable APY of 3.75%, but Moneywise readers can snag an exclusive 0.50% boost over their first three months for a total APY of 4.25% provided by program banks on your uninvested cash. That’s over ten times the national deposit savings rate.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
If you’re less concerned about liquidity, you could instead consider using Certificates of Deposit (CDs) to lock your money in for a fixed term in exchange for a guaranteed return.
Rates vary by term but can exceed 4% for longer durations. This can make CDs a low-risk savings option that can yield higher interest than some top savings accounts.
With MyBankTracker, you can shop and compare top certificates of deposit rates from various banks nationwide.
Their extensive database, updated daily, highlights the most competitive rates and offers personalized recommendations based on your risk tolerance and time horizon — helping you find the right CD to match your savings goals.
Just keep in mind that CDs are not as liquid as high-yield savings accounts.
Only one-third of U.S. adults have hired a financial advisor, according to Northwestern Mutual’s 2024 Planning & Progress Study. Among millionaires, however, that number jumps to 69%. (8)
If you’re a part of this elite club and don’t have an advisor, you could consider working with the tax experts and professional advisors at Range. They offer white-glove financial services to households making at least $200,000 a year, or individuals making a minimum of $250,000.
Once your equity enters this ballpark, one of the biggest financial pain points can be asset under management (AUM) fees. These fees mean that portfolio managers take a percentage of the value, typically between 0.5% and 2%, of your managed assets — so their fees scale with your wealth.
Range offers 0% AUM fees for advisory services and a flat-fee structure so that you can preserve more of your wealth. What’s more, they also offer an all-in-one solution for everything from alternative asset management to taxes — all of which is informed by modern AI solutions, but backed by a team of certified financial professionals.
And the best part? You can book a complimentary demo to see if Range can meet your comprehensive financial needs.
But even if you’re not a millionaire, working with an advisor can improve how you manage your money and help you reach your goals faster. And there are services that can get you started on the path to millionaire status.
With Vanguard, you can connect with a personal advisor who can help assess how you’re doing so far and make sure you’ve got the right portfolio to meet your goals on time.
Vanguard’s hybrid advisory system combines advice from professional advisers and automated portfolio management to make sure your investments are working to achieve your financial goals.
Economic anxiety is so common that even many millionaires don’t feel secure. In fact, only 32% of millionaires in the same Northwestern Mutual said they consider themselves “wealthy.”
So if you genuinely feel financially secure or even “rich,” you’re not just outperforming the average American — you may even be ahead of wealthy peers. Confidence in your financial position is a powerful indicator that you’re operating at an elite level.
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